by Jamie Holmes
Every week, BTCManager provides a cryptocurrency market outlook, highlighting the best opportunities in the largest cryptocurrencies, such as bitcoin, ether, and others.
Bitcoin broke a key fractal resistance last week, moving above the $778.85 level, and now looks to establish fresh highs above $800. The chart below shows the weekly price action for BTC-USD and has broken above the Fibonacci level at $778.85, so we should see bitcoin tend towards the Fibonacci extension level at $991.35 over the long run.
The daily chart below shows that BTC-USD needs to establish a daily close above $793.27 to confirm further bullish momentum over the short run. A daily close above this fractal sell level will open up the $800 handle and see bitcoin push higher towards the long-term target of $991.35. A dip back below $778.85 will indicate a shift in momentum in favor of bears in the market.
After breaking support at $8.11, ETH-USD posted a fresh low around $7.50 and has since seen limited price action. The chart below shows the critical support and resistance levels that market participants should pay attention to. A break below the fractal buy level at $7.50347 will foretell of further depreciation in ETH-USD, whereas we look for a break above $8.89 for the resumption of bullish momentum.
However, notice that the conversion line has crossed above the base line, signalling bullish momentum but both lines remain horizontal, suggesting ETH-USD will gyrate around the $8.00 handle. We should look for the conversion line to start trending to predict where Ether will head next.
Monero made strong gains last week and, as the chart below displays, XMR-USD managed to close above the base line, breaking resistance at $8.265. Now that the market has confirmed a break of the resistance provided by the base line, we should see upward momentum take hold in the weeks ahead. Immediate resistance lies at $9.379 and a break above this level will open up the next key resistance, the all-time high at $15.249. On the other hand, a weekly close below $8.265 will point to a bearish outlook over the long run.
Our target for ETC-USD at $1.20 has been realized, but where will Ethereum Classic’s token head next? In our previous cryptocurrency report, we highlighted that the downward trend for ETC-USD was reversing and anticipated a move back above $1.00 to $1.20, illustrated below.
The current outlook for ETC-USD is displayed below and the new week of price action has seen a fractal support level established just above $0.70. Also, the close of the previous week’s price action was at $1.04, above the resistance provided by the conversion line (blue) at $0.9617. Therefore, this provides a long-term bullish signal, indicating a higher likelihood that ETC-USD will continue trending higher.
The next resistance lies at the 50 percent level of the bullish Marubozu, indicated on the chart below, at $1.415. A break above this level will expose the $2.00 psychological level. Finally, notice that the conversion line is starting to display an upward gradient, foretelling further gains.
DASH regains the psychological $10.00 handle this week and looks to establish further gains. However, as shown below, the market is very close to a key resistance level, which lies at $10.9706 (the base line.) Nevertheless, two bullish signals are given with the price action now trading above the Ichimoku cloud and with a close above the conversion line o December 18, providing an indication more gains will be realized.
The daily chart below shows that the move higher is supported by higher volume and DASH-USD is making a bullish breakout from the Ichimoku cloud. Therefore, a good initial target for buy positions is $12.00, a previous fractal resistance from October 2016. However, if the market does not manage to sustain above $10.54, fractal resistance from November 2016, then downward momentum may start to dominate.
Factom’s cryptocurrency, FCT, has soared in value over the past few days on the release of its next version of its blockchain, the Factom Federation network. The chart below shows the daily price action for FCT-BTC and shows that the uptrend may only just be getting started. The market has broke above the Ichimoku cloud on December 19, which signals more appreciation is to be anticipated.
Several bullish indications are provided; firstly, the Ichimoku cloud has changed color from red to green, providing a strong buy signal. Secondly, notice the near vertical movement of the conversion line over the past few days, indicating strong bullish momentum. Thirdly, the move higher is supported by higher volumes, with the strongest buying interest seen since early October. Finally, the Awesome Oscillator is positive and trending higher, confirming bullish momentum.
The immediate resistances are at 0.0043699 and 0.00551225, which should be easily achievable for the market given the uptick in volume and buying interest. The longer-term outlook is shown below.
The market is facing a critical resistance at 0.0042 provided by the base line. However, a fractal support looks to form at the low from two weeks ago just above 0.002. The most recent fractal resistance lies at 0.00682331, so we could see a long-term drift towards this fractal resistance. A bullish outlook will be further confirmed with a close above the base line this week, that is a close above 0.0042 at the end of December 25.
Iconomi’s token, ICN, has been one of the top performers today, gaining over 8 percent so far on the Kraken exchange, on the announcement that the ICONOMI.Index fund and Open Management Platform outline will be released December 28.
ICN-XBT is making fresh all-time highs, as shown below, with a bullish Marubozu candlestick pattern displayed on December 19. Therefore, buyers can get in on this uptrend at the 50 percent and base level of this candlestick pattern, at 0.00028 and 0.000333; a buy limit order at these levels is suggested.
In our previous cryptocurrency report, we highlighted two buy zones for STR-USD and it seems that the bullish momentum is still dominating following the news that Stellar will expand its international financial network. Our buy limit order, shown below, was triggered at 0.00209131 at the 50 percent level of the bullish Marubozu.
As shown below, the market respected this 50 percent level and has since pushed higher above the Ichimoku cloud, suggesting buyers remain in control. Therefore, we anticipate a continuation of the upward trend, moving towards fractal resistance at 0.0035540.
Several bullish indications are given by the Ichimoku chart above. Firstly, the lagging line (purple) has moved from below to above the Ichimoku cloud, confirming a longer-term uptrend is in play. Secondly, upward momentum is anticipated as the conversion line (blue) is trending higher than the base line (red.) Finally, the Ichimoku cloud projected forward is green and suggests an equilibrium price of 0.0026 for January 2017, which should provide a critical support zone going forward.