Top 5 Crypto Performers Overview: Dash, Neo, Binance Coin, EOS, Ethereum

Argentina has recently settled an export deal with Paraguay in ₿itcoin. Although the net value of the deal was only $7,100, it is a welcome step. Gradually, more countries will recognize the advantage of using cryptocurrencies for cross-border deals.

Digital asset management fund Grayscale Investments said that its institutional clients are increasingly using the current low crypto prices to make long-term investments. These inflows are largely being parked in the fund’s ₿itcoin Investment Trust.

A survey of 71 global institutional investors, conducted by market research company PollRight for the Global Blockchain Business Council (GBBC), has shown that 19 percent of the respondents believe that cryptocurrencies will be regularly invested in and traded by 2021.

Moreover, 41 percent of the respondents said that institutional investors will enter the ICO market in the next five years.

These developments confirm the growing interest of institutional investors in the crypto space. Are the top performing cryptocurrencies showing signs of bottoming out? Let’s analyze the long-term charts and try to ascertain whether they are a buy or not.

DASH/USD

The expense management app Spend.com added support for Dash, offering the users various new features.

The Dash Core Group has announced the launch of a new Dash Ventures entity, registered in the Cayman Islands. It will invest in various asset classes, reinvesting the profits back into the Dash ecosystem.

So, is it the right time to buy the cryptocurrency? Let’s see what the charts are suggesting.

The DASH/USD pair is attempting to rise from the level of $64. Although the upward move has been sluggish, one positive thing is that the cryptocurrency is consistently gaining ground.

The current recovery will face resistance at $103.261, and above it at the 20-week EMA at $109. Above these levels, the pair won’t meet major resistances until it reaches $175. Therefore, the traders can buy if the price sustains above $110.

Conversely, if the price turns around from the overhead resistance, a few more weeks of consolidation will be probable.

A break of $64 will be a negative development as it can sink the pair to $56.214. If this level breaks, the downtrend will resume. Currently, with both of the moving averages sloping down and the RSI in the negative zone, the bears appear to have an advantage.

NEO/USD

This week, NEO was the second-best performer among the top 15 cryptocurrencies by market capitalization. Although the cryptocurrency did not make any major headlines, the market participants are excited about the possible announcements during the NEO DEVCON 2019 which is taking place on Feb. 16 and 17.

The NEO/USD pair has largely been stuck in a tight range of $5.4808–$10 recently. Previously, the cryptocurrency was stuck in a range for 13 weeks, from mid-August to mid-November 2018, before a breakdown happened.

The current range-bound action is already 12 weeks old. So, if history repeats itself, we are likely to see either a breakout or a breakdown within the next couple of weeks.

The range this time is tight, so we expect the breakout to be strong. On the upside, a breakout and close above $10 will signal strength and can carry the cryptocurrency to $17.7. If that resistance is crossed, the rally can extend to $25.29.

The traders can stay on the long side of the trade, following the break out of the range. There is a minor resistance at the 20-week EMA, but we expect it to be crossed.

Conversely, if the bears sink the price below the support of the range at $5.4808, the downtrend will continue.

BNB/USD

Binance CFO Wei Zhou has said that the exchange remains profitable despite the prolonged bear market. CEO Changpeng Zhao has revealed that Binance is aiming to release a testnet version of its new decentralized exchange on Feb. 20.

Can Binance Coin (BNB) keep outperforming the market, or is it nearing a major supply zone? Let’s find out.

The BNB/USD pair is at the critical overhead resistance zone of $10–$12. This zone has proven to be a major hurdle from mid-August to early November 2018, before a breakdown happened.

Both of the moving averages are flat, and the RSI is just above the midpoint. This points to a probable consolidation. If the price turns down from the current levels, it can find support at $6, and below that at $5.5.

At the current levels, we couldn’t find any trades that would offer us a good risk to reward ratio, so we suggest traders wait for a small dip to enter long positions.

However, if the bulls scale the overhead resistance zone, a rally to $18 will ensue. Short-term traders can buy following a break out of $12 and ride the momentum higher, but should keep a tight stop loss.

EOS/USD

EOS is attempting to make a comeback. However, can the recovery continue or will the bulls take a breather and give up some of the recent gains?

The bulls are attempting to break out of the resistance of the tight range between $2.1733 and $3.2081. If successful, the EOS/USD pair can move up to $3.8723. Although the 20-week EMA is at $3.613, we expect it to be crossed.

The pair will indicate strength after it sustains above $3.8723. That will confirm that the markets have rejected the lower levels. Thereafter, the traders can expect the rally to gradually carry the digital currency to $6.8299 over the medium term.

We suggest the medium term investors wait for the price to scale above $3.8723 before initiating any long positions.

On the other hand, if the bulls fail to break out of the overhead resistance, the price will extend its stay inside the range. A break below the bottom of the range at $2.1733 will indicate weakness and can result in a retest of the yearly low at $1.55. A breakdown to new yearly lows will resume the downtrend.

ETH/USD

The average daily Ethereum (ETH) block rewards have dropped from over 20,000 in December 2018 to 13,370 on Feb. 10. The drop has happened due to the sudden increase in Ethereum’s mining difficulty.

On Feb. 25, Nasdaq will launch its ₿itcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX) to track the respective cryptocurrencies’ prices. The Enterprise Ethereum Alliance (EEA) will launch a token task force, focusing on “support for fungible ERC-20 and non-fungible, ERC-721 tokens.”

Is the cryptocurrency on a path to recovery?

The ETH/USD pair is attempting to form a higher low at $102.49. If the bulls succeed in keeping the price above this level, an attempt to break out of the overhead resistance at $167.2 will be probable. If the price sustains above $167.2, it will indicate the start of a new uptrend.

Hence, the investors can wait for a close (UTC time frame) above $167.2 to buy. The target levels to watch on the upside are $225, and above it $242.62.

Our bullish view will be invalidated if the bulls fail to break out of the overhead resistance. In such a case, the digital currency will continue to trade between $102.49 and $167.2. Any break below $102.49 will be a negative development that can sink the pair to $83. If this level breaks down, the downtrend will resume.

Published at Sun, 17 Feb 2019 19:19:00 +0000

October 31, 2017

Bitcoin Price Analysis: Signs of Divergence May Point to Potential Distribution Phase

After bouncing back and forth from $5100 to $6100, BTC-USD managed to squeeze out one more (albeit short-lived) all-time high. This article is going to present an update to the last discussion regarding the potential Wyckoff Distribution and provide a more contextualized, macro-view of the current bitcoin market. Before reading any further, I would like to emphasize the word “potential” within the context of this discussion because until the market actually reverses, this is nothing more than a potential market set-up:

Figure 1: BTC-USD, 1-HR Candles, Potential Wyckoff Distribution

When we last discussed this potential distribution pattern, we hadn’t experienced the first Upthrust (UT) or the following Upthrust After Distribution (UTAD). Both Upthrusts represent a brute-force market test of the bitcoin demand and, as you can see, the Upthrusts were very short-lived and ultimately pulled back to more comfortable price levels.

At the time of this article, we are potentially in what is known as “Phase C” of the Wyckoff distribution. Phase C is meant to intentionally deceive the bullish retail traders into buying and to shake out unconfident shorters. The whole purpose of Phase C is to create the illusion that market wishes to push upward and resume the uptrend while the larger market players unload their liquidity onto the more bullish investors. In the Wyckoff distribution model, the UTAD is the terminal shakeout opportunity and serves to test the remaining market demand before a larger correction follows.

During yesterday’s potential UTAD, one of the top contract holders on OKCoin got liquidated for a 480,000 contract position — or, in other words: $48 MILLION dollars. Yesterday’s liquidation was the largest liquidation in OKCoin history. So, if you feel as if you can’t quite get a grasp on the market and you keep getting stopped out of your positions, just know you aren’t the only one. All of this misdirection is part of Phase C within the Wyckoff distribution model.

Figure 2: BTC-USD, 12-Hour Candles, MACD and RSI Divergence

On a more macro-view, we see clear signs of bearish divergence on both the RSI and MACD indicators. This gives us an indication that the market is struggling to squeeze out new highs and the bullish momentum is starting to die down.

Zooming out, we can see bitcoin has been confined within a fairly clean ascending channel and has well-defined support and resistance along the Fibonacci Retracement set. The channel and Fib set start from the $600s:

Figure 3: BTC-USD, 1-Day Candles, Macro Channel

One thing of note in this macro trend is dramatic decline in total volume (shown in pink) over the length of this ascending channel. The decrease in total volume shows a decrease in confidence as the price continues to climb to new highs. As the volume continues to decline, it indicates a shift toward retail investor pressure and a smaller buying influence from larger, institutional investors.

If the market begins to reverse on a macro scale, we can expect to find support along the Fibonacci Retracement values shown above. Also, on the 1-day candles, there is historic support along the 50 EMA and 200 EMA. Over the course of the last year, bitcoin has yet to successfully break below the 200 EMA (shown in red), so we can expect to see a significant level of support along the 200 EMA.

With the uncertainty surrounding the upcoming hard fork, it’s fairly difficult to anticipate how the market will behave. It’s important to keep in mind that it is entirely possible it could make further moves upward; should the market pick up bullish momentum, we can expect a test of the upper trendline of the ascending channel near the lower $7000 values.

Summary:

bitcoin is continuing to show characteristics of a distribution phase.
On a macro-scale, bitcoin is signs of bullish exhaustion in the form of RSI and MACD divergence.
If the market pulls back, we can expect to see support along the macro Fibonacci Retracements.

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.

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