Crypto update
It is September 20th, 2018
BTC dominance is currently at 55.4% (+0.4%). The total market cap is currently at $200 billion (+ $0.2 billion). The market cap of the last 24h was $12.4 billion (- $0.6 billion).
Manipulators are back?
They are always there and waiting for best moment to take action! In yesterday's post, we mentioned 2 short targets (low bollinger band H4 (6180) and low boolinger band D1 (5850). The first target was reached and if you were in trade, it was nice profit for you! After first target was reached, it dropped $130 more and then big bounce off did happen. If you were short and didn't close some part of the position or whole position after $300 drop, you were nothing but greedy! Now we have daily candle that is not going to help us too much to identify next move! In technical section below we will try to give you our opinion based on other time frames and indicators that we are using!
Fundamental analysis
Japanese Cryptocurrency Exchange Hacked, $59 Million in Losses Reported
https://cointelegraph.com/news/japanese-cryptocurrency-exchange-hacked-59-million-in-losses-reported
NY Crypto Exchange Report Bearish for Bitcoin ETF Plans
https://www.ccn.com/ny-crypto-exchange-report-bearish-for-bitcoin-etf-plans/
Summer Is Ending: Will Ethereum’s ERC-20 Pass the Governance to ERC-777?
https://cointelegraph.com/news/summer-is-ending-will-ethereums-erc-20-pass-the-governance-to-erc-777
Technical analysis
Daily time frame : https://www.tradingview.com/x/kLQvwwpw/
It tested all 3 EMAs ( EMA 8,13 and 21) and mid bollinger band but got rejected and closed below all 4 lines! If you remeber our post from yesterday, as long as we are below EMA 8, we are very bearish! If we close above EMA 21, we can starti thinking of longs with target on EMA 50. In area between EMA 8 and EMA 21 we have no trade zone for swings and only scalps are recommended!
H4 time frame : https://www.tradingview.com/x/Fbx98UKN/
On this chart you can see everything clearly! The price is currently above mid bollinger but still rejected by EMA 50. For long entry, we need close above EMA 50 and we need to search for long trigger on pullback!
For short entries, we need to wait for close below mid bollinger band and to look for triggers on pullback! Another area to look for short is top bollinger band! If it makes shadow but not the close above top bollinger band, it is time to think of shorting!
Long/Short ratio : http://prntscr.com/kwhu67
While others are talking only about big number of short on Bitfinex but they forgot main margin exchange, Bitmex! If you check this screenshot, you will see that the number of short/long is almost the same!
The buy/sell walls are same too! Not only in +$100/-$100 from current price but also +$1000/-$1000. So, currently we may see both directions and that's why we mentioned both possible situation! Now it is time to wait for triggers and enter the trade!
Note: Check out this chart: https://www.tradingview.com/x/reevEFOM
We do not have actual trend so entering the trade is not suggested! The fakeouts, bounce offs are possible and in case of volume manipulation you can end up in loss even if you have stop loss in profit! Our team is waiting for breakout from this channel to enter the trade! We will look for triggers on top/bottom of the channel but entering the trading in the middle of the channel could be extremelly risky! When it is no trade zone, take a break and do something else that will be useful! You do not need to trade every single day! The goal is to make profit, not to open a trade! If risk of making the profit is bigger than the reward, I'll rather skip the trade and wait for another opportunity!
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To your success, CS Team!