Market Update: Crypto Currencies Are Breaking Out
Another Leg Higher For Crypto Currency
With all the uncertainty in the world it is not wonder that more and more people are turning to cryptocurrency. Over the last week news has hit the market telling of Argentine Bitcoin miners using the digital token to avoid hyper-inflation, businesses around the globe flocking to blockchains on all levels (from investment to mining to ICO’s to business applications) and even central bankers talking of digitizing national currencies. Add to this the wildly inaccurate methods we have for keeping track of fiat currency and the tug-of-war between central banks and I think it becomes clear that blockchains, digital tokens and cryptocurrency is the wave of the future. And this is leading them to break out all over the market.
Bitcoin hit a new high near $4500 only a week or so ago, even in the wake of the Segwit driven hard-split of the blockchain. Bitcoin cash is still struggling with its valuation but holding strong nonetheless, Bitcoin classic has garnered support from the broader market because it survived the split unscathed and stronger than ever before. The coin has been trading and consolidating in the $4300 range with eye at moving higher. Technical indications are bullish. Support was confirmed at the $4,000 with high volume and now the coin is moving higher within the range. The indicators are also bullish and near the bottom of their ranges suggesting that there is plenty of room for BTC to move higher.
Ethereum, the next generation blockchain, is also moving higher. This coin is to BTC what a smart phone is to your grandma’s old rotary phone and able to run complex financial applications and smart contracts. It is even possible to launch new digital currencies on the ETH platform. This coin hit a high late last month and is now moving higher after a test to support. The coin has consolidated above $300 and $320, now trading above $330, with an eye at hitting near term resistance in the $340 range. The indicators are bullish suggesting the move higher will continue with targets at $360, $420 and the all time high near $420.
Litecoin, a simplified version of Bitcoin strictly intended for point to point transactions, is also on the move. This is one of the older and more well established tokens and still a bargain trading near $50. Over the past month, over the past 3 months I should say, this token has risen 1000’s of percentage points from the $5 range to $50 making millionaires in the matter of days. Over the past month it has been consolidating below the new highs and testing those highs now. The indicators remain bullish and showing some strength, a break of the stochastic RSI above the upper signal line would be a bullish signal.
What I’ve found in the few week’s I’ve been watching the crypto currency market is that they are very fluid and liquid in their movement. Candle signals, support & resistances, technical indicators and market signals are very clear and easy to follow. Binary options traders can take advantage of these moves with brokers like IQoption, BDSwiss and Ayrex. These brokers offer access to the cryptocurrency market through binary options, CFD’s and spot forex with the promise digital wallet services in the near future.