Sunday Market Analysis: 20/10 Cryptocurrency and Traditional Markets

Posted by John Kelvin on Oct 20, 2019 9:11:53 PM

 

SundayMarketAnalysis

Cryptocurrency Market Analysis

The Bulls are defending the trend!!! For the Bulls, it is now or never.

The cryptocurrency market prices are seeing some signs of recovery. But the question on the mind of traders still remains, Is this the Bottom?

Halvin date

As the BTC halving nears, traders are anticipating that the price of BTC will explode, breaking the all-time high. But what is currently happening in the charts, and what should we all expect this week?

The volatility has consistently declined, leading to a long consolidation. The near resistance is pegged at the support level of the descending triangle, which will turn to resistance (resistance turning to support and support turning to resistance). An upcoming trading decision can be established using Ichimoku Cloud, Moving Average, Williams %R and Volume Profile.

BITCOIN (BTC) Price Analysis

BTCUSD TK BEARISH CROSS
 

On the weekly time frame chart, using Ichimoku Cloud, there are four key metrics: the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan which is T (blue MA) and Kijun which is K (red MA) cross, and the Lagging Span (green MA).

The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa. When the T crosses the K from the up side to the down side above the cloud, and the lagging span is below the price and cloud, this signals a bearish move. Currently the T&K are crossing, but the crossing still needs to happen before a clear confirmation. If this bearish crossing is completed, price will likely drop down to a near support of $5914.

ETHEREUM (ETH) Price Analysis

ETH LONG WEGDE

 

ETH has been consolidating, and consistently holding its down-sloping supports and resistance levels. Today, the 20th of October 2019, marked the 154th day of price consolidating inside the falling wedge. Volume plays an important role here; it trends downward 75% of the time until the breakout. The breakout can be in any direction, but is upward 68% of the time. The pattern can be confirmed when the price closes outside the downsloping resistance of the trendlines. Technicals suggest that the break of the resistance will push the ETH price to test $240 to $370.

CHAINLINK (LINK) Price Analysis

linkusd channel

 

LINKUSD has continued to show signs of bullish continuation to the upside as it breaks out from the descending channel spotted on the 4-hour time frame. The descending channel found on the 4-hour chart of LINKUSD clearly shows how price has continued to hug the down-sloping resistance calling for a breakout. This breakout, and the close of the candlestick above the resistance, gives more signs of a continuation in price to the upside. Technicals suggest a continuation to the upside to hit an ultimate target of the near all-time-high of $3.

ETHBTC Price Analysis

ETHBTC NOBE

 

The breakdown from the rising wedge initiates the start of a near short position to test nearest support. The price of ETHBTC has two different bearish plays making this move valid: the bearish divergence and the Rising wedge. These two work together, as they give traders more confidence in a bearish reversal.

The rising wedge is the inverse of the falling wedge chart pattern, but most importantly the pattern confirms as a valid one when the price closes below the support trendlines.

Technicals suggest a continuation to the downside, as price has broken the support, with a target of 0.019872sats.

Traditional Market Analysis

After the bullish price moves of the majority of the traditional markets, prices are beginning to take another shape. What is happening as the market has opened?

EURUSD Price Analysis

eurusd kijun

 

Using the Ichimoku Cloud to analyze the possible market trend, there are four key metrics: the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan which is T (blue MA) and Kijun which is K (red MA) cross, and the Lagging Span (green MA). The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa. When the price is far away from the Kijun (K) and the Kijun (K) continues to go flat, this is called the C-clamp of TK disequilibrium.

In this case, the price will likely pull back to test the flat kijun or retrace half way to the kijun. Technicals suggest that the price is far from the kijun and calling for a pull back down to around $1.11163.

US500 Price Analysis

SP500 NEW CHART

 

Last week's move was fueled by the following news:

  • The ECB announced more QE and reduced capital constraints on foreign banks.
  • The Fed also reduced capital requirements on banks and initiated QE of $60 billion in monthly treasury purchases.
  • The Fed is cutting rates as concerns over economic growth remain.
  • A “Brexit Deal” has been reached. (Just don’t read the subtext that says it likely won’t pass Parliament.)
  • Trump, as expected, caved in to China and set up an exit from the “trade deal” nightmare he got himself into.
  • Economic data is improving on a comparative basis in the short-term.

Despite all this news, the price of US500 is close to the all-time-high resistance, which at this point, we call The Point of Decision. Technicals suggest a retest of the $3000 price this week before a potential break.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. Traders should always make sure they carry out their own research before buying any idea given. The views expressed in this article are the author’s and may not represent the views of EMX.

Topics: Trading Ideas, Market Review