Analysis – Midas.Investments. Crypto investment company blog.

Crypto Market Analysis

admin — Fri, 09 Dec 2022 06:36:45 +0000

Last week we said:

Crypto markets are showing signs of resilience despite incredibly difficult conditions. With bullish divergences for all three major crypto assets, it seems the worst is over – at least for now. Many analysts are calling for $12k (or lower) BTC, but it would take some serious catalysts to push the price lower. Especially with so many investors buying and accumulating coins. HODL and BTFD conviction remains strong. Fearful conditions persist, presenting a fantastic buying opportunity.

At the time of our last article, BTC was trading around $16.4k and ETH was at $1200. It’s been a green week for the crypto market, with BTC moving up nearly 5% to $17.2k and ETH bouncing 7% to cross $1275. BNB is down slightly, falling just 3.6% over the past 7 days.

Let’s take a look at the charts and see if the uptrend will continue!

Bitcoin Price Analysis

There is some clear bullish divergence on the 4H chart. BTC’s 50SMA has crossed over the 100 – officially entering neutral territory. This is confirmed by BTC riding above both 50 and 100 SMA’s. BTC also crossed over the 200SMA resistance at $17.1k – a major breakout point if it can hold. This is the first time BTC has risen above the 200SMA since before the FTX crash in November.

On the daily chart, BTC is still sitting below its moving averages – which remain in a bearish configuration. The RSI is now sitting in a neutral range, but Stochastic is overbought. The nearest resistance is the $18.1k zone. With the stochastic being overbought, BTC will likely retrace to support levels in the medium term.

Support at the previous consolidation zone is around the $16-16.2k mark.

Ethereum Price Analysis

On ETH’s 4H chart, we can see a similar situation to BTC. The 50 and 100 SMA lines were acting as support, which confirmed on multiple retests over the past few days. Today ETH broke through the 200SMA resistance, and a golden cross opportunity is setting up for the coming week. ETH needs to hold above $1260 resistance.

On the long term ETH chart, ETH has held up very well. The RSI is approaching neutral, but Stochastic is bouncing from oversold. This indicates that an upward grind and/or sideways consolidation is likely. ETH is trading just under the 200w SMA at $1350, which is an important resistance zone.

BNB Price Analysis

BNB has been trading along its moving averages quite nicely. We can see that after last week’s pump, BNB has fallen below all three moving averages and is confirming them as resistance on this low timeframe.The closest resistance is the 50SMA, which is priced at $291. If BNB fails to break above and hold this level, it likely retraces to previous consolidation zones in the $270 range.

On BNB’s long term chart, we can see that it has held up incredibly well compared to the rest of the market and is up significantly from its summer lows. The 50SMA crossed below the 100, signaling neutral price action, and is acting as strong resistance around the $330 mark. Long term support is at the 200w SMA – which is still rising in the bear market – priced at $191. Local support is at the $260 consolidation zone.

Market Sentiment

Despite the upward move last week, investor sentiment is still at an extreme fear. This signals that it remains a good time to DCA into long term positions.

Conclusion

While the worst of the crypto winter is likely over, it will take some time for the machine to kick back into gear. Sideways consolidation and market chop is the most likely scenario for the next several months as the market recovers and normalizes. BTC and ETH have strong supports underneath them, but also strong resistance headwinds not far above. The declining hash rate signifies that miner capitulation has already occurred to some extent and is likely priced in. BTC would need to move much lower or stay in this price range for significantly longer in order to force more capitulation. The low sentiment and near-bottom prices make this a good time to build long term bags.

NFA. DYOR.

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Crypto Market Analysis

admin — Wed, 30 Nov 2022 08:39:19 +0000

Last week we said:

This is a brutal time for the crypto market. Contagion is spreading from the FTX failure and sentiment is extremely fearful. However, from a technical perspective it seems that the market is close to a bottom, so averaging into new positions here seems to be a good risk:reward. Still, do so with extreme caution and not with more money than you can afford to lose.

It’s actually been a green week in the crypto markets despite the low morale of investors. At the time of publishing, BTC is trading around $16.4k and is up 3.7% from 7 days ago, ETH is sitting just over $1200 and is up 9% on the week, and BNB crossed $300 and is up a whopping 18% since last week. Could such a strong bounce after capitulation signal that the bottom is in?

Let’s take a look at the charts.

Bitcoin Price Analysis

BTC is showing some bullish divergence on the 4H chart, as the price has crossed above the 50SMA and held it as support upon multiple retests. This support level is currently being tested at $16.35k. We can also see that BTC has been moving in a tightening range, trading between the 50SMA support and 100SMA resistance. This resistance is currently priced at $16.5k. Above this, the 200SMA is much higher at $18.1k.

On the daily chart, BTC is still sitting well below all moving averages. From a momentum perspective, the RSI is now in neutral territory – but the Stochastic is now overbought. This could signal that bullish momentum may stall in the medium-term and BTC may continue to consolidate in this lower range.

BTC’s long term chart is showing signs of being oversold – signaling that downward momentum is likely over. The RSI is oversold and Stochastic has reached the bottom of its range. This is similar to its chart from June – which led to months of sideways consolidation. The nearest moving average is the weekly 300 SMA, which will act as resistance, priced at $18.1k.

Ethereum Price Analysis

ETH is showing similar bullish divergences to BTC, but slightly stronger. Here on ETH’s 4H chart, ETH has broken above both 50 and 100SMA’s, and is now retesting the 100SMA as support. The 100SMA is priced just under $1200. Above this is the 200SMA at $1350.

On ETH’s long term chart, the asset is looking very strong. Holding higher lows from the summer, trading just below the 200SMA, and an oversold Stochastic bode well for ETH in the coming weeks. There is support at $1200, $1k, and $880, and resistance at $1350 (200SMA).

BNB Price Analysis

BNB is looking like the strongest crypto asset recently. Its price has rocketed through all local resistances (50, 100, and 200 SMA’s), and is now testing the 200SMA as support at $300. Holding this support would be a classic resistance turned support bullish flip, and sets up a golden cross opportunity in the coming days/weeks. Below the $300 support is the 50SMA at $292.

BNB has held well above its weekly 200SMA throughout the bear market, showing incredible relative strength when compared to other crypto assets. Its RSI remains neutral despite the uptrend, and we can see that the 50SMA is acting as resistance – currently priced at $335.

Market Sentiment

The FGI is still very fearful, but is sitting one point out of the “extreme fear” range. This comes despite analysts calling for $12k or lower, and major uncertainty surrounding continued FTX fallout, GBTC and WBTC worries, and regulation risk.

Fundamental Analysis

Glassnode reported this week that small-to-medium BTC investors (up to 10BTC) have increased their on-chain holdings by nearly 300k BTC over the past month since the FTX fallout. This shows that investor confidence in the sector remains very strong, people are buying the dip, and decentralization is increasing – all positive signals.

The chart above shows that BTC’s hash rate has declined by about 15% following the recent sell off. This comes as Bitcoin mining companies are forced to turn off their mining machines. It also comes as Glassnode reports miners selling BTC from their treasuries to cover costs. While a lower hash rate is not good for BTC in the long term, it means that the miner capitulation risk has already occurred and is priced in.

Conclusion

NFA. DYOR.

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Crypto Market Analysis

admin — Tue, 15 Nov 2022 07:35:43 +0000

It’s been crypto’s worst week since mid-June amid the fallout of FTX’s insolvency and the resulting contagion that is now spreading through the industry. BTC has dumped mercilessly to a new market low of $15.8k, falling through all support levels as fear moved to extreme levels.

As the dust settles and traders lick their wounds, let’s look at the charts and see what indicators are saying.

On BTC’s first plunge down, it bottomed as the RSI hit extreme oversold levels. There is also a clear double-bottom pattern on the chart above. However, BTC’s RSI has been trending upward even though the price is sideways – meaning room is clearing for BTC to dip further. Local support is at the double bottom, priced at $15.8k. Resistance is now around the $17k mark.

It’s a similar story on nearly all timeframes for BTC. Bearish price action and oversold momentum indicators. Here the RSI is up slightly but is still near oversold, and Stochastic is at the bottom of its range. This means that some sideways consolidation at this new price level is likely.

BTC is trading at its lowest level in over two years. Currently, resistance on the weekly is the prior low of $17.6k hit in June. The RSI is sitting near oversold, but Stochastic is on its way down – indicating either further downside or a long period of consolidation at this price level. Lower supports are at $13-14k where BTC hit resistance in June of 2019 (more than three years ago).

Ethereum Price Analysis

ETH rejected off its daily 200SMA last week – leading to a bearish sell-off. After bouncing with an oversold RSI, ETH has been consolidating in the same zone that it was throughout most of October ($1200-1300). ETH is showing strength relative to BTC, which is at its lowest point in years.

ETH’s RSI has been flat, and Stochastic is trending down – a symptom of sideways consolidation. We can see that ETH just closed a candle beneath its weekly 200SMA. This will be an important resistance for ETH to recover- priced at $1330. In this chart, we can see that ETH is trading well above its summer lows of around $850 – further indicating its strength relative to the rest of the market.

ETH’s relative strength can be attributed to its radical shift in emissions. In the 60 days since the merge, ETH’s total supply has actually decreased by over 5700 ETH. While this may not sound like much, the old emission model would have added over 700k new ETH in the same time period. This is over $1B worth of ETH that has not hit the market in the last 60 days – a massive decrease in selling pressure.

BNB Price Analysis

It’s been an even more turbulent week for BNB, as CZ is near the heart of the crypto drama. BNB traded as high as $360 and has declined back to its October consolidation zone around $270 – also showing relative strength in the market. Its RSI is nearing oversold and Stochastic is near the bottom of its range – indicating that it has bottomed out in the short-term. Support is at $270, and resistance is at the 50SMA ($290).

There is some bearish divergence on BNB’s weekly chart as it rejected off the 50SMA last week. This level remains a major resistance zone at $345. Both of BNB’s weekly momentum indicators are neutral as it continues to grind sideways. Support is at its summer low around $180.

Market Sentiment

Sentiment has swung back to “Extreme Fear” but a level of 24 does not capture the extremely fearful sentiment on crypto social media. With investors acting as if crypto has died completely thanks to SBF, scaling into positions at these levels seems like a good r:r.

Conclusion

It’s been a shocking week, and the insolvency/bankruptcy of FTX is perhaps the most difficult for the industry since Mt. Gox. It is impossible to say for sure if the bottom is in, but BTC is trading near levels that would historically indicate the end of the bear market is close. It could go as low as $13-14k, but those supports seem strong and holders’ resolve is also strong. The biggest unknown right now is how deep the FTX contagion goes – however, CZ’s message that Binance will help projects in a liquidity crunch brings a glimmer of hope. Trade extremely cautiously during this time.

NFA. DYOR.

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Crypto Market Analysis

admin — Mon, 07 Nov 2022 20:15:05 +0000

Last week we said:

Markets have rallied away from their lows, and bullish divergences are beginning to form on low and medium timeframe charts. BTC and ETH may be hitting resistance on daily charts, but supports are converging across timeframes. The most likely scenario is a short-term pullback to support and a continued consolidation in this new higher range to regather momentum.

Our prediction of a short-term pullback and consolidation in this higher range have proven to be correct so far. Today BTC and ETH are trading down about 2% and 4% respectively, and have retraced to the support zones identified in last week’s analysis.

Will this support hold? Let’s take a look at the charts and find out.

Bitcoin Price Analysis

After failing to break resistance near $21.5k last week, BTC has retraced to the 4H 50SMA where it is now finding support. A bounce upward from here would confirm this rising support level. There is also a clear bullish divergence here as the moving averages are all in a bullish configuration. Support below $20.7k will be found at the 4H 100 SMA, priced around $20.4k.

Moving averages on the daily chart are still bearish, but a bullish divergence can be seen as BTC has broken above the 50 and 100SMA’s. The current pullback is to confirm the 100SMA as support, priced right around $20.64k. This support converges with the 4H support we identified above. A bounce here would be a clear case of resistance – turned support, which is bullish. The next resistance is at the 200SMA, priced at just under $24k.

BTC is continuing to grind upward on the weekly chart. It needs to break above the 200w SMA, also priced at just under $24k, in order to truly regain bullish momentum. This major resistance coincides with daily resistance levels – making it a strong resistance zone. It is unlikely that this resistance will break on the first attempt – meaning the most likely outcome is a continued consolidation pattern in this zone for weeks to come as BTC gains strength.

Ethereum Price Analysis

We will focus on ETH’s daily chart and fundamentals today. ETH is consolidating between the 100SMA and 200 SMA. The 100SMA has acted as strong support around $1500 while the 200 has acted as resistance just above $1600. This is a tightening range and ETH must choose a direction in the coming days. Support below is at $1400, while resistance above is around $1900-2k ( previous high).

ETH’s supply has expanded since the merge at an extremely small pace of 0.018% per year. This means that, even at the incredibly low network usage, nearly all emissions are being burned as transaction fees. If the market regains any momentum, the increase in gas will make ETH go net deflationary. Over a long period of time, this is incredibly bullish for ETH as the supply essentially has reached a soft cap.

BNB Price Analysis

BNB has been incredibly strong in recent weeks, with daily moving averages about to form a golden cross. Clear bullish divergence is also seen, with BNB breaking all resistances including the prior high set in August. This is majorly bullish for BNB as it has been outperforming the market by a wide margin.

BNB is currently pulling back after a major run upward. The previous high of around $330 will act as support and is being tested now. Below this, the 100SMA is support at $291.

We can see from BNB’s momentum indicators that the move up caused it to become heavily overbought. The pullback to support is a healthy one, and should not be cause for concern unless BNB falls below $290.

Market Sentiment

Investors are becoming less fearful as markets range sideways. This shows a rising level of optimism, which could potentially backfire. Still, the market is more fearful than greedy at this stage. Once again the most likely outcome here is consolidation.

Conclusion

Crypto markets are in a short-term pullback to confirm higher support zones. If these zones hold, it is bullish as markets will likely then enter a pattern of consolidation in these higher zones. BNB has been strongly outperforming the market and is strong above $290. Market fundamentals continue to improve for BTC and ETH, and investor sentiment is slowly turning more positive. So long as support holds and we have no black swans, consolidation and grinding upward is likely.

NFA. DYOR.

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Crypto Market Analysis

admin — Mon, 31 Oct 2022 21:13:04 +0000

Last week we said:

From a technical perspective, bullish divergences are beginning to form on low-timeframes for all three major cryptos. The market seems to have officially switched from bearish to neutral, and sentiment has yet to catch up. On the daily chart, all three cryptos are at an inflection point as they attempt to break above local resistances. Weekly charts remain intact – especially for ETH and BNB – and look primed to consolidate sideways for several weeks to come.

The crypto markets broke through local resistance levels and pumped to the highest point in several weeks before forming a new consolidation pattern in this new range. From a long term perspective, the market remains in a sideways consolidation range despite the upward price movement. Today we will be analyzing BTC, ETH and AVAX. Will the pump continue?

Let’s take a look at the charts and find out!

Bitcoin Price Analysis

BTC’s 4H moving averages are in a bullish configuration for the first time in months. Currently, the price is in the midst of a pullback that has touched the 50SMA as support. This support is at $20,250. If this support holds, BTC may bounce back into the $20.7k zone for continued consolidation. Below this, the 100 and 200SMA’s will act as support in the 19.6-7k zone.

BTC’s daily moving averages remain bearish, but there is bullish divergence here as the price has crossed the 50SMA resistance and moved up to the 100SMA resistance at $20.8k. Upon the first test, BTC is rejecting off of this resistance. Support at the 50SMA is priced at $19.6k, which coincides with identified support on lower timeframes.

BTC continues to range beneath the weekly 200SMA. This level is a key resistance at $23.9k. BTC will need to break above $24k and hold above the 200SMA in order to truly gain bullish momentum.

Ethereum Price Analysis

ETH’s moving averages are also firmly back in a bullish position. This pullback has not touched the 50SMA as ETH has outperformed BTC over the past week significantly. 50SMA support is priced at $1.5k. Lower supports are at $1.35k – 1.4k.

ETH has actually moved up to test the 200SMA on the daily chart and is currently retracing to the 100SMA to confirm support at $1.5k. If this level holds, it is likely that ETH will retest the 200SMA resistance near $1.7k. The most likely scenario here is that ETH consolidates in this zone before confirming a direction.

ETH has held above its 200w SMA nicely throughout the bear market, confirming it as support on multiple occasions. This support level is currently sitting just above $1.3k. Long term resistance is sitting near $2k – this was the high set in August.

AVAX Price Analysis

AVAX’s moving averages are still in a neutral position on the 4H chart, but there is clear bullish divergence as its price has rocketed through resistance zones. Current resistance on this time frame is around $20, while support at the 50SMA is priced at $17.

On the daily chart, AVAX has become heavily overbought according to momentum indicators. This means that a pullback to support zones is highly likely. The nearest support is the daily 50SMA priced at $17, which coincides with support identified on the 4H timeframe.

Market Sentiment

Investor sentiment has moved out of the “Extreme fear” category. Though still fearful, it is best to accumulate when fear is at an extreme. This is still bullish for crypto markets, as fear has already been priced in.

Conclusion

NFA. DYOR.

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Crypto Market Analysis

admin — Mon, 17 Oct 2022 16:10:21 +0000

From now on, we plan to combine our analysis of multiple coins into a single article. The goal is to provide our total market analysis for the week in one location to make things more convenient.

Today we will be looking at BTC, ETH, and BNB – the three largest non-stable assets listed on the Midas platform. Currently, BTC is trading at $19.5k, ETH at $1.33k, and BNB at $274. All three assets are virtually flat over the past 7 days after a volatile week of trading. So what comes next for the crypto market?

Let’s take a look at the charts!

Bitcoin Price Analysis

First we will take a look at BTC’s 4H candle chart to get an idea of short-term price movements. In the chart shown above, we see BTC’s 50, 100, and 200 simple moving averages (SMA). The 100SMA has actually crossed above the 200SMA – signaling that the market is currently in a “neutral” mode and has shifted out of bearish territory. Confirming this is a clear bullish divergence – BTC has broken above all moving averages and is currently trading above $19.5k.

BTC briefly broke above these averages last week but was quickly rejected. If the price manages to hold above these lines (close a candle above), it would confirm this bullish divergence. The 200SMA should act as support at $19.4k. Resistance is at prior rejection zones of $19.8k, and $20.4k.

Looking at BTC’s daily candle chart, the moving averages are still in a bearish configuration. However, BTC is facing a key test here of the 50SMA. If BTC can break through local resistance at $19.7k and hold, it will be poised to test the 100SMA resistance at $21k. The daily 200SMA resistance is much higher at $26k.

Looking at BTC’s daily momentum, it seems likely that BTC will test and break $19.7k. The RSI is neutral, and Stochastic has bottomed and is reversing from an oversold position. BTC could see a rally in the coming weeks.

BTC continues to look indecisive on the weekly. The RSI is oversold, but Stochastic has been hovering near the overbought line. BTC continues to range below its weekly 200SMA, which will act as an important resistance zone, now priced at $23.7k. The most likely scenario for the coming months is consolidation.

Ethereum Price Analysis

Ethereum’s 4H chart and moving averages are still in a bearish configuration, however there is bullish divergence as the price has broken above the 50 and 100 SMA’s to test the 200. The 200 will act as key resistance at $1350. This is a definite shift for ETH as the 100SMA has acted as resistance throughout the past few weeks. The 100 and 200 SMA can act as support now, around $1300.

Ethereum’s daily chart and momentum are still bearish, but the RSI and Stochastic are currently bouncing from near-oversold levels. ETH could test its closest resistance – the daily 50SMA – priced at $1429. This has acted as resistance since September.

ETH has shown relative strength compared to BTC throughout the bear market, as it has held above its 200w SMA. The RSI is oversold, and Stochastic has been trending down as ETH consolidates and grinds upward. This sets up ETH to test higher resistances. ETH is likely to hold above $1300 as this is major support at the 200w SMA.

BNB Price Analysis

Despite recently forming a death cross pattern on the 4H, BNB has some bullish divergence on this low-timeframe chart. BNB has recently broken above the 50sMA and held it as support on a backtest, cementing it as a support zone. This support is at $272. Resistance is higher – priced around $280.

On BNB’s daily chart, it also looks poised to test 50SMA resistance around $280. This comes as BNB’s RSI is neutral and stochastic is about to bounce. BNB could get some good momentum going if it crosses the $280 and holds above that range.

Similar to ETH, BNB has shown relative strength compared to BTC and has held above its weekly 200SMA nicely throughout the bear market. Its RSI is close to neutral (slightly oversold) and Stochastic has been grinding down as BNB consolidates. A rising price floor is bullish for BNB. Major support at its 200SMA is priced at $180, but it’s unlikely to go that low in the coming months. The resistance to break is at $350 – a local high set in August.

Market Sentiment

Despite the upward price movement and bullish divergence across the charts, crypto markets remain overly fearful. This drastically lowers the likelihood of a major price dump.

Conclusion

Charts are beginning to show bullish divergence and a move from bearish to neutrality. Market sentiment is lagging – still overly fearful. It is likely that we are entering a sideways market. There will still be ups and downs, but potentially the bottom is in for BTC, ETH, and BNB alike.

NFA. DYOR.

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Bitcoin Price Analysis

admin — Tue, 20 Sep 2022 18:32:00 +0000

Blog — Analysis

BTC has taken a beating over the past week after rejecting off of the 200W sma last week. This came after a worse-than-expected CPI reading last week set markets tumbling, and expectations of a higher rate hike in this week’s FOMC meeting. Poor macro economics continue to lead all markets lower. At time of writing, BTC is bouncing of lows in the low $18k range, reclaiming $19k and printing the largest green candle of the week. Is this a dead cat bounce, or has BTC regained some footing?

Let’s take a look at the charts and find out.

Bitcoin Price Analysis

BTC has fallen beneath all moving averages on the 4H chart, and the 50SMA rejected cleanly off the 200. Currently a death cross is forming on the 4H. The closest resistance is the 50SMA, priced at $20.1k.

This week’s bounce came as BTC hits oversold on both the RSI and Stochastic indicators. However, after hitting the $19.5k zone, the Stochastic is now overbought and RSI is trending down. Rejecting under $20k is bearish as BTC will now face local resistance at $19.5k.

BTC rejected off both the 50 and 100SMA’s last week, retracing to range lows. The $18.5k zone has been a support area for BTC over the past several months, with the $17.6k wick bottom acting as the bottom of this zone. If BTC fails to regain any footing here, it is likely to revisit the $17.6k zone. If $17.6k fails, it’s lower lows between $14-16k.

Resistance is at the 50SMA, priced at $21.4k.

The daily momentum indicators contain some bearish divergence. The last time BTC was at this price point, RSI was lower. This means that we are actually more overbought now than last time we were here, signaling a lower price floor before a bounce. RSI and Stochastic have not yet reached oversold, so we are likely to continue grinding lower.

Weekly RSI is close to oversold, but Stochastic is overbought. At a minimum, this means BTC needs several weeks to reset the Stochastic before any kind of upward move can be seen. Alternatively, BTC can dump hard from here.

It seems that BTC rejected off the 200w SMA last week, confirming this key level as resistance, priced at $23.4k. This is the first time in BTC’s history that it is consolidating under the 200W SMA.

Bitcoin Investor Sentiment

The crypto markets are back to “extreme fear” but there is a hidden bearish divergence here. When BTC was trading in this price zone back in June, sentiment was registering much lower – in the 10s or high single digits. Registering in the 20s now means that investors are less fearful at this price level than they were just a few months ago. BTC would have to make a lower low (below $17.6k) to get back to the most extreme of fearful sentiment.

Bitcoin Fundamental Analysis

Key to all markets is the FOMC decision on the 21st. If they announce another 75bp hike, it will be neutral or slightly bullish for BTC, as this is already priced in. If a 100bp hike is announced, it will be more red candles. Markets are currently predicting an 86% chance of 75bp, and 14% chance of 100bp.

Bitcon’s network hash rate has reached a new all time high. Despite miner revenues declining, the network continues to gain strength. At one point, hash rate was correlated strongly with the price. That correlation has seemingly broken throughout this downtrend.

Conclusion

BTC is oversold on the 4H chart, but the daily and weekly charts are looking grim. With the FOMC meeting looming and persistent inflation, macroeconomic headwinds continue to buffet BTC and other risk markets. BTC seems to have found local support around the $18.5k zone, but further consolidation and/or grinding lower is the most likely scenario for the medium term.

Support Zones:

$18.5k
$17.6k
$16k

Resistance Zones

$19.5k
$20.2k
$21.5k
$23.4k

Not investment advice. Do your own research.

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BNB Price Analysis

admin — Thu, 15 Sep 2022 11:53:42 +0000

Blog — Analysis

Today we continue our series of analyzing the price action of top-listed altcoins on the Midas platform. We will be taking a look at BNB – the third largest non-stable crypto by market cap. At time of writing, BNB is trading around $275. Despite the recent dump, BNB is still trading up about 5% over the week. Will BNB’s slow grind upward continue?

Let’s take a look at the charts.

BNB Price Analysis

BNB’s daily moving averages have switched into the neutral configuration, with the 50SMA rising above the 100. BNB attempted to form bullish divergence and rise above the 50 SMA this week, but was rejected. This key resistance is also in the $294 zone, which correlates with resistance we identified on the 4H chart.

Support is below at the 100SMA at $268, which also correlates with our previously identified support zone.

If BNB breaks above the daily 200SMA it could signal the start of a new bull run. This key level is at $320.

On the daily chart, BNB’s momentum looks neutral and primed for consolidation. The RSI is neutral but Stochastic is trending down with the sideways price action. If the $268 support area does hold, this could turn bullish as the stochastic resets.

The weekly chart looks similar to the daily. RSI is neutral and Stochastic is at the top of its range and has begun to descend. BNB needs to hold support levels and consolidate sideways to gather strength before a move upward. Key support at the weekly 200SMA has not been touched throughout the bear market. This level is at $174.

Conclusion

BNB is holding up well despite the turbulent market. It has performed better than BTC and other top alts. Moving averages are beginning to look neutral, but sideways consolidation is needed to gather strength. It is important for BNB to hold above the support zone of $268-270.

NFA. DYOR.

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Fantom FTM Price Analysis

admin — Wed, 07 Sep 2022 16:37:01 +0000

Blog — Analysis

In today’s piece we will be taking a look at FTM – the network and governance token for the Fantom blockchain. Currently FTM is trading near $.25 with a market cap of $631.8 million, and is ranked #73 on CoinGecko.

It’s been a difficult week for crypto, with BTC falling through support at $19.6k and nearing range lows set in June. This drop has rippled across the entirety of the crypto markets- sending Altcoins back to support zones, FTM included. Will FTM revert back to the low of $.20 set in June, or will a bounce here form a higher low?

Let’s take a look at the charts and find out.

Fantom Price Analysis

After forming a local top at $.41, FTM’s 4H moving averages formed a death cross and have now retraced to support zones. FTM is currently sitting just above a local support zone at $.24 which was previously an accumulation zone in July. Below this are wick bottoms at $.22 and $.20, which is our current bear market bottom. In order to regain any sort of momentum, FTM will have to break through the 4H 50SMA, which is resistance at $.27. In this current downtrend, FTM has rejected off the moving average on multiple occasions.

The RSI and Stochastic are both heavily oversold, signaling that a short-term bounce or consolidation is likely. This also signals that it is likely our support zones hold.

Moving averages on the daily actually have the 50SMA above the 100 – thanks to the local peak at $.40 in August. With FTM now trading below all moving averages, this has the potential to be a fakeout. FTM will need to rise back above the 100SMA and cross $.30 in the coming weeks in order to validate the bullish divergence. This will act as a major resistance.

RSI and Stochastic are both touching on oversold zones, signaling that a bounce in the medium term is imminent.

Lastly we look at the weekly chart to gather data from a long term perspective. Here we can see that FTM’s RSI has actually been rising despite the relatively sideways action, and Stochastic is in a downtrend. This means that in the long term, FTM is likely to retrace back to its bear market bottom as the Stochastic trends toward oversold. From there, a bounce should form a double bottom pattern.

Conclusion

FTM is sitting above a stacked support zone from $.20 – $.24. As indicators across all time frames cross the oversold threshold, bears should lose momentum and supports should hold. On the 4H and daily, we could see a bounce up to $.27, but FTM can continue to grind in the consolidation zone and test supports until the weekly momentum shifts.

Support Zones:

$.24
$.22
$.20

Resistance Zones

$.27
$.30
$.41

Not investment advice. Do your own research.

The post Fantom FTM Price Analysis appeared first on Midas.Investments. Crypto investment company blog..

Avalanche AVAX Price Analysis

admin — Wed, 31 Aug 2022 22:40:07 +0000

Blog — Analysis

In today’s piece, we will be taking a look at AVAX – the token for the Avalanche network. At time of writing AVAX is trading around $19.50 and is ranked as the 17th largest crypto with a market cap of $5.7 billion. AVAX can be staked on the Midas platform to earn a passive income up to 13.3% APY.

The last time we looked at AVAX was earlier this month on August 3. We said:

AVAX looks weak on the 4H, indecisive on the daily, and moderately oversold on the weekly. If Alt season continues, we expect AVAX to move up and test higher resistance levels around $28. If AVAX fails to break the $26 level, however, we expect it to retrace to support levels, first at $23 and then $20.

This is exactly what has happened over the past few weeks! AVAX broke the $26 resistance and tested the $28 level a week later, which failed to break. After this, AVAX retraced to the $23 support level we identified, and is now sitting just below the $20 support level – just as we predicted.

So what’s next for AVAX? Let’s take a look at the charts and find out.

AVAX Price Analysis

After falling back to support levels, the 4H chart is not looking good for AVAX. Moving averages have completed a death cross pattern – confirming the bearish price action. The closest resistance level is at the 50SMA, priced at $21, followed by stronger resistance at $24 (4H 200 SMA).

AVAX is currently sitting at local support for just under $20. Beneath here, support could be found at the $16 level, which was a previous accumulation zone in June and July.

Our short term momentum indicators are giving us a bearish signal. The RSI failed to rise above neutral and is stalling, and the Stochastic is overbought – signaling a dump to reset momentum indicators is imminent.

The daily chart also has some bearish indications. AVAX fell beneath the daily 100 SMA, and then confirmed it as resistance last week, cementing this as a resistance zone at $22.

The good news for AVAX is that on the daily timeframe, momentum is oversold. This means a bounce in the medium term is likely to test the $22 resistance that we just mentioned.

Lastly, we will look at weekly momentum for a longer term view. Here the RSI has risen slightly from oversold levels, but the Stochastic is overbought, making it likely that we see a longer period of accumulation near the lows before any significant price recovery is possible.

Conclusion

AVAX looks bearish on the 4H, bullish on the daily, and neutral / slightly bearish on the weekly. This means that we will likely see some sort of dip in the coming days, a grind upward in the coming weeks, and consolidation in the months ahead. Key support is at the $16 zone, while key resistance is near $22.

Not investment advice. Do your own research.

The post Avalanche AVAX Price Analysis appeared first on Midas.Investments. Crypto investment company blog..