The Token Fund
Analytics by TRADINGENE
23 January 2018 15:33


January wasn’t the best month for bitcoin and other cryptocurrencies. However, right now there are some signals which imply the possible end of falling. On 18th January an extremely strong candle pattern formed. Hammer was accompanied by a volume spike and low smoothed 14-day %R indicators. Combination of such signals hints on potential increase in the nearest time. It’s most likely that price will reach 16k USD (more likely at the beginning or at the middle of the next week) before it continues its’ movement to 9k USD support level. After such retracement we can imply that trend has returned to sustainable state and is ready for further growth.


Situation with ethereum is quite similar to bitcoin except the level of %R. In this case it’s falling, what makes price signal more doubtful. Beside price trend channel is much wider here than in bitcoin case, so there is more potential for fall. I wouldn’t exclude the correction till $750 in a couple of weeks ahead. On the other hand, if we scale in we see nice progression of higher peaks and troughs and a low %R. These are quite nice signals for further growth. To sum up, I’d say that if key level of $1000 and $950 will be broken then $750 seems to be a realistic price target.


Litecoin price dynamics is much more interesting than BTC and ETH. Here we observe a stable volume reduction accompanied by following price. Such behavior implies that investors still don’t find LTC price to be attractive enough and no accumulation process is taking place. With this in mind even such a strong candle pattern like hammer doesn’t have much predictive power. As a result I think correction to $145 or even to $95 is possible.


Ripple doesn’t resemble any cryptocurrency lately. This market was extremely volatile with chaotic volumes and vast intraday swings. It’s incredibly hard to work with such inputs data and make a mid-term forecast. We have only one support level 0.85 and nothing more to work with. We see a couple of days with a really big volume but in these cases it’s most likely due to low volume during other days. In such situations it’s always better to stay aside and wait for any king of confirmations of signals in order to enter a position. If position is already opened, I would recommend to postpone closing decisions as well.


Bitcoin cash right now is one of the clearest instruments from technical analysis perspective. We have a candle pattern close to support level and trend channel (it worth mentioning that upward trend channel based on two relative highs is much weaker than the one based on two relative lows). Such dynamics forces us to enter long position with stop just below hammer’s low. At the same time decrease in volume raises some questions. In this situation I would suggest stable position accumulation with a clear and defined stop.