Bitcoin (BTCUSD) Testing Daily Chart Upchannel Resistance

Bitcoin (BTCUSD) Weekly/Daily

Bitcoin (BTCUSD) was rejected yesterday at upchannel resistance (on the weekly and daily chart), and may see a few days of profittaking as hinted by the daily MACD histogram sliding down.  A stronger selloff could quickly coincide with the daily MACD negatively crossing.  Nevertheless, longer term bulls will take comfort in the weekly MACD still sloping strongly up.  I suspect that after the next few days of consolidation, BTCUSD bulls may try once again to reach the psychologically key 20,000 whole figure level (which BTCUSD nearly did with a rise to over 19500 last Thursday on GDAX) ahead of the highly anticipated CME Bitcoin futures launch Monday (Sunday night Chicago).  For those who haven't seen the BTCUSD price performance relative to other bubbles throughout history, or for those who are buying out of FOMO (Fear of Missing Out), take a moment to review the following chart.  

Bitcoin Tulip Bubble

 

BTCUSD (Bitcoin) Weekly Technical Analysis

 

BTCUSD (Bitcoin) Daily Technical Analysis

 

 

Ethereum (ETHUSD) Weekly/Daily

Ethereum (ETHUSD) is seeing strong profittaking today, forming what appears to be upchannel resistance (on the daily chart).  The rally yesterday to just above 700 fulfills the 300 in gains that could have been projected based on the approximate height of the ascending triangle (as calculated from the mid May low of 100 to the triangle resistance at 400), and the point of triangle breakout at 400.   After another day or so of further consolidation, ETHUSD may want to retest the same upchannel resistance at 700 especially as BTCUSD stands a decent chance of reaching for the psychologically key 20,000 whole figure level (which BTCUSD nearly did with a rise to over 19500 last Thursday on GDAX) ahead of the highly anticipated CME Bitcoin futures launch Monday (Sunday night Chicago).  The weekly and daily MACD are still sloping strongly up, suggesting bulls will continue buying on pullbacks. 

 

ETHUSD Weekly Technical Analysis

 

ETHUSD (Ethereum) Daily Technical Analysis

 

Click here for today's technical analysis on USDCAD 

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Comments

Mementoil Wed, 12/13/2017 - 08:47 Permalink

How can you possibly try to analyze cryptos?They don't adhere to any technical analysis I'm familiar with.It's as though they are in a sphere of their own.

11b40 JibjeResearch Wed, 12/13/2017 - 12:11 Permalink

I can't agree or disagree.  I have no idea if this is a bubble, and anyone who swears it is, is only spouting off a personal opinion.There has never been a currency/investment/commodity vehicle like Cryptos.  There has never been such universal ability to "invest" - ever.  Some guy in a mud hut in Africa with Internet access who has gathered up enough cash to open an account can start buying cryptos.  Cha-Ching.  Another BTC, ETH, or whatever coin, investor born.How many hundreds of millions of people around the world will want to get in?  The number will be enormous, unless the governments figure out how to shut it down.....and if they are to do that, they best do it soon.  It is one thing to burn a bunch of mostly young millennial early adopters.  It will be quite another thing for governments to destroy 100's of billions in capital from a multitude of their citizens at the behest of bankers.  People may be passive about most of what governments get away with, but when they see their investment wiped out because of government interference, their representatives will be picking up very hot telephones.

In reply to by JibjeResearch

11b40 JibjeResearch Wed, 12/13/2017 - 13:11 Permalink

My view is simple, and it applies to investing in general.  Never put in more than you can afford to lose, and do your own due dilligence.Fortunately, I FINALLY got around to the due diligence part earlier this year and started buying.  I took out my original investment, but later decided to add more and diversify among various coins.  Up 300% YTD, and not interested in selling.  If I am right, exponential growth will continue for a good long time as people all around the world begin their own crypto journey.  Of course, government interference is the main fear for the growth story, but hopefully that threat will have to have a lot of publicity in advance.  If it starts to look like that will happen, I'm out.

In reply to by JibjeResearch

Jay Wed, 12/13/2017 - 10:19 Permalink

Bitcoin rose from $0 to $.001 in it's first year which is infinite gain. Why not list that "bubble"? In 2010, it rose from .008 to .08 in 5 days for 1000% gain. Why not list that "bubble"? By July 2011 it had risen to $31. To the cane-pounding finger-wagging bubblebleaters, bitcoin has always been a bubble and will always be a bubble so the term is mostly meaningless.

GoinFawr Jay Wed, 12/13/2017 - 22:54 Permalink

Oh 'they' did call it a bubble each and every time Jay, 'they' did. And you're absolutely right it has become, like any word repeated often enough without result, meaningless; mostly. Or wishful thinking.psheh, I like your "infinity" rationalization:"Before I earned my first silver dollar I was infinitely poor. Once I earned my first silver dollar I was infinitely wealthier than I was before"

In reply to by Jay

gunzeon Wed, 12/13/2017 - 11:09 Permalink

you can expand the -ve x axis a bit and put 2013 there, just to show the rest of you picture as a big doodle !addendum: sorry to hear yo've already sold in anticipation of the bubble popping.... what ? You never even bought ? you poor bastard !