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Ethereum (ETH) Bitcoin Cash (BCH) Price Analysis – Scoping Out a Capitulatory Opportunity

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Ethereum
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Given the indisputable bear cycle that we have witnessed in the crypto complex for essentially the entirety of 2018, and given the relatively sparse options that traders have at hand to take advantage of short side strategies in this asset class, generally speaking, the game that most everyone is playing here has something to do with market timing around a bottom-picking strategy.

Bear markets make bottoms by exhausting a supply of sellers. It’s a process that is about gauging the “lean” of the marketplace across a number of time frames. For both Ethereum (ETH) and Bitcoin Cash (BCH), we see this process as potentially nearing that golden inflection point. As such, our goal today is to examine the charts for these two coins with the objective of scenario-building based on years of experience across many different assets given the technical picture often involved in defining major turning points.

Ethereum (ETH)

Price Analysis:

  • High: $445.98
  • Low: $429.00
  • Major Resistance Level: $500
  • Hourly MACD: Steady Downside Momentum

Chart courtesy of tradingview.com

 Ethereum (ETH) continues to evidence the modal character of a downward trending market on multiple time frames. But, over the course of the trend from the early May highs to its present position probing support near the 400 level, we can begin to understand some of the ways in which this market might play out a type of capitulatory purge that may well represent the impetus for a consensus lean necessary to mark out conditions consistent with a cycle low scenario.

The idea here is about constructing a reasonable hypothesis about a broad psychological “give up” point. In other words, what would this market have to do to make current “fast money” longs jump ship and give up?

It may well be that this is exactly what is necessary to exacerbate the downside enough to mark out a capitulatory low that could be highly valuable as an entry point for prospective bulls waiting in the wings.

Based on the image above, we can see a trend line that connects the lows from 2017 during the summer with the lows logged in late March and early April. The simultaneous break below this trend line, that would no doubt also represent a break underneath the critical $400 level, might well force current holders of this coin to capitulate and throw in the towel, thus exacerbating the downside movement to a point beyond its natural inflection level.

If we see such a market event, and if it comes on above-average volume over the course of several days, one should be watching this coin closely for an immediate snapback or rebound that suggests that the overshooting dynamic has blossomed and played out, thus creating the potential for a patiently earned low-risk speculative entry point with a fixed point of risk at the lows of the capitulatory spike.

Bitcoin Cash (BCH)

Price Analysis:

  • High: $706
  • Low: $673.8
  • Major Resistance Level: $1000
  • Hourly MACD: Steady Downside Momentum

Chart courtesy of tradingview.com

Bitcoin Cash (BCH) is actually in a very similar technical posture to Ethereum (ETH). In this case, with BCH, the key level to watch is at $600.

Here as well, we see a recent and persistent downward trend from late April and early May that has led to a retest of lows logged right around the end of the first fiscal quarter. To further highlight the similarities, there is an important trend line in play here as well, but this one has already been broken, suggesting this decline is in a more advanced phase.

While the correlations between the two, and between both of these and the larger cryptocurrency complex, are clearly dramatic and profound, the fundamental precepts of technical analysis suggest that that’s no excuse for diligent study of the action on the chart.

We often see dynamics that may be explained away by larger asset class phenomena, but that also contain important nuances. And in the case of these coins, the inherent volatility within their localized patterns is great enough that any edge can produce enormous and even game-changing differences for traders positioning themselves here.

However, with Bitcoin Cash (BCH) – as with Ethereum (ETH) – the trend remains to the downside suggesting the importance of an opportunistic and patient approach. This implies the importance of watching for overly dramatic movement to assign some degree of probability to an opportunity to play countertrend.

In this case, one may be wise to wait for a new all-time lows print on oscillators such as the 14-day RSI, confirming the sense that the extremes of selling represent an aberration from typical statistical assumptions.

Happy Trading!!

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pexels

Charts courtesy of tradingview.com

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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