Equity Markets vs. Cryptocurrency Markets: Weekly Performance Review
A week ago, the relatively low unpredictability in the cryptocurrency market reached an end. Pretty much all cryptocurrencies dumped together with sharp declines, prompting renewed fear among the traders and investors. As usual, a bottom – at least temporarily – was in the long run discovered, leading to bounces across the board.
Then again, worldwide equity markets were relatively steady and for the most part holding above the support, following sharp drops in earlier weeks. In most cases, significant stock markets keep on evolving a potential base other than India, which starts a week ago has fallen through crucial support levels.
Global equity markets: holding steady
The German DAX index and S&P 500 drove the route with the increase of 3.63 % and 3.54% respectively. At the begin of the week, the DAX tumbled to a new trend low of 11,831.0 before seeing support, around the long – haul uptrend line and prior swing low from August. It immediately turned around intraday to close at the high of the day. It stays in a downtrend following a breakdown from a bear flag trend continuation signal two weeks ago.
The UK FTSE Index and Shanghai Composite saw the modest gain of 2.19% to 7,224.50 and 1.62% to 3,307.17 respectively. The trendline protection stays above the FTSE, and it has been tested several times in recent weeks and stopped an advance. This put the index in danger of falling below last week low 7,062.10. In the meantime, a potential bullish double bottom has formed. However, it is not affirmed unless there is a rally above the two – week high at 7,326.
Hang Seng: pointing higher
Since tumbling from the January peak of 33,484.1 Hong Kong’s Hang Seng Index has found backing twice around the long – haul uptrend line, and it continues to hold. A week ago, low of 29,852.40 was the second time that the index bounced off the support area around the edge. This instructs us to watch out for the line going ahead for the sign of a change in the relationship between the price and the track. Likewise, notice that the brown 100 days Moving average (MA) support line on the enclosed chart has been parallel to the trend line for a year. The 100-day MA is right now at 30,081.39.
The Hang Seng’s probably next upside target appears to be around 32,522.1/32,552.1. That is the place an ABCD design finishes, and the 78.6% Fibonacci retracement is hit, respectively.
If a drop below a week ago’s low happened instead of the first heads toward the latest swing low of 29,129.30 at A, trailed by a price zone around 28,588.50 to 28,495.77, which identified from the earlier resistance peak in May 2015, and the 200 days MA (purple line).
BSE 30 Sensex: falls through support
India’s BSE 300 Sensex Index scarcely got a bounce following the decrease to support of the 100 days moving average (MA) (Brown line) and 78.6% Fibonacci retracement area in February. Once discovering support, the Sensex build a comparatively narrow range rectangle consolidation pattern around the help of the MA and both above and underneath the long-term uptrend line, until a week ago. That’s when the index broke down from the rectangle pattern and below the 100 Moving Average (MA). A week ago, the Sensex was the lowest performer of the seven equity indices followed, falling by 739.80 or 2.17 percent to close at 33,307.14.
Just below a week, ago’s low of 32,991.14 is the crucial following help zone around 32,737 to 32,360, comprising of the 200-day MA and earlier help and resistance levels, respectively. Note that a break below the 32,565-swing low from December will damage the uptrend price structure and therefore likely leads to a more profound amendment.
A week ago’s low finished an 88.6 percent Fibonacci retracement of the prior uptrend. If the last week’s high of 34,060.13 can be surpassed to the upside, at that point, the Sensex may have a shot of bouncing higher. Until a breakout above last week’s high downward pressure remains dominant.
Cryptocurrencies: rock my world
Digital Currency devotees have their world shocked once again by a week ago with most coin dropping abruptly within a relatively short timeframe. There was juncture of factors that may have added to the wave of selling including:
Fear of Regulation: the US Securities and Exchange Commission declares an arrangement to regulate crypto trades as securities exchanges, adding a layer of regulation to the industry working in the US.
Large Supply: the bankruptcy trustee for Mt. Gox sola around $400 million of Bitcoin and Bitcoin cash since late September and it is noted there is an estimated $1.8 Billion still to be sold. Obviously, this raise that abundant supply has been a will continue to weigh on prices for some unknown period. Until last week’s decline.
In spite of the fact that the news appears to have played some part in spooking the market, in all cases the charts were already bearish, indicating lower prices. The report may have quickened the speed in the direction the price was already heading. For those deft and able to sell short, some excellent opportunities presented themselves.
IOTA and Dash were the most significant losers, with IOTA falling $0.53 or 27.9 percent to end at $1.38 and Dash down $109.40 or 18.1 percent to close at $494.88. Dash stays in an unmistakable indicated by its trend line, moving averages and price structure (lower highs and lower lows). The price broke through the support of the 200-day MA and is testing support of the February swing low of $376.05. Last week’s low was $438.80.
Although falling $0.07 or 8.4 percent to end at $0.82, Ripple tumbled the slightest out of the eight cryptos. Before the week, Coinbase slaughtered bits of gossip that it would add Ripple to its platform. XRP stays in a downtrend yet over its 200-day MA, following just behind Ripple is Litecoin with a 12.8 percent decline. Litecoin fell $27.28 to close at $186.04 and is flirting with the resistance of its 50-day line. Until last week’s drop, it had held in support of the 50-day for the earlier couple of weeks.
Ethereum: bounces off solid support, but will it continue to hold?
Ethereum finished down $129.89 or 15.2 percent a week ago to close at $724.61. It stays in a clear downtrend everyday basis and is below the 50-day line which keeps on falling, yet over the 200-day MA, which is still rising. A week ago’s low was at $637.73, right around the confluence of both the 78.6 percent Fibonacci retracement and the 127.2 percent Fibonacci projection. The projection also finished an ABCD pattern or measured move where the second leg down off the swing high at point A was around 127.2 percent of the price change in the first leg down.
The critical protection to watch in the close – by downtrend line. The ETH/USD pair would need to close above that line on an everyday basis there some sign that the bounce off last week’s bottom at D may continue. If the price falls further below a week ago’s low, then next watch for support around the juncture several Fibonacci price levels around $612.67. From that point onward, there is a price zone from around $587.07 (200-day MA) to the most recent swing low of $565.54.
IOTA: showing relative weakness
IOTA has been falling in a well-defined downtrend since the top at $5.80 in December. Not just it was the weakest performer a week ago. However, it is likewise the worst performer so far in 2018, down 60.6 percent. Starting a week ago, it takes a unique position technically as it is the only crypto out of the eight received after that fell below its earlier swing low from February. This is an indication of relative shortcoming when contrasted with the other seven digital currencies on our list.
He low from February was at $1.20, and a week ago the IOTA/USD pair dropped to $1.136 before reversing higher. Further, the digital currency is presently obviously back below its 200-day MA (purple line) starting a week ago’s drop, after being above it for most of the past several weeks.
Resistance at the 200-day MA is now at 1.71, with the downtrend line not far away. If you look at the brown falling 50-day line on the enclosed chart, you can see it has been following the downtrend line for the recent months. This implies a bullish breakout of the range should likewise rapidly be trailed by a breakout over the MA, which is presently at $1.965. Until then the downtrend continues.