Crypto Charts Analysis #5 Update - Bitcoin , Ripple (XRP) and Monero 8th July 2017
***Disclaimer***
Please keep in mind: The risk of loss in trading can be substantial. I am not offering financial advice nor am I telling you how or what you should be trading. I will simply be applying charting techniques I have learnt over the years. If, of your own free will, you decide to trade never trade with money you cannot afford to lose and if you do trade, try to spread out your trades on multiple assets. A diverse portfolio is much better than only holding a single asset.
***End of Disclaimer***
Hi fellow Steemians, fellow investors, traders and crypto enthusiasts. Lets take a look at what is happening with the cryptocurrencies which we have identified have a certain chart pattern. Currently we have identified three candidates, a head and shoulders pattern on BTC/USD daily chart, bullish pennant on USD/XRP daily chart and a triangle on the XRM/USD daily chart. Let's see how these are evolving.
Bitcoin/US Dollar (BTC/USD) - Daily Chart - Head and Shoulders Pattern
Since the last update on BTC/USD price has remained constrained between the neckline and the resistance line. With no clear move direction, we will wait on the sidelines till the pattern plays out or fails. Will the price wait till the Segwit fork and then swing wildly in either direction? We will just have to wait and see.
Personal thoughts on the current chart
One known, but seldom followed, rule in trading is staying on the sidelines till a good entry signal is found. We are currently still waiting for this signal. You could argue that Bitcoin is on the rise and entering now would bank you a few extra hundred dollars per Bitcoin were it to rally. This is all well and true, but what if it moves down aggressively? Waiting for the right signal ensures a certain amount of calculated risk and a repeatable entry into the market. Do not rush and do not buy into FOMO (fear of missing out).
If you would like to see the initial in-depth analysis of this pattern check out my previous post Crypto Charts Analysis #1 Bitcoin 4th July 2017.
US Dollar/Ripple (USD/XRP) - Daily Chart - Bullish Pennant
USD/XRP has seen some downward movement after the squeeze seen in the last update. with yesterday's candlestick breaking the support of the ascending triangle. I still do not see a clear indication that this pattern has failed especially when seeing the low volume the downward candlestick has.
Personal thoughts on the current chart
The weekend has more often than not been slow for cryptos across the board so judging the movement on these days can be misleading. We will wait till Monday or Tuesday for a clearer indication of where it will go. Though I would say this is a slight pullback of people panicking before larger investors drive the price upward. Again keep in mind that this has not been verified yet and only price action will confirm a move either way.
If you would like to see the initial analysis of this pattern check out my previous post Crypto Charts Analysis #2 Ripple (XRP) 5th July 2017.
Monero/US Dollar (XMR/USD) - Daily Chart - Bullish Pennant
We looked at Monero just yesterday when we drew up the triangle on the chart and this morning the price bounced right off the rising edge of the triangle (marked with a yellow arrow). A more aggressive or swing trader could have entered the market at this point looking to take some or all profits off the table if the price reaches the resistance line.
Personal thoughts on the current chart
The current candlestick does show the possibility of a bounce but it is still early in the day to plan on the movement of this candlestick. Buying now would ensure more profits were it to rally upward, however, the probability of it falling given the current price action is still high. The more confirmation we have of a strong upward move is always better. If the candlesticks that precede give more bullish signals, like a close above the resistance further into the triangle, we would be able to enter the trade with much more confidence than if we were to enter now.
If you would like to see the initial analysis of this pattern check out my previous post Crypto Charts Analysis #4 Monero (XMR/USD) 7th July 2017.
So fellow Steemians, investors, traders and crypto enthusiasts what is your take on where the price of these cryptocurrencies is going? Do you agree or disagree with this analysis or do you have your take on what the chart is showing ?
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Resources
Coinigy - Online chart tools for Cryptocurrencies - Affiliate link
Coin Market Cap - Excellent resource with a loads of crypto data