Archive for Cryptocurrencies

Is Silver the Next Bitcoin?

Peter Krauth compares silver and bitcoin and explains why he believes investors should own both.

Source: Peter Krauth for Streetwise Reports   10/26/2020 

At the risk of offending bitcoin or silver investors, I think this is a question worth asking.

I have been researching and following these assets for some time.

In my view, it’s not an either-or dilemma. You should simply own both.

I believe silver and bitcoin remain massively undervalued, and that the market fundamentals of both these assets look extremely bullish.

The point is, like bitcoin, silver goes through massive rallies. Participating in them can be very lucrative.

So let’s review the outlook for bitcoin, then draw the parallels to better understand what may lie in store for silver.

The Case for Bitcoin

Born from its modest 2009 origins in the wake of the 2008–2009 financial crisis, bitcoin has come a long way, rising dramatically in value from its early days.

Today, its influence is not only undeniable, it’s inevitable.

Consider that U.S. Fed Chair Jerome Powell recently told an IMF-hosted digital payments panel that 80% of central banks globally are exploring the issuance of a central bank digital currency (CBDC). He also said, “We do think it’s more important to get it right than to be first and getting it right means that we not only look at the potential benefits of a CBDC, but also the potential risks, and also recognize the important trade-offs that have to be thought through carefully.”

As for being first, Powell was likely responding to China’s head start, where it is already testing in select cities, and plans to launch its own digital currency later this year.

European Central Bank president Christine Lagarde also said the ECB is very seriously reviewing the creation of a digital euro.

Digital versions of traditional currencies not only mean it will be easier to create more, but also to control them more. It inevitably lends further credibility to bitcoin. As investors come to realize it can’t be inflated or controlled, and has a finite total number of units (21 million) to be mined, they will gravitate toward the highly superior alternative.

That’s why bitcoin is increasingly seen as a safe haven. It has become more accessible through a growing number of cryptocurrency exchanges, and it has gained distribution through payment processors like Square (which recently bought $50 million worth of Bitcoin) and Paypal. It’s accepted by big name retailers Microsoft, Starbucks, and Whole Foods, while the list keeps growing.

And bitcoin ownership is soaring. The number of bitcoin addresses with a balance of $1,000 or more has just hit a new all-time high. JPMorgan recently said it expects over time bitcoin will grow in popularity with millennials, and Kanye West just reiterated his support for alternative currencies like Bitcoin.

Bitcoin-Silver Parallels

Much of what’s I’ve said about bitcoin is also true for silver.

It’s not easily produced, there’s a limited supply, it’s seen by many as money, and it’s a safe haven. And it can’t be inflated.

Bitcoin US dollar

Like bitcoin, silver also goes through huge rallies which can lead to huge payoffs for investors.

Silver price

But a couple of things are different between silver and bitcoin.

For one, the “elites” don’t pay much attention to silver. It’s there, it’s relatively cheap, and it’s a small market.

Also unlike bitcoin, the supply of silver is not finite. And as I’ve pointed out previously, just 28.7% of new silver supply comes from primary silver mines. 71% of newly mined silver is only produced as a by-product of other metals like gold, copper, lead and zinc. So a large portion of newly mined silver is not driven by its price. If silver prices rise dramatically, that doesn’t imply more production.

Here’s perhaps one of the most interesting comparisons. According to Steve St. Angelo of the SRSrocco Report (at $1,300 gold and $20 silver), all the investment gold worldwide is worth $2.93 trillion, all mined bitcoin so far is worth $240 billion, and the total investment silver market is worth $52 billion.

My main takeaway is obviously not to pit silver against bitcoin. Rather, it’s to point out their similarities, and the opportunities they offer going forward.

Investors should not look see these options as mutually exclusive. Instead, they should simply own silver and bitcoin.

Yes, they are likely to be volatile. But they also both have wild secular bull markets ahead of them.

And that’s way more important than any differences.

–Peter Krauth

Peter Krauth is a former portfolio adviser and a 20-year veteran of the resource market, with special expertise in energy, metals and mining stocks. He has been editor of a widely circulated resource newsletter, and contributed numerous articles to Kitco.com, BNN Bloomberg and the Financial Post. Krauth holds a Master of Business Administration from McGill University and is headquartered in resource-rich Canada.

 

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Fibonacci Retracements Analysis 23.10.2020 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

In the daily chart, BTCUSD is skyrocketing after updating its previous high. At the moment, the pair is moving to reach or even break the fractal high at 13857.20. However, there might be a divergence on MACD to indicate a short-term pullback or a reversal soon. To confirm a possible reversal, the asset must test and break the support at 61.8% fibo at 10060.00.

BTCUSD_D1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H4 chart shows a more detailed structure of the current ascending wave after the correction, which may be heading to reach both the high at 13857.20 and the post-correctional extension area between 138.2% and 161.8% fibo at 13490.00 and 14115.00 respectively. The local support is the low at 9824.00.

BTCUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the daily chart, after completing the correction at 38.2% fibo, Ethereum is trying to form a new rising wave. However, one shouldn’t exclude a possibility of another descending impulse to reach 50.0% fibo at 289.50.

ETHUSD_D1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H4 chart, the ascending correction has reached 61.8% fibo and may later continue towards 76.0% fibo at 445.55, as well as the high at 488.68. The local support is the low at 305.42.

ETHUSD_H4

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Bitcoin hits $12,000 on Paypal move: Time is up for Bitcoin deniers

By George Prior

– Paypal’s decision to allow customers to buy, sell and hold Bitcoin underscores that Bitcoin deniers and cryptocurrency cynics are on the wrong side of history, affirms the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The comments from Nigel Green, chief executive of deVere Group and high-profile crypto advocate, follow Paypal’s move to enter the digital currencies sector on Wednesday.

The price of Bitcoin surged through $12,000 on the news.

Mr Green notes: “Unbelievably there are still some financial ‘experts’ and financial watchdogs who believe that cryptocurrencies are not the future of money.

“The decision by one of the biggest payment companies in the world to allow customers to buy, sell and hold Bitcoin is yet another example that exposes Bitcoin deniers and cryptocurrency cynics as being on the wrong side of history.

“Let’s be clear: This is a major step forward towards the mass adoption of digital currencies.”

He continues: “The blistering speed of the digitalisation of economies and every aspect of our lives, including financial lives, shows that there will be a growing demand for digital, global, borderless money – characteristics that are inherent to the likes of Bitcoin.”

Last week, the CEO, who launched the deVere Crypto app in 2018, noted: “There’s been something of an avalanche of interest in Bitcoin in recent weeks from household-name investors.

“Investor activity is picking up considerably with various on-chain metrics and ongoing – and heightening – global political, economic and social turbulence suggesting that there will be a price surge before the end of the year.”

He went on to add: “There’s a growing sense that we’re set to experience a mini-boom similar to that at the end of 2017.

“Prices are yet to catch-up with investor interest – but this is only a matter of time as investors will not want to sleepwalk towards perhaps year-high prices in the run-up to the end of 2020.”

The late 2017 bull-run saw the Bitcoin price reach its all-time high of $20,089.

Mr Green adds: “I believe Paypal’s decision will drive more institutional investors into the already burgeoning crypto sector, bringing with them their capital and expertise.

“The direction of travel has already been on this path, but there is a growing sense that more investors will now be preparing to move off the sidelines.”

He concludes: “Surely, the time is up for those relics who still believe cryptocurrencies are not the way forward?”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Ichimoku Cloud Analysis 20.10.2020 (BTCUSD, XAUUSD, NZDUSD)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is trading at 11755.00; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. As one can see, the cryptocurrency is steadily growing. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 11505.00 and then resume moving upwards to reach 12425.00. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 10925.00. In this case, the pair may continue falling towards 10305.00. To confirm further growth, the asset must break the rising channel’s upside border and fix above 11965.00.

BTCUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

XAUUSD, “Gold vs US Dollar”

XAUUSD is trading at 1900.00; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. As one can see, bulls have failed to break the resistance level at 1915.00 as the precious metal has rebounded from it for the third consecutive time. The markets could indicate that the price may test the cloud’s upside border at 1905.00 and then resume moving downwards to reach 1835.00. Another signal in favor of further downtrend will be the formation of a Head & Shoulders reversal pattern. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1920.00. In this case, the pair may continue growing towards 1955.00. To confirm further decline, the asset must break the pattern’s neckline and fix below 1885.00.

XAUUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.6562; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 0.6570 and then resume moving downwards to reach 0.6435. Another signal in favor of further downtrend will be a rebound from the rising channel’s downside border. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 0.6655. In this case, the pair may continue growing towards 0.6745.

NZDUSD

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Is Bitcoin set to have a 2017-style mini-boom this year?

By George Prior

Bitcoin’s price is set to “surge before the end of 2020” with investors keen not to “sleepwalk” through a 2017-style mini-boom, says the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The prediction from Nigel Green, the deVere Group CEO and founder, which has $12bn under advisement, comes as Bitcoin – already one of the best-performing assets this year – appears to be on the brink of a bullish breakout.

In recent days, Square, which is owned by the billionaire founders of Twitter, has allocated 1% of its cash reserves to the cryptocurrency, whilst a former Goldman Sachs hedge fund chief says the price of Bitcoin will jump to $1m in five years.

Mr Green comments: “There’s been something of an avalanche of interest in Bitcoin in recent weeks from household-name investors.

“Investor activity is picking up considerably with various on-chain metrics and ongoing – and heightening – global political, economic and social turbulence suggesting that there will be a price surge before the end of the year.

“Like gold, Bitcoin can be expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses. Investors will increase exposure to decentralized, non-sovereign, secure digital currencies, such as Bitcoin, to help shield them from the potential issues in traditional markets”.

He continues: “There’s a growing sense that we’re set to experience a mini-boom similar to that at the end of 2017.

“Prices are yet to catch-up with investor interest – but this is only a matter of time as investors will not want to sleepwalk towards perhaps year-high prices in the run-up to the end of 2020.”

The late 2017 bull run saw the Bitcoin price reach its all-time high of $20,089.

The deVere CEO concludes: “There’s been a notable ramping-up of interest in Bitcoin amongst investors since the end of summer. Indeed, it has been the best performing week for one of the year’s best-performing assets since July.

“I can see no reason why this upward trajectory will not continue between now and the end of the year.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

 

Fibonacci Retracements Analysis 16.10.2020 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

In the H4 chart, there is a divergence on MACD, which may indicate further growth towards the high at 12479.50 but only after the price breaks the current high at 11723.00. However, the main scenario implies that the BTCUSD may continue falling with the short-term target at the low at 9824.00. After breaking this level, the next descending wave may be heading towards the mid-term 38.2% fibo at 9210.00.

BTCUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows a more detailed structure of the current correction. The first descending wave has reached 23.6% fibo and later may move towards 38.2%, 50.0%, and 61.8% fibo at 10998.00, 10775.00, and 10550.00 respectively.

BTCUSD_H1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, Ethereum has tried to re-test 50.0% fibo at 397.10. as long as the price is moving above the fractal low at 305.42, one shouldn’t exclude a possibility of further growth towards 61.8% fibo at 418.65. However, if ETHUSD manages to form a stable downtrend and break the above-mentioned low, the instrument may continue falling to reach 50.0% fibo at 289.50. The resistance is the high at 488.68.

ETHUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, the pair is heading towards 50.0% fibo at 364.10 after a divergence. Later, the price may continue falling to reach 61.8% and 76.0% fibo at 356.80 and 348.88, as well as the low at 333.02. The local resistance is the high at 395.27.

ETHUSD_H1

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Bitcoin: the UK and US are clamping down on crypto trading – here’s why it’s not yet a big deal

By Gavin Brown, University of Liverpool

The sale and promotion of derivatives of bitcoin and other cryptocurrencies to amateur investors is being banned in the UK by the financial regulator, the Financial Conduct Authority (FCA). It is a further blow to the burgeoning cryptocurrency market, coming days after the US authorities indicted the owners of leading crypto derivatives exchange BitMex for operating without being US-registered and allegedly failing to follow anti-money-laundering rules.

In view of recent findings from the University of Cambridge that most firms involved in crypto investments are still operating without a licence, other operators are potentially vulnerable to indictments too.

It all sounds like bad news for anyone hoping that more investors will put money into cryptocurrencies. But on a closer inspection, I’m not so sure.

Drops and oceans?

The FCA is preventing retail investors from buying and selling the likes of cryptocurrency futures and options, which people often use as a way of hedging their bets on an underlying asset. For example, you might buy an option to sell a certain number of bitcoin at today’s price if the price falls by 10%, giving you an insurance policy in case the market moves against you.

The FCA said it was introducing the ban from January 6 because amateur investors were at risk of “sudden and unexpected losses”. The reasoning is that these people often don’t understand the market, there is lots of “market abuse and financial crime” in the sector, cryptocurrencies are very volatile and they are hard to value.

To stress, the ban is not being extended to professional traders or institutional firms like hedge funds, which have typically been allowed access to riskier financial products than the general population. It is about protecting people who might have been drawn to bitcoin thinking “it may be the currency of the future”, having “heard sensational news coverage about the rise and fall”. There are any number of splashy trading sites offering them quick and easy entry into this world, and YouTube influencers who enthusiastically encourage them to try complex trading.

Some 1.9 million people – around 4% of the adult population – own cryptocurrencies in the UK. Three-quarters have holdings worth less than £1,000 and would certainly qualify as retail investors. We don’t know what proportion of UK investors use crypto derivatives, but we do know that the worldwide trade in these financial products was nearly a fifth of the total crypto market in 2019 (and has been growing rapidly in 2020).

Yet retail investors are probably not the main users of derivatives. Trading site eToro said earlier this year that maybe only a tenth of their retail investor spend was on this segment. And with most of the UK contingent using non-UK based exchanges, it’s easy enough to avoid FCA jurisdiction. The FCA says the ban could reduce annual losses and fees to investors by between £19 million and £101 million.

The ban also doesn’t make much difference at a worldwide level. The UK crypto market is small beer compared to global cryptocurrency holdings, which are worth US$335 billion (£258 billion). You would not therefore have expected the FCA ban to have a material detrimental impact on the price of bitcoin or leading alternative coins like ethereum, and sure enough, it didn’t. In fact, it was widely expected by industry observers and had arguably already been priced in.

Volatility and excessive risk

The fact that the price of bitcoin is very volatile has historically been the scourge of this sector, with many specialists repeatedly saying that this prevents it from serving as a store of value and becoming a functional currency. You could argue that banning some derivatives trading has the potential to reduce this volatility.

When people buy derivatives, they can be highly levered, meaning that they are borrowing to increase the size of their trade to make greater potential gains (or losses). Many exchanges, typically in Asia, allow investors to borrow 15 times the size of the trade, while some offer over 100 times leverage.

When trades are leveraged, investors enter and exit the market more quickly, since their loss or gain is multiplied by the proportion they have borrowed. It’s this effect on the market that increases price volatility. Yet bitcoin has lately been trading at an all-time low for volatility, so the ban may not achieve much in this respect.

None of this is to say that the ban is meaningless. Derivatives make markets more efficient by allowing investors to hedge their bets, so even a partial ban in one major country has to be seen as a step backwards for cryptocurrencies. There is also a bigger danger for the industry that other leading global financial regulators such as the SEC in the US and BaFin in Germany may follow suit.

This damage could be greatly aggravated if the US or other authorities were to indict other unregistered exchanges like BitMex. That could cause a liquidity crisis as investors withdrew their money en masse. Again, we will have to wait and see what happens. BitMex has said that around 30% of customer funds have been withdrawn since the US issued charges, but insists it is open for “business as usual”.

But as far as the UK ban is concerned, I would argue on balance that curtailing excessive risk-taking by amateur traders in a sector where trading vanilla cryptocurrencies is risky enough seems logical. I have met many “retail investors” in crypto whose depth of knowledge is refreshing, far exceeding that of financial institutions, but there will certainly be others who don’t understand their risks.

To end on a positive note, part of the FCA’s reasoning for the ban was that there was “no reliable basis” for valuing cryptocurrencies. It did not say there was no value in cryptocurrencies. That is a noticeable shift from what regulators might have said in the past, and is a sign that bitcoin is becoming more widely accepted.The Conversation

About the Author:

Gavin Brown, Associate Professor in Financial Technology, University of Liverpool

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

Billionaire tech entrepreneurs need to school financial regulators on Bitcoin

By George Prior

Billionaire tech entrepreneurs need to school financial regulators on Bitcoin and cryptocurrencies – which are the future of money – affirms the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The comments from Nigel Green of deVere Group come as it was announced that Square, the payments company founded by billionaires Jack Dorsey and Jim McKelvey, has just invested $50 million in Bitcoin.

Mr Green observes: “Billionaire tech entrepreneurs, most major financial institutions, and an ever-growing number of retail and institutional investors are increasing their exposure to Bitcoin and other cryptocurrencies.

“This is not a coincidence. They are all paying attention. They know that digital currencies are to money what Amazon was to retail.”

He continues: “Yet, bizarrely, some financial regulators of major markets cannot, seemingly, see the intrinsic value of cryptocurrencies.

“They are adopting a head-in-the-sand approach and issuing bans rather than focusing on establishing robust regulatory frameworks.

“Do they honestly believe that there is no place for, and no value of, digital, global, borderless currencies in an increasingly tech-driven world?”

In recent days, the UK’s Financial Conduct Authority (FCA) published its final rules banning the sale of derivatives and exchange-traded notes (ETNs) that reference certain types of crypto assets, such as Bitcoin, Ether and Ripple (XRP) to retail consumers.

“Some regulatory bodies display a staggering lack of understanding of this sector and perhaps they need to be educated by billionaire tech entrepreneurs, amongst others, on what is the future of money,” insists Nigel Green.

Earlier this week he noted that financial watchdogs cannot ignore crypto and need to focus instead on regulation. “This will provide further protection for the growing number of people using cryptocurrencies, it will help stamp out criminal activity, the less potential risk there will be for the disruption of global financial stability, and the more opportunities there will be for economic growth and activity in those countries which introduce it.”

He concludes: “Some financial regulators exclusively believe in and are focused on the traditional, centralised system of money.

“I would suggest that they need to also be open to a new, decentralized, non-sovereign, digital, global currency.

“Whether they like it or not, the world has profoundly changed and moved on in recent years. It can’t, and won’t, go backwards.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

UK watchdog’s Bitcoin ban slammed as ‘misguided’

By George Prior

The UK financial regulator’s Bitcoin crackdown underscores its misguided approach to cryptocurrencies – which are the future of money – says the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The damning analysis from Nigel Green, chief executive and founder of deVere Group, comes as the UK’s Financial Conduct Authority (FCA) publishes its final rules banning the sale of derivatives and exchange-traded notes (ETNs) that reference certain types of crypto assets, such as Bitcoin, Ether and Ripple (XRP) to retail consumers.

Mr Green notes: “This move by the FCA underscores the regulator’s rather misguided approach to cryptocurrencies.

“Whilst the FCA is not stopping people buying Bitcoin or other cryptocurrencies directly, it is banning the sale of products based on their prices.

He continues: “The regulator does express some valid concerns in its new rules, which we welcome and support.

“However, rather than banning, the FCA should be regulating the booming and unstoppable sector.

“This market, thanks to its exponential growth, needs a robust and enforceable regulatory framework. It needs scrutiny.”

The deVere CEO adds: “The staggering pace of the digitalisation of economies and every aspect of our lives highlights that there will be a growing demand for digital, global, borderless money.

“Already digital currency is almost universally regarded as the future of money – and we need a joined-up approach to tackling those who undermine it.

“In this regard, most major financial institutions globally already have or are preparing to establish crypto desks. It is why more and more retail and institutional investors are piling into the market. And it is why tech giants, like Facebook, amongst others are getting involved.”

Mr Green concludes: “The tide is not going back. Traditional, fiat, paper currencies are not the future.

“Therefore, regulation – not a ban – is necessary. This will provide further protection for the growing number of people using cryptocurrencies, it will help stamp out criminal activity, the less potential risk there will be for the disruption of global financial stability, and the more opportunities there will be for economic growth and activity in those countries which introduce it.

“The FCA should be leading the way on the future of money.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Fibonacci Retracements Analysis 02.10.2020 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

As we can see in the daily chart, BTCUSD is still testing 23.6% fibo after a divergence and the first descending wave. The pair tried to rebound from this level and start a new rising wave to reach the high at 12479.50 but failed. The key resistance now is at 76.0% fibo (11467.00). The next descending wave may be heading towards 38.2% and 50.0% fibo at 9212.00 and 8195.00 respectively.

btcusd_D1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H4 chart shows the correction to the upside. After almost reaching 61.8% fibo at 11210.00 and then falling towards the low at 9824.00, the pair failed to test the later level but the next ascending structure also failed to update the high. As a result, the next descending impulse is expected to break the low and continue moving to the downside.

BTCUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, Ethereum is moving rather similar to Bitcoin. The divergence made the pair complete the uptrend and start a new decline, which has reached 38.2% fibo. After testing this rea and breaking the low, the asset is expected to continue falling. The next downside targets may be 50.0% and 61.8% fibo at 289.20 and 242.05 respectively. The resistance is the high at 488.68.

ETHUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, the pair has almost reached 50.0% fibo at 341.40 after the local divergence. Later, the price may fall towards 61.8% and 76.0% fibo at 334.60 and 326.60 respectively, as well as the low at 312.81. The local resistance is the high at 370.00.

ETHUSD_H1

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.