May 23, 2019

This Crypto Joke is a Better Investment Than Bitcoin – Seriously

By CCN: Originally created as a programmer’s practical joke, Dogecoin has defied the odds to cement its place near the top of the crypto market cap. Joke or not, however, this cryptocurrency is about to mount a serious challenge to Bitcoin, and prescient investors could yield a 185 percent windfall.

Dogecoin Flashes Wildly Bullish Signal

Through the years, one crypto trading formula that has stood the test of time is buying support while the market is oversold. The more oversold, the better.

That’s because oversold conditions provide selling relief. In other words, supply tends to dry up because the price is so low that no one’s interested in selling. Meanwhile, buyers return because the market is cheap.

You don’t have to be a rocket scientist to put two and two together. Rising demand plus low supply very often equates to a price surge

We’re seeing this dynamic happen in Dogecoin, which is currently priced at $0.00294 or 38 satoshis (0.00000038 BTC).

Dogecoin trades at strong support while close to oversold territory. | Source: TradingView

A quick look at the daily chart illustrates how Dogecoin bounced at the durable support of 35 satoshis (0.00000035 BTC) on May 13. This bounce was spurred by extreme oversold conditions. Unfortunately, the bounce was short-lived, as bottom-pickers quickly took profits.

Nevertheless, we expect the market to retest 35 satoshis (0.00000035 BTC) in the next few days and become oversold again. If Dogecoin hangs on for dear life, the race to the range high of 100 satoshis (0.00000100 BTC) would be on.

We’re confident that this cryptocurrency is likely to move bullishly – just as it did before – because it is painting a familiar pattern.

Crypto Market Psychology Points to Imminent Rally

Technical analysis is the study of human behavior through historical price action. It captures market psychology by assuming that what happened in the past is likely to happen again in the future.

We’re seeing this assumption play out in Dogecoin as it prints a possible fractal. In trading and even geometry, a fractal is a close representation of a particular structure. The patterns often share many similarities.

Dogecoin prepares to bounce against bitcoin. | Source: TradingView

In this cryptocurrency, we can see the right side of the chart imitating the price action on the left side of the chart. The left side of the chart generated four peaks before coming up with a monster rally. We can see the right side of the chart on its way to printing the fourth peak.

In addition, we can also see similarities in daily Relative Strength Index (RSI). The technical indicator had to get close to oversold territory three times before the meteoric rally on August 29, 2018. Again, we are seeing the resemblance this time around.

Bottom Line: Dogecoin Could Triple in Value Against bitcoin

Crypto investors who agree with this assessment should buy as close to 35 satoshis (0.00000035 BTC) as possible with a tight stop. Should bulls defend the support one more time, Dogecoin will likely hit our target of 100 satoshis (0.00000100 BTC) and reward us with gains of 185 percent.

And yes, at least in the short-term, that means Dogecoin is a better investment than bitcoin.

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN. This article is intended for informational purposes only and should not be considered investment advice.

Published at Thu, 23 May 2019 17:35:46 +0000

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December 16, 2018

Psychology of bitcoin market cycle

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December 22, 2017

Bitcoin Price Analysis: Expect Some Lower Lows Before the Next Bounce

Two days ago, I outlined a potential BTC-USD price breakdown due the broken hypodermic trendline. Since then, the price has dropped nearly $7,000 and is showing signs of further downward continuation. Let’s take a look at the chart from the last BTC-USD market analysis:

Figure 1: BTC-USD, 4-Hour Candles, Trend Prior to Breakdown

As you can see, the price was holding on by a thread near the red, hypodermic trendline. Once it managed to break this trend, the price immediately and aggressively dropped. Thus, the market signaled the end of the current parabolic breakout. Currently, it is finding support on the parabolic curve; but on the lower timescales, it shows signs it might take one last move downward before a proper bounce occurs. Since the hypodermic trend occurred once the market broke the linear trend, there is likely going to be very strong support there:

Figure 2: BTCU-SD, 4-Hour Candles, Hypodermic Breakdown

In the event that BTC-USD sees new lows, we can expect solid support in the upper $9900s to low $10,000s. From there we will likely see a bounce leading to a consolidation period, where the market will ultimately decide if it wants to resume the downtrend or break upwards. Given the fact that we broke out of a distribution trading range, it is likely that we will resume this down trend after any potential consolidation.

Distribution is the top of the market cycle and leads to a markdown in price once the trading range is broken. However, this is all up in the air right now and we will still have to see how bitcoin handles the next phase of consolidation. For now, I don’t anticipate any radical lows ranging beyond the linear trend support shown above.

At this point, it doesn’t appear we have reached a selling climax. Although the selling has been intense, there is nothing terribly notable on the macro view of last nights aggressive moves:

Figure 3: BTC-USD, 12-Hour Candles, Macro Volume

There was a lot of volume during last night’s moves, but there wasn’t a selling climax that would notably mark what we would expect from such a fantastic drop in price. Maybe I’ll be proven wrong, but I’m anticipating lower lows in the coming days and weeks.

Summary:

bitcoin broke down out of its hypodermic trend.
It is currently finding support on its macro parabolic trend.
Another shove downward is likely, but I believe it will lead to a bounce to a medium-term consolidation period.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

The post Bitcoin Price Analysis: Expect Some Lower Lows Before the Next Bounce appeared first on Bitcoin Magazine.

February 28, 2018

So Why Did Goldman Sachs-Backed Circle Really Buy Poloniex?

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