Bitcoin Gold Price Technical Analysis – BTG/USD Preparing for Next Break

Key Points

  • Bitcoin gold price has recovered well from the $205 support zone against the US Dollar.
  • There is a contracting triangle forming with current resistance at $255 on the hourly chart of BTG/USD (data feed from Bitfinex).
  • The pair might make the next move soon either above $255 or below $235 in the near term.

Bitcoin gold price is moving nicely above $200 against the US Dollar. BTG/USD is now preparing for the next break with resistance at $255.

Bitcoin Gold Price Resistance

Recently, we saw a declining pattern in bitcoin gold price from the $300 swing high against the US Dollar. The price traded below the $280 and $250 support levels and moved closer to the $200 handle. A low was formed at $207 from where the price started an upside recovery. It has moved above the 50% Fib retracement level of the last decline from the $275 high to $207 low.

However, the price is struggling to move above the $260 resistance level. Moreover, the 61.8% Fib retracement level of the last decline from the $275 high to $207 low also prevented gains. It seems like there is a contracting triangle forming with current resistance at $255 on the hourly chart of BTG/USD. The triangle resistance at $255-260 is a major hurdle for buyers. On the positive side, the price is currently above $240 and the 100 hourly simple moving average.

Bitcoin Gold Price Technical Analysis BTG USD

On the downside, there is a connecting trend line with support at $240. Therefore, it seems like the pair is approaching a breakout either above $255 or below $235. Above $255-260, the price could trade higher towards the $300 level. On the other hand, below $235, the price could retest $200.

Looking at the technical indicators:

Hourly MACD – The MACD for BTG/USD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTG/USD is moving higher towards the 70 level.

Major Support Level – $235

Major Resistance Level – $260

 

Charts courtesy – Trading View, Bitfinex


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Bitcoin has started a new year, after defeating all bonds, stocks, gold, and assets in terms of price growth and profitability in 2017.

1,300% Annual Return

According to StockTwits, S&P 500, Dow Jones, Nasdaq, Long 20+ Year Treasuries, Gold, Emerging Markets, and Junk Bonds have all recorded yearly gains below the 35 percent mark, despite the strong performance of the US stock markets.

On the contrary, as it did in 2015 and 2016, bitcoin has surpassed the growth rate of all of the conventional assets in the traditional finance industry. After starting 2017 at $900, bitcoin price has closed the year at $13,500, recording nearly a 1,300 percent annual return.

Within the global cryptocurrency market however, bitcoin has not been the most profitable asset. Litecoin, IOTA, Ripple, Ethereum, and several others have outperformed bitcoin, with Ripple recording a staggering 333-fold yearly return.

$1,000 invested in bitcoin in early January would have earned an investor $13,000 while $1,000 invested in Ripple in the same time period would have earned an investor $330,000.

Regardless of its strong performance, the dominance index of bitcoin has declined significantly, from 90 percent to 38.3 percent. Analyst have attributed such a sharp decline in its dominance over the cryptocurrency market to the cryptocurrency’s high transaction fees, which increased to $20 per median-size transaction in December.

Stil, relative to other assets and currencies in the finance sector and global economy, bitcoin has recorded a strong return for investors.

2018: Big Year For Bitcoin

In December 2017, Bitfury vice chairman and prominent bitcoin investor George Kikvadze noted that the $10,000 mark was a psychological threshold for bitcoin investors and once that was passed, anything was possible thereafter.

Billionaire investor Mike Novogratz reaffirmed his target of $50,000 and has publicly stated that he is confident the market valuation of bitcoin would surpass a trillion dollars by the end of 2018. Investors also expect innovative scaling solutions to be integrated into the Bitcoin network to reduce transaction fees, which would drastically improve its usability and adoption.

“Bitcoin could be at $40,000 at the end of 2018. It easily could. What’s different about these coins than other commodities … there is no supply response here. So it’s a speculator’s dream in that as buying happens there’s no new supply response that comes up. So every price move gets exaggerated. It’s going to get exaggerated on the way up,” said Novogratz.

As NewsBTC previously reported, large-scale financial institutions such as the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE) plan to provide regulated investment vehicles for institutional investors and retail traders. Most recently, NYSE and CBOE filed for six bitcoin exchange-traded funds (ETFs) to the US Securities and Exchange Commission (SEC).

Interesting price formation as we usher in the New Year. To begin with, a DASH Evening Star pattern is clear in the weekly chart and even though we expect short term buy pressure, the higher time frame pattern shall take precedence in our analysis.

Besides DASH, we can see buy pressure building up in LTC–where there’s a bull divergence pattern, Monero and to some degree IOTA.

AFTER CLEARING $1.1, WHAT’S NEXT FOR NEM?

NEM bears after $1.1?
XEMUSD 4HR Chart for January 1, 2018

So, after stringing some impressive higher highs and NEM closing the year with a strike at $1.1, nothing could be better for buyers.

We have this strong buy signal in the weekly chart encouraging buyers to continue ramping up their long positions. In line with this, buyers should be doing the same in our entry chart. It’s a no brainer really.

Now, in light of this and the weekly candlestick characteristic, it’s better to wait for a retracement before going long because last week’s candlestick ended up closing above the upper BB.

Before that, the upper limit or the minor resistance trend line of the current ascending wedge shall be a minor trigger.

DASH EVENING STAR PATTERN IN THE WEEKLY CHART

DASH Evening Star Pattern
DASHUSD 4HR Chart for January 1, 2018

Before last week’s close, DASH had closed as an inverted hammer complete with that long signature upper wick and sellers expected a confirmation of that bear pressure.

Well, sells were confirmed and prices are back and trending within the BB. Because of last week bear candlestick, a 3-bar reversal pattern called the Evening star pattern was completed and sellers were also gifted with a stochastic sell signal turning from deep the overbought territory.

The combination of these three patterns mean one thing: Loading up sells. However, there is no need of excitement now.

For obvious reasons of course! As it is, its better to wait for a stochastic sell signal. Ideally, this should happen at around the minor resistance trend line or at around $1200.

IOTA BUYERS MAY PUSH PRICES TO $5

IOTA buyers aim at $5
IOTUSD 4HR Chart for January 1, 2018

Despite persistent lower lows in the last three weeks, IOTA sellers didn’t manage to push prices below $3.3 main support.

In fact as we can see, prices actually rebounded from that level after that stochastic buy signal on December 31.

As it is, the minor resistance trend line no longer holds. In line with this break through, should there be more buy pressure, immediate take profit lies at $5.

Coincidentally, that is where we expect sell pressure to jump in the fray and drive prices lower.

MONERO PRICES MIGHT TOUCH $400 THIS WEEK

Monero buyers may push for $400 this week
XMRUSD 4HR Chart for January 1, 2018

In our entry chart, there is a stochastic buy signal. Furthermore, from our entry chart, Monero higher highs are pushing towards last week’s highs of $400.

This is encouraging to buyers. You see, after last week’s doji candlestick, buyers are now getting their grind back.

Despite the higher highs, I recommend short term buying and liquidation at around $400 especially if there is a bear reversal pattern or a stochastic sell signal forms.

LTC BULL DIVERGENCE MEANS LOADING LTC BUYS

LTC bull divergence in the 4HR chart
LTCUSD 4HR Chart for January 1, 2018

Like everything in nature, nothing continues on in perpetuity. LTC buys or sells is no exception. Interestingly-and painful for buyers, LTC prices appreciated to as high as $400. However, at current prices its value is about 50% less than it was 3 weeks ago.

That’s how volatile price action has been. Well, there is a ray of hope at least from my technical point of view. From price action, we expect buy pressure after that bounce from $200. Furthermore, there is a bull divergence pattern and a buy signal in place.

Judging from the chart, the current bull candlestick might push prices above the middle BB. If it does, it definitely trigger buy pressure and that’s why I recommend buying.

All charts courtesy of Trading View

 

Key Highlights

  • Ripple price corrected lower recently and it tested the $1.50 support area against the US Dollar.
  • There is a major bullish trend line forming with support at $1.8000 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair might resume its upside soon once it succeeds in breaking the $2.00 resistance area.

Ripple price is currently correcting lower against the US Dollar and Bitcoin. XRP/USD remains well supported on the downside near $1.80 and $1.70.

Ripple Price Support

After a solid upside move, Ripple price faced a strong resistance at $2.45 against the US Dollar. The price started a downside correction and moved below the $2.00 and $1.80 support levels. It traded close to the $1.50 level and formed a low as $1.5962. Later, it found bids and started an upside move above $1.60. XRP succeeded in moving above the 23.6% Fib retracement level of the last decline from the $1.2480 high to $1.5962 low.

The last downside move was protected by a major support at $1.60 and the 100 hourly simple moving average. Moreover, a major bullish trend line with support at $1.8000 on the hourly chart of the XRP/USD pair also acted as a barrier for sellers. The pair is now above the $1.80 level, but it struggled to break the $2.00 level. Moreover, the 50% Fib retracement level of the last decline from the $1.2480 high to $1.5962 low is also acting as a resistance. Once the price breaks $2.00 and settles above the stated level, there can be more gains in the near term.

Ripple Price Technical Analysis XRP USD

On the downside, the $1.8000 support area is very important. Furthermore, the $1.7000 level and the 100 hourly SMA are also decent buy zones.

Looking at the technical indicators:

Hourly MACD – The MACD for XRP/USD is slightly placed in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is moving lower towards the 50 level.

Major Support Level – $1.8000

Major Resistance Level – $2.0000

 

Charts courtesy – Trading View, Kraken

Key Highlights

  • ETH price is moving nicely above the $700 support and the 100 hourly simple moving average.
  • There is a new connecting bearish trend line forming with resistance at $738 on the hourly chart of ETH/USD (data feed via SimpleFX).
  • The pair is also forming a major horizontal support above the $665 level.

Ethereum price is struggling to move higher against the US Dollar and Bitcoin. ETH/USD needs to break $738-740 to gain upside momentum.

Ethereum Price Resistance

There was a nice upside move in ETH price on a couple of occasions against the US Dollar. The price traded towards the $740 and $750 levels, but failed to gain momentum above the mentioned levels. Recently, it traded as high as $740.99 and is currently moving lower. A new connecting bearish trend line with resistance at $738 on the hourly chart of ETH/USD prevented gains.

The pair is now below the 23.6% Fib retracement level of the last wave from the $664.48 low to $740.99 high. It seems like the pair might continue to decline in the near term toward $710-700. However, there is a major support around 710 and the 100 hourly simple moving average. The same $710 support is also around the 38.2% Fib retracement level of the last wave from the $664.48 low to $740.99 high.

Ethereum Price Technical Analysis ETH USD

If the pair fails to hold the $710 support and the 100 hourly SMA, then there are chances of it testing the $700 handle. Moreover, the 50% Fib retracement level of the last wave from the $664.48 low to $740.99 high is around $702. The most important support on the downside is around the $665, which held declines on many occasions.

Hourly MACD – The MACD is currently moving nicely in the bullish zone.

Hourly RSI – The RSI is currently moving lower toward the 50 level and it seems to be showing a few bearish signs.

Major Support Level – $710

Major Resistance Level – $738

 

Charts courtesy – SimpleFX

Key Points

  • Bitcoin cash price is preparing for the next move with support on the downside at $2300 against the US Dollar.
  • There is a crucial bearish trend line forming with current resistance at $2400 on the hourly chart of BCH/USD (data feed from Kraken).
  • The pair might soon make the next move either above $2400 or below $2300 in the near term.

Bitcoin cash price is consolidating above $2200-2300 against the US Dollar. BCH/USD may soon break higher above the $2400 resistance for more gains.

Bitcoin Cash Price Upside Hurdle

There was a downside reaction in bitcoin cash price from the $2880 swing high against the US Dollar. The price traded below the $2500 support area and moved toward $2100. A low was formed at $2145 from where the price started an upside correction. It moved above the 23.6% Fib retracement level of the last decline from the $2890 high to $2145 low. However, the price struggled to move above the $2500 resistance.

There is also a crucial bearish trend line forming with current resistance at $2400 on the hourly chart of BCH/USD. The pair seems to be struggling to move above the trend line resistance at $2400. Moreover, the 50% Fib retracement level of the last decline from the $2890 high to $2145 low also acted as a hurdle for buyers. Above, the 100 hourly simple moving average is positioned at $2400 and is acting as a hurdle. It won’t be easy for buyers to break the $2400 resistance. Once they succeed, the price could accelerate above the $2600 level in the near term.

Bitcoin Cash Price Technical Analysis BCH USD

On the downside, there is a bullish trend line with support at $2300 on the same chart. A close below $2300 could negate the possible upside move and push the price toward $2100.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now below the 50 level.

Major Support Level – $2300

Major Resistance Level – $2400

 

Charts courtesy – Trading View, Kraken