Technical analysis on cryptocurrencies for 24.11.2017

BTCUSD

Friday's Asian session began with aggressive sell-offs of the leading cryptocurrency, as a result of which bitcoin lost about 2.5% of its value in just the first hours of the current session, falling from the local high of $8173 to $7893. According to AMarkets analysts, further decline in the asset was halted by the support of the daily Pivot level S3, located just below the 8000 mark.

Also, bitcoin did not dare to break through the zero Fibonacci level ($7870) and the long EMA200 moving average ($7925) in one move. Given that in the immediate vicinity of these levels the initiative again passed into the hands of the bulls, we recommend considering them as strong support, a move below which will signal a high probability of continuation of the local downward trend. In other words, as long as the BTCUSD pair is quoted above $7850, buyers have more chances to update a new local high than sellers have to drag bitcoin into the $7500 area. This is still the scenario we are sticking to for now.

DSHUSD

According to AMarkets analysts, unlike BTCUSD, the DSHUSD pair is pleasing only buyers. Given that at the moment dash quotes are above $550, we congratulate everyone on another successful trade. Despite the still high trading volumes, represented mainly by buying, we recommend not rushing to open new longs, but instead conducting a technical reassessment of the asset's prospects. The technical picture indicates precisely that bear activity may emerge suddenly. In favor of a correction is the price breaking through the EMA25 and EMA50 moving averages, dash returning to the descending channel, as well as the sharp decline of the MACD histogram bars, which is about to move into negative territory. Given that the fast moving average crossed EMA50 from top to bottom, it can be assumed that the momentum of the corrective movement is already gaining pace. Against this background, as the next target we suggest focusing on a return to the $500 support.

ETHUSD

Ethereum not only reached the long target at $375, but also continued to rise, breaking through the upper boundary of the ascending channel. The absolute highs have finally been updated, and the coin is preparing for more ambitious targets. As noted earlier, part of the profit can be taken off the table. A return to the key level of $393 is possible, along with gathering strength to conquer further heights in the $393-$411 range. The long-term target is seen in the $500-$504 area, where a psychologically important level meets R5 projected from the monthly Pivot. Those who want to take a risk can try buying now; more conservative traders are advised to pick up ether after another rebound from the $400 support.

Material provided by the analytical department of AMarkets