Bitcoin gold rolled over a bit during the trading session, as we are looking towards the $250 level for support. We are currently crossed over in the oversold section of the Stochastic Oscillator, so there is a structural president for buyers to perhaps come back into the market. I believe that the support extends down to the $220 level, so some type of bounce or supportive candle could be an opportunity to start taking advantage of a market that has been beaten down as of late. Alternately though, I can make an argument for a massive descending triangle, so if we break down below the $220 level, we could be looking at a move down as low as $50! Obviously, that’s a disaster scenario, but right now I believe that the buyers will eventually take control again anyway.
BTG/USD DASH USD and XMR USD Video 07.12.17
Dash continues to roll over as well, reaching down towards the $670 level. This is an area that was previous resistance, so I think somewhere in this area we will find buyers. We are crossing over in the oversold part of the Stochastic Oscillator, so just like Bitcoin Gold it looks likely that we should find buyers based upon value. The resistance is near the $800 level, and if we can break above there, I think that the market continues to go much higher, probably looking towards the $1000 level. However, I need to see some type of bounce or supportive candle just below to get involved. A break above the $720 level would of course be a very strong sign as well, and I believe would bring a lot of traders into this market trying to take advantage of the overall crypto currency strength.
Monero initially tried to rally against the US dollar but found enough resistance just below the $300 level to roll over and go as low as $215. We turned around to rally again, so by forming a massive hammer on the 4-hour chart, I believe that we will gradually drift lower, but continue to find buyers as a bit of a momentum building exercise to finally clearing the $300 level. We had essentially gone too far into short of a time, so it makes sense that we need to rebuild a bit. I believe that the $200 level is now the “floor” in the market, and we should be a stay above there. Look at dips as value, and if you can be a bit patient, we could then be a bit of a “buy-and-hold” market, above the $300 handle. Monero of course is being a bit different than most other crypto currencies has been rallying while we have seen a lot of volatility in many of the other ones. The Bitcoin market of course being a bit different. In general, I believe that adding to your position slowly on these dips should continue to be the best way to trade the Monero space.
This article was originally posted on FX Empire
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