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BTC Bearish Breakout, NEO Between the Trendlines, XEM On the Upwards Channel: Price Analysis, Oct. 3, 2018

  • Vaido Veek
    📈 Price Predictions

    Bitcoin made a bearish breakout, NEO is between the two important trendlines, NEM looks good compared to other altcoins

BTC Bearish Breakout, NEO Between the Trendlines, XEM On the Upwards Channel: Price Analysis, Oct. 3, 2018
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

*** Please note the analysis below is not investment advice. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of U.Today. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin made a breakout downwards from the triangle

Yesterday we got a breakout from the triangle. It was enough that the four-hour candle closes below the trendline, below the EMA's and the movement downwards be able to continue. This was almost a perfect breakout trade, we got a candle close below the triangle trendline. In the one-hour time frame, BTC price made a retest and bounce-back after it touched the breakout area.

The daily candle close was above the $6,500, but currently, on the four-hour chart we have a close below the round number, and the price is again on the strong support area (blue line). Last week this area played a significant role when we discovered the "Inverted Head & Shoulders" pattern, and again we are 'hanging' above $6,460, and the bulls hope that the strong support level holds the price. If it breaks (four-hour candle close below the line), then it will probably mean that the bearish momentum will continue and the next stop is around $6,330-$6,350. There is currently the major counter trendline since Sept. 8. If we fall even lower, there are two strong support lines which will stop the price. To stay on the market is a bit risky because we don't know how strong this bearish momentum could be. However, the breakout from the triangle and candlesticks layout indicates that we might see another leg downwards (confirmation is the candle close below the blue line at $6,460).

NEO (NEO/USD) is between the triangle trendlines

NEO has been respecting both triangle trendlines. Recently, it tried to break above the upper trendline which works as a resistance but didn't manage to push through from there. There were several attempts to break through the bottom trendline which is also the major counter-trendline (it works as a support), but this level has held us pretty nicely.

Currently, as BTC breaks through the round number area, NEO breaks below the strong support area, which has been historically a good support and resistance level. Now, NEO price is on the on the edge, at the moment this is our last support before the September low level at $16.15. If NEO price drops below that strong trendline, then the next critical zone is the September low where we have to watch what BTC does. So, currently, if BTC drops below the $6,469, then NEO drops below the major counter trendline (counter, because the overall trend is down).

To be bullish:

1. This trendline has to hold the price

2. We have to break above the strong area (blue line)

3. We have to break above the triangle upper trendline (trendline and the blue line makes a crossing area so, this level is very hard to beat).

If it happens, then the first target would be the round number $20 and the strong area at $20.7

NEM (XEM/USD) is technically good compared to other alts

Currently, NEM is trading on the channel. It has been respecting those channel trendlines, and it has made pretty good profit opportunities. (after we mentioned that XEM will explode, it made a 27 percent gain)

After BTC broke out from the triangle downwards, XEM has also come down pretty quickly but it is still on the channel, and it has an opportunity to make the higher low. At the moment, the price is a very strong support area, support criteria:

1. The round number $0.1, which works as a support

2. EMA 200 is exactly on $0.1, and it also works as a support

3. The Fibonacci golden ratio 62 percent matching with the criteria mentioned above

4. Plus if we drop just a little bit lower, then there is the 50 & 100 EMA's and the channel bottom trendline

So, currently, we think that if we see a break and close below the round number, then it's the first sign that NEM might go downwards, and the full bearish confirmation would be when we see a candle close below the trendline.

If BTC finds the support from the current level at $6,460, then NEM has technically a very good platform to go higher levels, but it all depends on what Bitcoin does.

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About the author

Vaido Veek hopes to become a leading voice in technical analysis by educating people about how the perfect TA  should look like. He has over 5 years of charting experience and loves to solve the patterns that   they show us. His slogan is "keep it simple"!

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Crypto Community Must Unite, Speak With One Voice to Make Movement Successful

  • George Shnurenko
    🤷 Opinions

    The past year has brought incredible things but has also revealed weaknesses in the cryptocurrency movement.

Crypto Community Must Unite, Speak With One Voice to Make Movement Successful
Cover image via u.today

For the crypto community, 2017 is marked by both astounding progress and disturbing imbroglio. Bitcoin has broken into the mainstream financial market with the launch of Chicagoan futures products. New investors flocked to exchanges unprepared for mainstream interest, bought up all kinds of coins and excitedly participated in conversations.

The crypto community may have never seen so many new curious members joining since Bitcoin’s inception in 2009. At the same time, the Bitcoin Cash hard fork pitted one part of the community against another, with anxious onlookers stuck in between. Governments are also beginning to watch the surge of investor interest with wariness.

Communication, governance necessary

Everything that happened last year, the good and the bad, should serve as a wakeup call for people that consider themselves part of the crypto community or even those who think they can just hodl some crypto, sit on the sidelines and watch. This is paradoxical considering the trustless nature of Blockchain, since making cryptocurrencies work requires communication, negotiation and ultimately governance. In fact, governance may be most important of all, as the canceled SegWit2x and the four-year scalability debate has shown. Even more ironic is that the crafting of a healthier ICO market may require anarchists to sit down with government officials.

So far, communication and the ability to work together is lacking in the cryptocurrency community. Instead, what we have are mysterious whales doing unknown things in the marketplace and Wild West pump-and-dump Telegram channels. Unifying voices are lonely and quickly drowned out.

While it’s probably wise to constantly look out for one’s own interest and reputation, it’s probably not wise to only look out for oneself. All who remotely care about the intermediate-term prospects of crypto would better serve themselves and others as both a member of a newly rising community and member of a new form of economy.

Community must unite

Bitcoin was born as a rebellion against the existing financial system. The roles of cryptocurrencies and tokens today are less clear. One way or another, as more money pours into coins, government action from different parts of the world is almost sure to follow. What will be the community’s reaction then?

At the end of the day, no one can stand alone.

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About the author

George Shnurenko is a Bitcoin and cryptocurrency enthusiast, financial analyst and writer. He's majoring in history but he believes that the digital currency which has taken the world by storm will bring about change to all us humans. 

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