Technical analysis on cryptocurrencies for 10.11.2017

BTCUSD

The BTCUSD pair continues to trade above $7200, relying on the uptrend line, which at the same time is also the upper boundary of the ascending channel. During Tuesday's trading session, bitcoin for the already "millionth" time this year renewed a historic high, after which the bulls' enthusiasm faded a little. This was followed by a correction, whose impulse ran into an obstacle at the level of the 200-day moving average ($7100).

Given the current dynamics, as well as the fact that the technical picture continues to favor buying (the bit has crushed the entire EMA community, is holding above the supporting Pivot, and on M30 has even run into a convergence of price and MACD), there is no need to rush with them. One should not forget the true reason for the local dominance of the bears: the cancellation of the scheduled hard fork, which had supported the bullish rally for three weeks in a row. Probably, the downward potential of this news has not yet been fully priced in, and for confidence sellers lack only technical support. Specifically, bitcoin's consolidation below the uptrend line at $7100 may serve as a good trigger for a further correction with a target at the level of the first Pivot support ($6950).

DSHUSD

Dashcoin on sharply increased volumes overcame the $300 resistance, adding more than 10% of its own value over the day. The weekly high was marked at $333.84. Such buyer activity was a consequence of the price losses that bitcoin was forced to incur on reports of the hard fork cancellation. Analysts at AMarkets remind that there is a correlation between the industry's main cryptocurrency and altcoins, which leads to a redistribution of capital among different assets. Those who, on the weakness of the "bit," decided to try their luck in dash did not miscalculate. Given the presence of additional downside potential in bitcoin, growth in the DSHUSD pair may continue. In favor of this scenario are the pair's location within the ascending channel, as well as a confident breakout and consolidation above the 100 Fibonacci level. In addition, dash is trading above EMA50 and EMA200, left far behind. We recommend waiting for Dashcoin to return to the opening level of the current session ($326), after which to open long positions with a target of reaching the upper boundary of the ascending channel at $355, where 161.8 Fibonacci also runs.

ETHUSD

Ethereum is trading in a narrow range in today's session, mostly losing in price. AMarkets analysts note that yesterday's breakout of the $316 resistance left a fairly good reserve for the future, which in turn should help keep the rate above the $310 mark. EMA moving averages (50,200) have crossed, indicating the presence of a fast uptrend, but because of low trading volumes in the last 5 hours, the ETHUSD pair may continue to consolidate at current levels. It is better not to consider shorts for now, but on a rebound from $310 it is worth thinking about opening long positions with the aim of returning to the previous highs at $330.

Material provided by the analytical department of AMarkets