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Bitcoin and Ethereum Price Analysis - Flat Balls Won't Bounce

Bitcoin and Ethereum Price Analysis - Flat Balls Won't Bounce

2018-09-14 16:30:00
Nick Cawley, Strategist
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Bitcoin and Ethereum: Prices, News and Technical Analysis

  • The latest mini-rally has erased some of the recent losses, but the trend remains.
  • 2018 is dominated by a series of lower highs.

Cryptocurrency Market Needs Inflating if Bounces are to Turn to Real Rallies

As the latest dead cat bounce fades, the technical outlook for a range of cryptocurrencies remains negative. Heavy sell-offs have been met with limited buying, leaving charts riddled with lower highs, a strong negative signal. Overall the market ball needs inflating. Positive news flow of late has a very short shelf-life while negative news lingers and weighs on any upside moves. And as positive sentiment continues to leak out of the market, rebounds have become weaker, leaving holders nursing larger losses.

We cover trading sentiment and a wide range of trading techniques and analysis in our free Beginner and Advanced Trading Guides.

A look at market leader Bitcoin (BTC) – 56.1% market dominance - shows the downtrend from the start of the year firmly in place and needing to break back above the September 5 high at $7,387 to start to turn things round. And if Bitcoin does rally, then other cryptos will follow although their performance will differ across the spectrum. One slight positive on the chart is that ‘lows’ are edging higher over the last three months.

Bitcoin (BTC) Daily Price Chart (January – September 14, 2018)

Bitcoin and Ethereum Price Analysis - Flat Balls Won't Bounce

Ethereum (ETH) Back Above $200 For Now

The recent ICO-inspired crash took Ethereum back to levels last seen in July 2017 before a mini-rally took the ETH back above $200. As with Bitcoin, the chart shows a clear downtrend, again dominated by lower highs. In contrast to Bitcoin, Ethereum has not been making any ‘higher lows’ of late, leaving the technical outlook negative. A break back above the July 18 high at $515 would turn the technical picture around.

Ethereum (ETH) Daily Price Chart (October 2017 – September 14, 2018)

Bitcoin and Ethereum Price Analysis - Flat Balls Won't Bounce

Cryptocurrency articles published this week:

Bitcoin and Ethereum Price Analysis: Buyers Beware

Ethereum and Bitcoin Cash Prices Hammered Lower – Cryptos Roiled

Bitcoin and Ethereum Price Analysis Remains Negative

Cryptocurrency Sentiment and Positioning

The IG Client Sentiment Report continues to show retail are heavily long of cryptocurrencies, an overall bearish contrarian trading indicator. Note that daily and weekly moves should be monitored for shorter-term trading signals and bias changes.

Bitcoin (BTC) 79.1% long. Ethereum (ETH) 92.1% long. Bitcoin Cash (BCH) 89.5% long.

Ripple (XRP) 95.9% long. Litecoin (LTC) 91.6% long.

Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars

If you are interested in trading Bitcoin, Bitcoin Cash, Ethereum, Litecoin or Ripple we can help you begin your journey. We have an Introduction to Bitcoin Trading Guide along with a Free Demo Account so you can practice trading this volatile asset class.

What’s your opinion on the latest market crash? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at nicholas.cawley@ig.com.

--- Written by Nick Cawley, Analyst.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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