Cryptocurrency and Stock Markets: A Review of Weekly Performance

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Market data are provided by the HitBTC Exchange.

Last week, the relatively low volatility in the cryptocurrency market came to an end. Just about all cryptocurrencies thrown together with sharp declines, triggering renewed fear among traders and investors. As always, a background – at least temporarily – was finally found, which resulted in widespread rebounds.

Moreover, the global stock markets have been relatively stable and have remained above support. weeks. In most cases, major stock markets continue to show lower potential than India, which last week fell to key support levels.

World Stock Markets: Stable

The German DAX The Index and the S & P 500 Index led the way with gains of 3.63% and 3 , 54% respectively. At the beginning of the week, the DAX fell to a new downtrend of 11.831.0 before seeing support, around the long-term uptrend line and the previous breakout from the month of April. August. He quickly reversed intraday to close at the height of the day. Nevertheless, it remains in a downtrend following the break of a continuation of bearish trend signal two weeks ago.

The British FTSE and Shanghai Composite index posted modest gains of 2.19% at 7244.50 and 1.62% at 3,307.17 respectively. The resistance of the trend line remains above the FTSE, and it has been tested several times in recent weeks and has stopped a lead. This puts the index at risk of falling below last week's low of 7,062.10. At the same time, a potential double bottom up is formed. However, it is not confirmed unless there is a rally above the two-week high at 7,326.

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Hang Seng: pointing higher

Since its fall from the peak of 33.484.1 in January, the Hang Seng index of Hong Kong has found support twice on the long-term uptrend line Last week, the index bounced on the support zone around the line for the second time, which tells us to keep an eye on the line in the future for the signs of a change in the relationship between the price In addition, note that the 100-day moving average (MA) support line on the graph attached is parallel to the trend line for one year, the current 100 day target being 30 081.39.

The next bullish Hang Seng target appears to be around 32.522.1 / 32.552.1. If a Fibonacci lowering of 78.6 percent is achieved, respectively.

If a fall below the lowest of the s last emaine occurs, the index heads first to the lowest of 29 129.30 to A, followed by a price zone around 28 588.50 to 28 495.77, identified from peak of previous resistance in May 2015, and 200-day MM (purple line).

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BSE 30 Sensex: Tomb lack of support

The BSE index 30 Sensex of India has barely experienced a rebound decline in support of the MA (brown line) of 100 days and of 78.6% of the Fibonacci retracement area in February Once support was found, the Sensex formed a relatively narrow range rectangle consolidation model around the AMM support and at the same time above and below the long-term uptrend line up until last week.It is at that point that the index broke down from the rectangle pattern and below last week, the Sensex was the worst of the seven stock indexes followed, down 739.80 or 2.17% to close at 33,307.14

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Just below the minimum of 32,991.14 is the next key support area around 32,737 to 32,360, including the 200-day AMM and note that a break under the December break of 32,565 violates the uptrend structure and therefore probably leads to a much deeper correction.

The low of last week ended a Fibonacci retracement of 88.6% of the previous one. If the peak of 34,060.13 last week can be overshot, then the Sensex could have a chance to bounce back until a break above the high bearish pressure of the last week remains dominant

Cryptocurrencies: rock my world

Enthusiasts cryptocurrency experienced a new turning point in their world last week with the precipitous fall of most coins in a lapse relatively short time. There was a confluence of factors that may have contributed to the sales wave, including:

  • Hacking – reports circulated that commercial robot applications connected to Binance, an exchange of high cryptocurrency have been hacked.

  • Fear of regulation – the US Securities and Exchange Commission announces a plan to regulate cryptographic exchanges as stock exchanges, adding a layer of regulation to the industry American

  • ]

  • Major Supply – The Bankruptcy Trustee of Mt. Gox has sold about $ 400 million of Bitcoin and Bitcoin Cash since late September and it is reported that there is still about $ 1.8 billion to sell. Of course, this raises fears that a large supply has weighed and will continue to weigh on prices for an unknown period.

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] Although the news seems to have played a role in the fear of the market, in almost all cases, the charts were already bearish The news may have accelerated the speed in the direction that the price was already in the lead. For those agile and able to sell short, some great opportunities came up.

IOTA and Dash were the biggest losers $ 0.53 or 27.9% to close at $ 1.38, and Dash 109.40 $ or 18.1% to close at $ 494.88 Dash remains in a clear downtrend indicated by its trendline, moving averages and price structure (lower and lower) Price has broken through support of 2 00 days MA and tests the support of the bottom of swing of 376,05 $ in February. Last week was $ 438.80

Although it dropped $ 0.07 or 8.4% to finish at $ 0.82, Ripple plummeted the least of the eight cryptos. Earlier in the week, Coinbase killed rumors that he was going to add Ripple to his platform. XRP remains in a downtrend but above its 200-day MA, while a number of other major cryptos are below their 200-day GA. Just behind Ripple is Litecoin with a drop of 12.8%. Litecoin fell $ 27.28 to close at $ 186.04 and flirts with the resistance of his 50-day line. Until last week, he had maintained his support over the 50 days for the previous two weeks.

Ethereum: Bounces on a solid backing, but will it continue to hold?

Ethereum ended down $ 129.89 or 15.2 percent last week to close at $ 724.61. It remains in a clear downtrend on a daily basis and is below the 50-day line that continues to fall, but above the 200-day MA that continues to rise. Last week's low was $ 637.73, just at the confluence of the 78.6% Fibonacci retracement and the 127.2% Fibonacci projection. The projection also completed an ABCD model or a measured move, where the second highest gap portion at point A was about 127.2% of the first phase price change.

<img alt=" ETH "src =" "title =" ETH "/>

The main resistance to watch is the line of the bearish trend close.The ETH / USD pair is expected to close this line on a daily basis before there is any sign that last week's rebound to D may continue.If the price falls even lower than last week, so watch for support around the confluence of several Fibonacci price levels around $ 612.67.There is a price range of about $ 587.07 (200-day MA) at $ 565.54 low

IOTA: showing relative weakness

The IOTA falls in a well the downtrend set from the peak at $ 5.80 in December. perform last week, but it is also the worst performer so far in 2018, down from 60.6 for this Last week, he was in a unique technical position as he is the only crypto out of the eight follow-ups that fell below his February low. This is a sign of relative weakness compared to the other seven cryptocurrencies on our list. February 's low was $ 1.20, and the IOTA / USD pair dropped last week to $ 1,136 before reversing higher. In addition, cryptocurrency has clearly returned to its 200-day MM (purple line) down last week, having been above for most of the past few weeks.

<img alt=" IOT "src =" "title =" IOT "/>

The resistance to the MM 200 days is now at 1.71, with the downtrend line not far away If you look at the 50-day falling brown line on the attached chart, you can see that it has been following the bearish trend line for the last two months, which means that a break-up of the line also needs to be quickly followed by a break above the MA, which is now at $ 1,965 up to that point. the downward trend continues

Market data are provided by the exchange HitBTC for analysis are provided by TradingView.