Technical analysis for cryptocurrencies for 11/08/2017

BTCUSD

BTCUSD continues to hold above the uptrend line, supported fundamentally by expectations of a potential launch of bitcoin futures contracts on CME. According to the management of the world's main derivatives venue, the founder of the crypto industry will mark the beginning of the formation of a new asset class, like gold and stocks.

According to analysts at AMarkets, market participants' optimism is explained by the fact that the launch of exchange-traded contracts will contribute to an influx of additional liquidity, which will affect its capitalization. Despite the presence of prerequisites for fundamental growth, we recommend not losing sight of the fact that bitcoin is excessively overbought. For this reason, it is better to build short-term trading from the short side. As before, a signal to take a short position may be BTCUSD returning to the ascending channel. Given that the coin is now trading above the main moving averages, above the R1 level of the daily Pivot, and is also supported by the MACD histogram being above zero, it will take time to consolidate below the $7050 level. Nevertheless, if it is broken, the target for bitcoin's decline may be the $6000 support.

DSHUSD

Dashcoin has developed impressive bullish momentum over the past two days, reaching the previously designated target of $300. Nevertheless, the asset still failed to overcome such a powerful resistance level. It is likely that the increased selling volumes made themselves felt, at a certain moment several times exceeding the average for the past month. The 61.8 Fibonacci level, which has been holding the pair back for more than 7 weeks, could also have cooled the bulls' enthusiasm. The technical picture formed during Wednesday's Asian session indicates a high probability of continued growth: Dash is leaning on the 50th Fibonacci level, the EMA25, 50 and 200 moving averages remain below the price, there is still no hint of MACD divergence, the histogram of which has been building volume in positive territory for the third day already. Against this background, we recommend waiting for a retest of the $300 level, after which you can take shorts with a target of returning to the uptrend line at $278.

ETHUSD

Ether continues to toss about in the $310-275 range, and these boundaries are real barriers, impregnable for both bulls and bears. Analysts at AMarkets recommend sticking to the previous scenario, which implies trading inside the given channel. At the moment, ETHUSD is quoted at the median level of $295, so the chances of sellers and buyers reaching the opposite boundaries of the corridor are equal. For those who still want to take a risk, we recommend supporting buyers. In favor of short-term growth is the asset's consolidation above the long-term moving average, the 23.6 Fibonacci level left behind, as well as MACD, which is about to move into positive territory. More conservative traders are better off trading rebounds from the $310 or $275 levels with the potential to return to the opposite boundaries of the channel.

Material provided by the analytical department of AMarkets