Ethereum Reached the 2800s. What’s Next!?

I say “mostly” because I did not get it right all the time, which is, of course, impossible when one is trying to forecast a non-linear, stochastic environment. And I will be first to admit “I am wrong till proven right,” as that allows for a humble, objective approach to improve my forecasting accuracy and reliability for my premium crypto members. But, as you may recall, $2775+/-100, $2700-2855 more specifically, was my next intermediate-term upside target for ETH for quite some time, and this week it has been reached.

So what is next?

Not shown here, but the daily chart for ETH strongly suggests it is wrapping up some tiny 4th and 5th EWP waves to complete the more significant (black) major-3 wave, as shown in Figure 1 below.

Figure 1. ETH monthly EWP count and technical indicators.

The rally to $2860 will soon complete

The monthly chart above tells what the big-picture, long-term trend, and EWP count is. ETH is in a solid Bull market as it is well above its ascending 10-month, 20-month, and 50-month Simple Moving Averages (SMA), with the 10>20>50. A 100% Bullish setup. In addition, the monthly Relative Strength Indicator (RSI5) is at almost 99, showing how strong the current uptrend is as the maximum possible reading is 100.

The summer of 2017 had similarly high monthly RSI5 readings (red box): 99.18 and 99.38, respectively. ETH peaked in June 2017 at $417.21, dropped to $132.64 in July 2017, followed by a rally to $1422.86 in January 2018. A 68% correction, followed by 970% gain. Quite impressive numbers. Back then, ETH completed blue Primary III, IV, and V of pink Cycle wave-1, respectively. Therefore, the instrument is in a similar wave setup now, albeit at different degrees: currently completing Major wave-3 of Primary-III. The current maxed out RSI5 reading supports this notion as 3rd of 3rd waves are the most substantial waves. Given the near-vertical ascend of ETH over the past six months, it is pretty obvious we are dealing with such a wave, and the 2017 analogy tells us we should expect a pretty decent correction soon: wave-4.

Typically 4th waves retrace between 23.60-38.20% of the initial 3rd wave but can extend to the 50% retrace. If anything, 2017 showed us it could even be more. The black box in Figure 1 shows the standard, textbook, target zone for this pending wave-4. Besides, horizontal support resides at $1900-2000 and $1300-1500. The latter area would “only” be a 55% decline for ETH and still fit well with the 2017 correction. An almost 1000% advance, even from those levels, would target the low- to mid-ten thousands. But for now, let’s focus on the pending decline, as extreme wave extensions cannot be forecasted and thus not guaranteed.

Bottom line: The anticipated rally to the ideal target zone of $2700-2855 has been accomplished. Although wave-extensions, i.e., even slightly higher prices, can not be excluded, I now expect a multi-week decline back to at least around $1900-2000, but ideally $1400+/-100. The latter would be an almost 50% haircut, which is not uncommon before ETH is ready to stage its next multi-month rally. A move and close below this week’s low at $2088 from current levels or slightly higher will signal this deep correction is underway.

 

The Crypto Daily – Movers and Shakers – April 30th, 2021

Bitcoin, BTC to USD, fell by 2.36% on Thursday. Following on from a 0.33% decline on Wednesday, Bitcoin ended the day at $53,566.0.

A bullish start to the day saw Bitcoin rise to an early morning intraday high $55,222.0 before hitting reverse.

Falling short of the first major resistance level at $56,222, Bitcoin slid to a late intraday low $52,377.0.

The sell-off saw Bitcoin fall through the first major support level at $53,707 and the second major support level at $52.554.

Finding late support, however, Bitcoin broke back through the second major support level to end the day at $53,500 levels.

The near-term bullish trend remained intact supported by the partial recovery to $55,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Thursday.

Binance Coin and Polkadot rose by 6.60% and by 8.49% respectively to lead the way.

Chainlink (+0.59%), Ethereum (+0.27%), and Ripple’s XRP (+2.90%) also found support.

It was a bearish day for the rest of the majors, however.

Bitcoin Cash SV (-0.73%), Cardano’s ADA (-2.37%), Crypto.com Coin (-1.01%), and Litecoin (-1.27%) joined Bitcoin in the red.

In the current week, the crypto total market fell to a Monday low $1,778bn before rising to a Wednesday high $2,124bn. At the time of writing, the total market cap stood at $2,013bn.

Bitcoin’s dominance rose to a Monday high 51.73% before falling to a Thursday low 49.20%. At the time of writing, Bitcoin’s dominance stood at 49.45%.

This Morning

At the time of writing, Bitcoin was down by 0.59% to $53,250.0. A mixed start to the day saw Bitcoin rise to an early morning high $53,638.0 before falling to a low $53,068.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bearish start to the day.

At the time of writing, Binance Coin and Crypto.com Coin were down by 1.73 and by 1.77% respectively to lead the way down.

BTCUSD 300421 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the $53,722 pivot to bring the first major resistance level at $55,066 into play.

Support from the broader market would be needed for Bitcoin to break out from $54,500 levels.

Barring an extended crypto rally, the first major resistance level and Thursday’s high $55,222.0 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $58,000 before any pullback. The second major resistance level sits at $56,567.

Failure to move through the $53,722 would bring the first major support level at $52,221 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of the second major support level at $50,877 and the 23.6% FIB of $50,473.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 30th, 2021

Ethereum

Ethereum rose by 0.27% on Thursday. Following on from a 3.14% gain on Wednesday, Ethereum ended the day at $2,758.92.

A mixed start to the day saw Ethereum fall to a mid-morning intraday low $2,672.00 before making a move.

Steering clear of the first major support level at $2,614, Ethereum rallied to a mid-day intraday high and a new swing hi $2,800.00.

Falling short of the first major resistance level at $2,826, Ethereum fell back to sub-$2,700 levels and into the red.

Finding late support, Ethereum revisited $2,770 levels before easing back.

At the time of writing, Ethereum was down by 0.16% to $2,754.64. A mixed start to the day saw Ethereum rise to an early morning high $2,770.00 before falling to a low $2,753.84.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 300421 Hourly Chart

For the day ahead

Ethereum would need to avoid the pivot level at $2,744 to support a run at the first major resistance level at $2,815.

Support from the broader market would be needed, however, for Ethereum to break out from Thursday’s new swing hi $2,800.00.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $3,000. The second major resistance level sits at $2,872.

Failure to avoid the $2,744 pivot would bring the first major support level at $2,687 into play.

Barring an extended sell-off, however, Ethereum should steer clear of sub-$2,600 levels. The second major support level at $2,616 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $2,687

Pivot Level: $2,744

First Major Resistance Level: $2,815

23.6% FIB Retracement Level: $2,158

38.2% FIB Retracement Level: $1,761

62% FIB Retracement Level: $1,119

Litecoin

Litecoin fell by 1.27% on Thursday. Following on from a 0.45% decline on Wednesday, Litecoin ended the day at $255.51.

A mixed start to the day saw Litecoin fall to a mid-morning low $250.51 before making a move,

Steering clear of the first major support level at $249, Litecoin rose to a mid-day intraday high $262.99.

While falling short of the first major resistance level at $268, Litecoin broke through the 23.6% FIB of $262 before hitting reverse.

The reversal saw Litecoin fall to a late intraday low $248.75. Finding support at the first major support level at $249, Litecoin moved back through to $255 levels to limit the loss.

At the time of writing, Litecoin was down by 0.32% to $254.69.  mixed start to the day saw Litecoin rise to an early morning high $255.73 before falling to a low $254.69.

Litecoin left the major support and resistance levels untested early on.

LTCUSD 300421 Hourly Chart

For the day ahead

Litecoin would need to move through the $256 pivot level to support a run at the 23.6% FIB of $262 and the first major resistance level at $263.

Support from the broader market would be needed, however, for Litecoin to break back through to $260 levels.

Barring an extended crypto rally, the first major resistance level and resistance at $265 would likely cap any upside.

In the event of a bounce back, Litecoin could test resistance at $280. The second major resistance level sits at $270.

Failure to move through the $256 pivot level would bring the first majors support level at $249 into play.

Barring another extended sell-off, Litecoin should steer clear of sub-$240 levels. The second major support level at $242 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $249

Pivot Level: $256

First Major Resistance Level: $263

23.6% FIB Retracement Level: $250

38.2% FIB Retracement Level: $207

62% FIB Retracement Level: $138

Ripple’s XRP

Ripple’s XRP rose by 2.90% on Thursday. Partially reversing a 3.10% gain from Wednesday, Ripple’s XRP ended the day at $1.39984.

After a mixed start to the day, Ripple’s XRP fall to an early morning intraday low $1.32904 before making a move.

Steering clear of the first major support level at $1.2810, Ripple’s XRP rose to a late morning intraday high $1.41900.

Falling short of the first major resistance level at $1.4440, Ripple’s XRP fell back to sub-$1.35 levels and into the red.

Finding late support, however, Ripple’s XRP moved back through to $1.39 levels to deliver the upside on the day.

At the time of writing, Ripple’s XRP was down by 0.67% to $1.39046. A mixed start to the day saw Ripple’s XRP rise to an early morning high $1.40363 before falling to a low $1.39046.

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 300421 Hourly Chart

For the day ahead

Ripple’s XRP will need to avoid a fall through the $1.3826 pivot level to bring the first major resistance level at $1.4362 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from Thursday’s high $1.41900.

Barring an extended crypto rally, the first major resistance level and resistance at $1.45 would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at $1.50 before any pullback. The second major resistance level sits at $1.4726.

Failure to avoid a fall through the $1.3826 pivot would bring the first major support level at $1.3463 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of sub-$1.30 levels. The second major support level sits at $1.2927.

Looking at the Technical Indicators

First Major Support Level: $1.3463

Pivot Level: $1.3826

First Major resistance Level: $1.4362

23.6% FIB Retracement Level: $1.5426

38.2% FIB Retracement Level: $1.2807

62% FIB Retracement Level: $0.8573

Please let us know what you think in the comments below.

Thanks, Bob

Bitcoin Recoups Recent Losses While Ethereum Breaks To New Highs

BTC futures traded up moderately today, gaining 2% in value, closing at approximately $56,600. More impressive is the close effectively above the 50-day moving average after closing below it on April 22nd. This short four-day period marked the first occurrence of pricing below this technical indicator since October 9th.

wednesday chart #2

On a weekly candlestick chart, you can clearly see that Bitcoin futures basically recouped all the losses of last week, although Bitcoin failed to re-enter the upward channel that took it past $65,000 nearly three weeks ago. Our outlook right now is cautiously bullish.

Ethereum, on the other hand, is looking fully bullish and has been on the rise. Ethereum, the world’s second-largest crypto by market cap, has gained nearly 14% in value in the last seven days, compared to Bitcoin, which gained nearly 2% in the same period. The second place in terms of Market capitalization is by a wide margin, Ethereum’s $310,000,000,000 next to Bitcoin’s $1,000,000,000,000 may be small, but in terms of 24-hour spot volume, it’s a lot closer of a call, with Ether’s numbers at $33 Billion and Bitcoin’s 24 hr. trading volume not too much higher at $46 billion.

wewdnesday #3

ETH has been more resilient than BTC during this last correction where ETH just continued higher to make new record highs, currently trading above $2,700 for the first time in history. Ethereum looks poised to tackle $3,000 by the end of the summer.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 29th, 2021

Ethereum

Ethereum rose by 3.14% on Wednesday. Following on from a 5.31% gain on Tuesday, Ethereum ended the day at $2,751.59.

A mixed start to the day saw Ethereum to a mid-morning intraday low $2,551.00 before making a move.

Steering clear of the first major support level at $2,541, Ethereum rallied to a late intraday high and a new swing hi $2,762.59.

Ethereum broke through the first major resistance level at $2,739 before easing back.

At the time of writing, Ethereum was down by 0.11% to $2,748.46. A mixed start to the day saw Ethereum fall to an early morning low $2,732.14 before rising to a high $2,759.00.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 290421 Hourly Chart

For the day ahead

Ethereum would need to avoid the pivot level at $2,688 to support a run at the first major resistance level at $2,826.

Support from the broader market would be needed, however, for Ethereum to break out from Wednesday’s new swing hi $2,762.59.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $3,000. The second major resistance level sits at $2,900.

Failure to avoid the $2,688 pivot would bring the first major support level at $2,614 into play.

Barring an extended sell-off, however, Ethereum should steer clear of sub-$2,400 levels. The second major support level at $2,477 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $2,614

Pivot Level: $2,688

First Major Resistance Level: $2,826

23.6% FIB Retracement Level: $2,130

38.2% FIB Retracement Level: $1,738

62% FIB Retracement Level: $1,105

Litecoin

Litecoin fell by 0.45% on Wednesday. Partially reversing a 5.12% gain from Tuesday, Litecoin ended the day at $258.81.

A bullish start to the day saw Litecoin rise to an early morning intraday high $267.00 before hitting reverse.

While falling short of the first major resistance level at $268, Litecoin broke through the 23.6% FIB of $262.

The reversal saw Litecoin saw Litecoin fall to a mid-morning intraday low $248.51.

Finding support at the first major support level at $248, Litecoin revisited $260 levels before easing back into the red.

At the time of writing, Litecoin was down by 0.39% to $257.80. A mixed start to the day saw Litecoin fall to an early morning low $257.00 before rising to a high $259.72.

Litecoin left the major support and resistance levels untested early on.

LTCUSD 290421 Hourly Chart

For the day ahead

Litecoin would need to move back through the $258 pivot level to support a run at the 23.6% FIB of $262 and the first major resistance level at $268.

Support from the broader market would be needed, however, for Litecoin to break out from Wednesday’s high $267.00.

Barring an extended crypto rally, the first major resistance level and resistance at $270 would likely cap any upside.

In the event of a bounce back, Litecoin could test resistance at $285. The second major resistance level sits at $277.

Failure to move back through the $258 pivot level would bring the first majors support level at $249 into play.

Barring another extended sell-off, Litecoin should steer clear of sub-$240 levels. The second major support level at $240 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $249

Pivot Level: $258

First Major Resistance Level: $268

23.6% FIB Retracement Level: $250

38.2% FIB Retracement Level: $207

62% FIB Retracement Level: $138

Ripple’s XRP

Ripple’s XRP fell by 3.10% on Wednesday. Reversing a 2.94% gain from Tuesday, Ripple’s XRP ended the day at $1.35998.

After a mixed start to the day, Ripple’s XRP rise to an early morning intraday high $1.44908 before hitting reverse.

Falling short of the first major resistance level at $1.4682, Ripple’s XRP fell to a mid-morning intraday low $1.28600.

Ripple’s XRP fell through the first major support level at $1.3344 before revisiting $1.40 levels late in the day.

A bearish end to the day, however, saw Ripple’s XRP slide back into the red.

At the time of writing, Ripple’s XRP was up by 0.63% to $1.36856. A mixed start to the day saw Ripple’s XRP fall to an early morning low $1.34687 before rising to a high $1.37136.

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 290421 Hourly Chart

For the day ahead

Ripple’s XRP will need to avoid a fall back through the $1.3650 pivot level to bring the first major resistance level at $1.4440 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $1.44 levels.

Barring an extended crypto rally, the first major resistance level and Wednesday’s high $1.44908 would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test the second major resistance level at $1.5281 and resistance at the 23.6% FIB of $1.5426.

Failure to avoid a fall back through the $1.3650 pivot would bring the first major support level at $1.2810 and the 38.2% FIB of $1.2807 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of sub-$1.20 levels. The second major support level at $1.2019 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $1.2810

Pivot Level: $1.3650

First Major resistance Level: $1.4440

23.6% FIB Retracement Level: $1.5426

38.2% FIB Retracement Level: $1.2807

62% FIB Retracement Level: $0.8573

Please let us know what you think in the comments below.

Thanks, Bob

The Crypto Daily – Movers and Shakers – April 28th, 2021

Bitcoin, BTC to USD, rose by 1.76% on Tuesday. Following a 10.12% rally on Monday, Bitcoin ended the day at $55,044.0.

A mixed start to the day saw Bitcoin fall to an early morning intraday low $53,304.0 before making a move.

Steering clear of the first major support level at $50,493, Bitcoin rallied to a late intraday high $55,437.0.

Falling short of the first major resistance level at $56,049, however, Bitcoin eased back to sub-$55,000 levels before ending the day at $55,000 levels.

The near-term bullish trend remained intact supported by the partial recovery to $55,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish day on Tuesday.

Bitcoin Cash SV rallied by 10.87% to lead the way.

Binance Coin (+6.29%), Cardano’s ADA (+5.57%), Chainlink (+4.62%), Crypto.com Coin (+5.11%), Ethereum (+5.31%), and Litecoin (+5.12%) also found strong support.

Polkadot (+2.35%) and Ripple’s XRP (+2.94%) trailed the front runners, however.

Early in the week, the crypto total market fell to a Monday low $1,778bn before rising to a Tuesday high $2,078bn. At the time of writing, the total market cap stood at $2,057bn.

Bitcoin’s dominance rose to a Monday high 51.73% before falling to a Tuesday low 49.94%. At the time of writing, Bitcoin’s dominance stood at 50.27%.

This Morning

At the time of writing, Bitcoin was up by 0.39% to $55,260.0. A mixed start to the day saw Bitcoin fall to an early morning low $55,010.0 before rising to a high $55,298.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Polkadot was down by 0.34% to buck the trend early on.

It was a bullish start for the rest of the majors, however.

At the time of writing, Ripple’s XRP was up by 1.38% to lead the way.

BTCUSD 280421 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the $54,595 pivot to bring the first major resistance level at $55,886 into play.

Support from the broader market would be needed for Bitcoin to break out from $55,500 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $57,000 before any pullback. The second major resistance level sits at $56,728.

Failure to avoid a fall through the $54,595 would bring the first major support level at $53,753 into play.

Barring another extended sell-off on the day, Bitcoin should steer well clear of the 23.6% FIB of $50,473. The second major support level at $52,462 should limit the downside.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 28th, 2021

Ethereum

Ethereum rose by 5.31% on Tuesday. Following on from a 9.11% rally on Monday, Ethereum ended the day at $2,667.86.

A mixed start to the day saw Ethereum fall to an early morning intraday low $2,484.56 before making a move.

Steering clear of the first major support level at $2,379, Ethereum rallied to a late afternoon intraday high and a new swing hi $2,683.00.

Ethereum broke through the first major resistance level at $2,615 before easing back to $2,605 levels.

Finding late support, however, Ethereum broke back through the first major resistance level to end the day at $2,660 levels.

At the time of writing, Ethereum was up by 0.76% to $2,677.12. A bullish start to the day saw Ethereum rise from an early morning low $2,667.66 to a new swing hi $2,688.12

Ethereum left the major support and resistance levels untested early on.

ETHUSD 280421 Hourly Chart

For the day ahead

Ethereum would need to avoid the pivot level at $2,612 to support a run at the first major resistance level at $2,739.

Support from the broader market would be needed, however, for Ethereum to break through to $2,700 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $2,850. The second major resistance level sits at $2,810.

Failure to avoid the $2,612 pivot would bring the first major support level at $2,541 into play.

Barring an extended sell-off, however, Ethereum should steer clear of sub-$2,400 levels. The second major support level at $2,413 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $2,541

Pivot Level: $2,612

First Major Resistance Level: $2,739

23.6% FIB Retracement Level: $2,069

38.2% FIB Retracement Level: $1,689

62% FIB Retracement Level: $1,075

Litecoin

Litecoin rose by 5.12% on Tuesday. Following on from a 10.43% rally on Monday, Litecoin ended the day at $259.96.

A mixed start to the day saw Litecoin fall to an early morning intraday low $243.81 before making a move.

Steering clear of the first major support level at $230, Litecoin rallied to a late afternoon intraday high $264.00.

Litecoin broke through the first major resistance level at $257 and the 23.6% FIB of $262 before falling back to $255 levels.

Finding late support, however, Litecoin broke back through the first major resistance level to end the day at $259 levels.

At the time of writing, Litecoin was up by 0.81% to $262.07. A bullish start to the day saw Litecoin rise from an early morning low $259.92 to a high $262.50.

While leaving the major support and resistance levels untested early on, Litecoin broke through the 23.6% FIB of $262.

LTCUSD 280421 Hourly Chart

For the day ahead

Litecoin would need to avoid the $256 pivot level to support a run at the first major resistance level at $268.

Support from the broader market would be needed, however, for Litecoin to break out from Tuesday’s high $264.00.

Barring an extended crypto rally, the first major resistance level and resistance at $270 would likely cap any upside.

In the event of a bounce back, Litecoin could test resistance at $285. The second major resistance level sits at $276.

Failure to avoid a fall through the $256 pivot level would bring the first majors support level at $248 into play.

Barring another extended sell-off, Litecoin should steer clear of sub-$240 levels. The second major support level sits at $236.

Looking at the Technical Indicators

First Major Support Level: $248

Pivot Level: $256

First Major Resistance Level: $268

23.6% FIB Retracement Level: $250

38.2% FIB Retracement Level: $207

62% FIB Retracement Level: $138

Ripple’s XRP

Ripple’s XRP rose by 2.94% on Tuesday. Following Monday’s 31.66% breakout, Ripple’s XRP ended the day at $1.40322.

After a mixed start to the day, Ripple’s XRP rise to an early morning intraday high $1.46435 before hitting reverse.

Falling short of the first major resistance level at $1.4861, Ripple’s XRP fell to an early afternoon intraday low $1.33055.

Steering clear of the 38.2% FIB and the major support levels, Ripple’s XRP revisited $1.43 levels before easing back.

At the time of writing, Ripple’s XRP was up by 0.87% to $1.41544. A bullish start to the day saw Ripple’s XRP rise from an early morning low $1.40356 to a high $1.41764.

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 280421 Hourly Chart

For the day ahead

Ripple’s XRP will need to avoid the $1.3994 pivot level to bring the first major resistance level at $1.4682 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from Tuesday’s high $1.46435.

Barring an extended crypto rally, the first major resistance level and resistance at $1.50 would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test the second major resistance level at $1.5332 and resistance at the 23.6% FIB of $1.5426.

Failure to avoid a fall through the $1.3994 pivot would bring the first major support level at $1.3344 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of sub-$1.30 levels. The second major support level sits at $1.2656.

Looking at the Technical Indicators

First Major Support Level: $1.3344

Pivot Level: $1.3994

First Major resistance Level: $1.4682

23.6% FIB Retracement Level: $1.5426

38.2% FIB Retracement Level: $1.2807

62% FIB Retracement Level: $0.8573

Please let us know what you think in the comments below.

Thanks, Bob

Bitcoin and Ethereum Price Seeks to Recover Lost Grounds After Market’s Flash Crash

Both Bitcoin and Ethereum traded at a weekly low of $47,159.49, and $2,060.14 respectively. These price levels were surreal as prices had not gone that low since early March.

With the market held down in the oversold region for days, the news that America’s oldest wine brand Acker now accepts Bitcoin and Ethereum payments is perhaps adding to fuel the current bullish market outlook.

Bitcoin Fighting the $54,000 Resistance Level

Despite its 2.57% gain in the past 24 hours to $54749.8 according to data from CEX.IO price feed, Bitcoin bulls are coming off as weary of the $54,000 resistance level. The top for the digital currency to reclaim is its all-time high of $64,863.10 attained close to two weeks ago, however, the fear of rejection is slowing the ambitious push beyond the current levels.

The Technical indicators including the Moving Average and the Chaikin Money Flow are both not oblivion of the regained strides on the BTC/USD 4 hour chart. While the resurgence is obvious, Bitcoin still has a lot of push to erode the downward slide of the 9-day Moving Average. A consistent move upward will return Bitcoin’s price back to $60,000 in the short term.

Ethereum Pushes for New Price Zones

Ethereum’s recovery has been daunting, gaining 2.24% to trade at $2544.83. Retail sentiments remain high, while on-chain data reveals investors are not giving up on the future potentials of the Proof-of-Stake (PoS) network as total deposits top $9 billion.

At present, ETH is trading above its 6 and 20-day Moving Averages, making a case for a further upsurge in the near term. With the ATH of $2,641.09 the target in the short term, Ethereum bulls are potentially aiming for a new price territory above $3,000 in the medium to long term.

Konstantin Anisimov, Executive Director at CEX.IO

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 27th, 2021

Ethereum

Ethereum rallied by 9.11% on Monday. Following on from a 4.78% gain on Sunday, Ethereum ended the day at $2,533.99.

A mixed start to the day saw Ethereum fall to an early morning intraday low $2,306.03 before making a move.

Steering clear of the first major support level at $2,206, Ethereum rallied to a final hour intraday high $2,541.99.

Ethereum broke through the first major resistance level at $2,398 and the second major resistance level at $2,474 to wrap up the day at $2,500 levels.

At the time of writing, Ethereum was down by 0.97% to $2,509.51. A mixed start to the day saw Ethereum rise to an early morning high $2,550.00 before falling to a low $2,506.03.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 270421 Hourly Chart

For the day ahead

Ethereum would need to avoid the pivot level at $2,461 to support a run at the first major resistance level at $2,615.

Support from the broader market would be needed, however, for Ethereum to break back through to $2,600 levels.

Barring an extended crypto rally, the first major resistance level and last week’s swing hi $2,646.2 would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $2,700. The second major resistance level sits at $2,697.

Failure to avoid the $2,461 pivot would bring the first major support level at $2,379 into play.

Barring another extended sell-off, however, Ethereum should steer clear of sub-$2,200 levels. The second major support level at $2,225 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $2,379

Pivot Level: $2,461

First Major Resistance Level: $2,615

23.6% FIB Retracement Level: $2,041

38.2% FIB Retracement Level: $1,666

62% FIB Retracement Level: $1,061

Litecoin

Litecoin rallied by 10.43% on Monday. Reversing a 0.49% loss from Sunday, Litecoin ended the day at $247.65.

A mixed start to the day saw Litecoin fall to an early morning intraday low $221.25 before making a move.

Steering clear of the first major support level at $212, Litecoin rallied to a late afternoon intraday high $248.36.

Litecoin broke through the first major resistance level at $236.

Coming up against the second major resistance level at $249, Litecoin eased back to $237 levels before ending the day at $247 levels.

At the time of writing, Litecoin was down by 0.69% to $245.94. A mixed start to the day saw Litecoin rise to an early morning high $249.56 before falling to a low $245.78.

Litecoin left the major support and resistance levels untested early on.

LTCUSD 270421 Hourly Chart

For the day ahead

Litecoin would need to avoid the $239 pivot level to support a run at the first major resistance level at $257.

Support from the broader market would be needed, however, for Litecoin to break back through to $250 levels.

Barring an extended crypto rally, the first major resistance level and resistance at the 23.6% FIB of $262 would likely cap any upside.

In the event of a bounce back, Litecoin could test resistance at $270. The second major resistance level sits at $266.

Failure to avoid a fall through the $239 pivot level would bring the first majors support level at $230 into play.

Barring another extended sell-off, Litecoin should steer clear of the second major support level at $212. The 38.2% FIB of $217 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $230

Pivot Level: $239

First Major Resistance Level: $257

23.6% FIB Retracement Level: $250

38.2% FIB Retracement Level: $207

62% FIB Retracement Level: $138

Ripple’s XRP

Ripple’s XRP surged by 31.66% on Monday. Reversing a 1.88% fall from Sunday, Ripple’s XRP ended the day at $1.3650.

After a mixed start to the day, Ripple’s XRP fall to an early morning intraday low $1.01639 before making a move.

Steering clear of the first major support level at $0.9307, Ripple’s XRP jumped to a final hour intraday high $1.37241.

Ripple’s XRP broke through the first major resistance level at $1.1449 and the second major resistance level at $1.2573.

The day long rally also saw Ripple’s XRP break back through the 38.2% FIB of $1.2807 to end the day at $1.36 levels.

At the time of writing, Ripple’s XRP was up by 1.57% to $1.38645. A mixed start to the day saw Ripple’s XRP fall to an early morning low $1.34166 before rising to a high $1.39395.

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 270421 Hourly Chart

For the day ahead

Ripple’s XRP will need to avoid the 38.2% FIB of $1.2807 and the $1.2513 pivot level to bring the first major resistance level at $1.4861 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $1.40 levels.

Barring an extended crypto rally, the first major resistance level and resistance at the 23.6% FIB of $1.5426 would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at $1.70 levels. The second major resistance level sits at $1.6073.

Failure to avoid a fall through the 38.2% FIB and the $1.2513 pivot would bring the first major support level at $1.1301 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of sub-$1.00 levels. The second major support level sits at $0.8952.

Looking at the Technical Indicators

First Major Support Level: $1.1301

Pivot Level: $1.2513

First Major resistance Level: $1.4861

23.6% FIB Retracement Level: $1.5426

38.2% FIB Retracement Level: $1.2807

62% FIB Retracement Level: $0.8573

Please let us know what you think in the comments below.

Thanks, Bob

Bitcoin and Ethereum – Weekly Technical Analysis – April 26th, 2021

Bitcoin

Bitcoin, BTC to USD, slid by 12.54% in the week ending 25th April. Following on from a 6.43% decline from the previous week, Bitcoin ended the week at $49,129.0.

A bullish start to the week saw Bitcoin rise to a Monday intraweek high $57,500.0 before hitting reverse.

Falling well short of the first major resistance level at $63,834, Bitcoin slid to a Saturday intraweek low $47,112.0.

The sell-off saw Bitcoin fall through the 23.6% FIB of $50,473 and the first major support level at $49,505 to end the week at sub-$49,200 levels.

6 days in the red that included a 4.77% slide on Wednesday and 3.80 % fall on Thursday delivered the downside for the week.

For the week ahead

Bitcoin would need avoid a fall back through the $51,247 pivot to support a run the first major resistance level at $55,382.

Support from the broader market would be needed for Bitcoin to break back through to $55,000 levels.

Barring an extended crypto rally, the first major resistance level and last week’s high $57,500.0 would likely cap any upside.

In the event of an extended breakout, Bitcoin could test resistance at $60,000 before any pullback. The second major resistance level sits at $61,635.

Failure to avoid a fall back through the $51,247 pivot would bring the 23.6% FIB of $50,473 and the first major support level at $44,994 into play.

Barring another extended sell-off, Bitcoin should steer clear of the 38.2% FIB of $41,592. The second major support level sits at $40,859.

At the time of writing, Bitcoin was up by 7.43% to $52,779.0. A bullish start to the week saw Bitcoin rise from an early Monday morning low $48,831.0 to a high $53,161.0

Bitcoin left the major support and resistance levels untested early on.

BTCUSD 260421 Daily Chart

Ethereum

Ethereum rose by 3.59% in the week ending 25th April. Following a 4.23% gain from the previous week, Ethereum ended the week at $2,322.16.

A mixed start to the week saw Ethereum fall to a Monday low $2,050.0 before making a move.

Steering clear of the first major support level at $1,978, Ethereum rallied to a Thursday intraweek high and a new swing hi $2,646.2 before hitting reverse.

Ethereum broke through the first major resistance level at $2,526 before sliding to a Friday intraweek low $2,040.0.

Finding support at the 23.6% FIB of $2,041, Ethereum revisited $2,380 levels before easing back. A bullish end to the week, delivered the upside for the week, however.

4-days in the green that included a 4.76% rally on Sunday delivered the upside in the week.

For the week ahead

Ethereum would need to avoid a fall back through the pivot at $2,336 to bring the first major resistance level at $2,632 into play.

Support from the broader market would be needed, however, for Ethereum to break back through to $2,600 levels.

Barring an extended crypto rally, the first major resistance level and last week’s swing hi $2,646.20 would likely cap any upside.

In the event of an extended breakout, Ethereum could test resistance at $3,000 before any pullback. The second major resistance level sits at $2,942.

Failure to avoid a fall back through the pivot at $2,336 would bring the 23.6% FIB of $2,041 and the first major support level at $2,026 into play.

Barring an extended sell-off in the week, Ethereum should steer clear of sub-$1,800 levels. The second major support sits at $1,730.

At the time of writing, Ethereum was up by 5.35% to $2,446.51. A bullish start to the week saw Ethereum rise from an early Monday low $2,306.03 to a high $2,490.00.

Ethereum left the major support and resistance levels untested at the start of the week.

ETHUSD 260421 Daily Chart

The Crypto Daily – The Movers and Shakers – April 26th, 2021

Bitcoin, BTC to USD, fell by 2.03% on Sunday. Following a 1.91% fall on Saturday, Bitcoin ended the week down by 12.54% to $49,129.0.

A mixed start to the day saw Bitcoin break through the 23.6% FIB to strike an early morning high $50,563.0 before hitting reverse.

Falling short of the first major resistance level at $51,291, Bitcoin fell to a late morning low $49,164.0.

While steering clear of the first major support level at $48,942, Bitcoin fell back through the 23.6% FIB of $50,473.

Finding late morning support, however, Bitcoin broke back through the 23.6% FIB to hit an intraday high $50,671.0.

Continuing to fall short of the first major resistance level, Bitcoin slid to a late intraday low $47,112.0.

Falling back through the 23.6% FIB, Bitcoin also fell through the first major support level at $48,942 and the second major support level at $47,722.

Steering clear of sub-$47,000 levels, however, Bitcoin broke back through the major support levels to end the day at $49,100 levels.

The near-term bullish trend remained intact in spite of the latest reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Sunday.

Ethereum and Polkadot rallied by 4.78% and by 5.00% respectively to lead the way.

Binance Coin (+1.68%), Chainlink (+1.22%), and  Crypto.com Coin (+1.76%) also bucked the trend on the day.

It was a bearish day for the rest of the majors, however.

Bitcoin Cash SV (-1.82%), Cardano’s ADA (-1.18%), Litecoin (-0.49%), and Ripple’s XRP (-1.88%) joined Bitcoin in the red.

It was also a mixed week for the crypto majors.

Binance Coin and Ethereum rose by 4.81% and by 3.60% respectively to buck the trend in the week.

It was a bearish week for the rest of the crypto majors, however.

Bitcoin Cash SV and Ripple’s XRP slid by 29.49% and by 26.97% respectively to lead the way down.

Cardano’s ADA (-14.67%), Chainlink (-19.02%), Crypto.com Coin (-13.09%), Litecoin (-18.24%), and Polkadot (-8.64%) also struggled, however.

In the week, the crypto total market rose to a Monday high $2,100bn before sliding to a Friday low $1,648bn. At the time of writing, the total market cap stood at $1,832.

Bitcoin’s dominance rose to a Tuesday high 54.32% before falling to a Thursday low 50.03%. At the time of writing, Bitcoin’s dominance stood at 51.18%.

This Morning

At the time of writing, Bitcoin was up by 2.13% to $50,173.8. A mixed start to the day saw Bitcoin fall to an early morning low $48,831.0 before rising to a high $50,439.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Crypto.com Coin fell by 0.81% early on to buck the trend.

It was a bullish start for the rest of the majors, however.

At the time of writing, Ripple’s XRP was up by 5.25% to lead the way.

BTCUSD 260421 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall back through the $48,971 pivot to bring the 23.6% FIB of $50,473 and the first major resistance level at $50,829 into play.

Support from the broader market would be needed for Bitcoin to break out from $50,500 levels.

Barring an extended crypto rally, the first major resistance level and resistance at $51,000 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $53,000 before any pullback. The second major resistance level sits at $52,530.

Failure to avoid a fall back through the $48,971 would bring the first major support level at $47,270 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$45,000 levels. The second major support level at $45,412 should limit the downside.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 26th, 2021

Ethereum

Ethereum rose by 4.78% on Sunday. Partially reversing a 6.46% slide from Saturday, Ethereum ended the week up by 3.60% to $2,322.16.

Recovering from a late morning intraday low $2,166.00, Ethereum rose to mid-afternoon intraday high $2,358.22 before hitting reverse.

Ethereum broke through the first major resistance level at $2,339 before falling back to sub-$2,200 levels.

Steering clear of the first major support level at $2,126, Ethereum broke back through to $2,300 levels to end the day in the green.

At the time of writing, Ethereum was up by 0.23% to $2,327.50. A mixed start to the day saw Ethereum rise to an early morning high $2,330.91 before falling to a low $2,306.03.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 260421 Hourly Chart

For the day ahead

Ethereum would need to avoid the pivot level at $2,282 to support a run at the first major resistance level at $2,398.

Support from the broader market would be needed, however, for Ethereum to break out from $2,350 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $2,500 levels. The second major resistance level sits at $2,474.

Failure to avoid the $2,282 pivot would bring the first major support level at $2,206 into play.

Barring another extended sell-off, however, Ethereum should steer clear of sub-$2,000 levels. The second major support level at $2,082 and the 23.6% FIB of $2,041 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $2,206

Pivot Level: $2,282

First Major Resistance Level: $2,398

23.6% FIB Retracement Level: $2,041

38.2% FIB Retracement Level: $1,666

62% FIB Retracement Level: $1,061

Litecoin

Litecoin fell by 0.49% on Sunday. Following a 6.80% slide from Saturday, Litecoin ended the week down by 18.24% to $224.18.

After a mixed start to the day, Litecoin rose to a late afternoon intraday high $235.86 before hitting reverse.

Falling short of the first major resistance level at $238, Litecoin slid to a late intraday low $211.07.

Litecoin fell through the first major support level at $217 and the 38.2% FIB of $217.

Steering clear of sub-$200 support levels, Litecoin broke back through the first major support level and 38.2% FIB to end the day at $224 levels.

At the time of writing, Litecoin was down by 0.56% to $222.92. A mixed start to the day saw Litecoin rise to an early morning high $224.88 before falling to a low $221.25.

Litecoin left the major support and resistance levels untested early on.

LTCUSD 260421 Hourly Chart

For the day ahead

Litecoin would need to move back through the $224 pivot level to support a run at the first major resistance level at $236.

Support from the broader market would be needed, however, for Litecoin to break back through to $230 levels.

Barring an extended crypto rally, the first major resistance level and Sunday’s high $235.86 would likely cap any upside.

In the event of a bounce back, Litecoin could test resistance at $250. The second major resistance level sits at $249.

Failure to move back through the $224 pivot level would bring the 38.2% FIB of $217 and the first major support level at $212 into play.

Barring another extended sell-off, Litecoin should steer clear of sub-$200. The second major support level sits at $199.

Looking at the Technical Indicators

First Major Support Level: $212

Pivot Level: $224

First Major Resistance Level: $236

23.6% FIB Retracement Level: $250

38.2% FIB Retracement Level: $207

62% FIB Retracement Level: $138

Ripple’s XRP

Ripple’s XRP fell by 1.88% on Sunday. Following a 10.23% tumble on Saturday, Ripple’s XRP ended the week down by 26.97% to $1.03246.

After a mixed start to the day, Ripple’s XRP rose to a late afternoon intraday high $1.15555 before hitting reverse.

Ripple’s XRP broke through the first major resistance level at $1.1420 before sliding to a late intraday low $0.94139.

The sell-off saw Ripple’s XRP fall through the first major support level at $0.9928.

Steering clear of sub-$0.94 support levels, Ripple’s XRP broke back through the first major support level to end the day at $1.03 levels.

At the time of writing, Ripple’s XRP was down by 1.40% to $1.0180. A mixed start to the day saw Ripple’s XRP rise to an early morning high $1.04299 before falling to a low $1.01639

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 260421 Hourly Chart

For the day ahead

Ripple’s XRP will need to move through the $1.0431 pivot level to bring the first major resistance level at $1.1449 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $1.10 levels.

Barring an extended crypto rally, the first major resistance level and Sunday’s high $1.15555 would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at the 38.2% FIB of $1.2807. The second major resistance level sits at $1.2573.

Failure to move through the $1.0431 pivot would bring the first major support level at $0.9307 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of the second major support level at $0.8290. The 62% FIB of $0.8573 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $0.9307

Pivot Level: $1.4031

First Major resistance Level: $1.1449

23.6% FIB Retracement Level: $1.5426

38.2% FIB Retracement Level: $1.2807

62% FIB Retracement Level: $0.8573

Please let us know what you think in the comments below.

Thanks, Bob

ETH/USD Key Support Zone in Uptrend of Wave 4 Pattern

Ethereum (ETH/USD) is showing significant wicks on both sides of the daily candlesticks. The struggle between bulls and bears is, however, above the 21 ema zone in a strong uptrend (all moving averages are aligned).

Let’s review the daily and 4 hour chart to analyse whether the uptrend can continue.

Price Charts and Technical Analysis

Ethereum 25.04.2021 daily chart

The ETH/USD remains in a well established uptrend. Price action recently completed an ABC (grey) pattern in wave 4 (pink). After that, price action broke above the 21 ema zone for another bullish swing up:

  1. So far, the bullish swing is not yet completed because the AO bars on the daily chart are still far above the middle line of the oscillator. Price action has bounced from the 38.2% Fib to the -27.2% Fibonacci target.
  2. This means that price action seems to be in an ongoing wave 5 (pink) for the moment.
  3. Also, when reviewing price action, bulls seem determined to defend the support zone (green box), the trend lines (green), and 21 ema zone.
  4. A break below the 21 ema zone indicates the end of the wave 5 (pink) but not the end of the uptrend. Simply because price action is expected to bounce at the lower support levels.
  5. Only a very deep retracement places the uptrend on hold (orange circle) or invalidates it (red circle).
  6. An immediate breakout higher (green arrows) could indicate a push towards the -61.8% Fibonacci target around $3,000. A bull flag pattern (grey arrows) could confirm a shallow pullback to the previous top.

On the 4 hour chart, the roller coaster push up and down seem to be part of an ABC (orange) pattern in wave 4 (grey). Price action is now testing the 21 emas, which is a key decision zone for a breakout or bounce:

  1. A bullish breakout above the 21 ema zone should confirm an uptrend continuation (green arrow).
  2. The previous tops can create a bull flag (grey arrows) pattern. A break of that pattern indicates a full uptrend (green arrow).
  3. A minor pullback (orange arrow) to the support trend (green) could see a bounce (green arrow).
  4. A bearish breakout (dotted orange arrow) could indicate a deeper wave correction but the uptrend remains valid.

Ethereum 25.04.2021 4 hour chart

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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The Crypto Daily – Movers and Shakers – April 25th, 2021

Bitcoin, BTC to USD, fell by 1.91% on Saturday. Following on from a 1.17% decline on Friday, Bitcoin ended the day at $50,161.0.

A mixed start to the day saw Bitcoin rise to an early morning intraday high $51,201.0 before hitting reverse.

Falling short of the first major resistance level at $52,993, Bitcoin fell to a late morning intraday low $48,852.0.

While steering clear of the first major support level at $48,422, Bitcoin fell back through the 23.6% FIB of $50,473.

Finding late morning support, however, Bitcoin broke back through the 23.6% FIB to revisit $51,000 levels before easing back.

A bearish end to the day saw Bitcoin fall back through the 23.6% FIB to end the day at sub-$50,200 levels.

The near-term bullish trend remained intact in spite of the latest reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Saturday.

Crypto.com Coin rose by 2.70% to buck the trend on the day.

It was a bearish start for the rest of the majors, however.

Chainlink and Ripple’s XRP slid by 11.06% and by 10.17% respectively to lead the way down.

Binance Coin (-5.68%), Bitcoin Cash SV (-5.21%), Cardano’s ADA (-4.66%), Ethereum (-6.47%),  Litecoin (-6.77%), and Polkadot (-8.32%) also struggled.

In the current week, the crypto total market rose to a Monday high $2,100bn before sliding to a Friday low $1,648bn. At the time of writing, the total market cap stood at $1,787.

Bitcoin’s dominance rose to a Tuesday high 54.32% before falling to a Thursday low 50.03%. At the time of writing, Bitcoin’s dominance stood at 52.25%.

This Morning

At the time of writing, Bitcoin was up by 0.15% to $50,238.0. A mixed start to the day saw Bitcoin fall to an early morning low $5,0005.0 before rising to a high $50,273.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Polkadot was up by 0.25% at the turn of the day to buck the trend.

It was a bearish start for the rest of the majors, however.

At the time of writing, Crypto.com Coin was down by 3.22% to lead the way down.

BTCUSD 250421 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $50,071 pivot to bring the 23.6% FIB of $50,473 and the first major resistance level at $51,291 into play.

Support from the broader market would be needed for Bitcoin to break out from Saturday’s high $51,201.0.

Barring an extended crypto rally, the first major resistance level and Saturday’s high would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $53,000 before any pullback. The second major resistance level sits at $52,420.

Failure to avoid a fall through the $50,071 pivot would bring the first major support level at $48,942 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$47,000 levels. The second major support level at $47,722 should limit the downside.

The Crypto Daily – Movers and Shakers – April 24th, 2021

Bitcoin, BTC to USD, fell by 1.17% on Friday. Following on from a 3.80% loss on Thursday, Bitcoin ended the day at $51,138.0.

A mixed start to the day saw Bitcoin rise to an early morning intraday high $52,131.0 before hitting reverse.

Falling short of the first major resistance level at $54,632, Bitcoin tumbled to a late morning intraday low $47,560.0.

Bitcoin fell through the first major support level at $49,710 and the second major support level at $47,678.

More significantly, Bitcoin also fell through the 23.6% FIB of $50,473 before finding support.

Through the rest of the day, Bitcoin broke back through the major support levels and the 23.6% FIB to end the day at $51,100 levels.

The near-term bullish trend remained intact in spite of the latest reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was another mixed day on Friday.

Binance Coin (+4.42%), Cardano’s ADA (+1.35%), Chainlink (+0.06%), and Ripple’s XRP (+1.29%) bucked the trend on the day.

It was a bearish day for the rest of the majors, however.

Crypto.com Coin tumbled by 12.19% to lead the way down.

Bitcoin Cash SV (-6.75%) and Litecoin (-4.38%) also saw heavy losses

Ethereum (-1.22%) and Polkadot (-0.92%) saw relatively modest losses on the day.

In the current week, the crypto total market rose to a Monday high $2,100bn before sliding to a Friday low $1,643bn. At the time of writing, the total market cap stood at $1,839.

Bitcoin’s dominance rose to a Tuesday high 54.32% before falling to a Thursday low 50.03%. At the time of writing, Bitcoin’s dominance stood at 51.51%.

This Morning

At the time of writing, Bitcoin was down by 0.85% to $50,705.0. A mixed start to the day saw Bitcoin rise to an early morning high $51,201.0 before falling to a low $50,486.2.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Crypto.com Coin bucked the trend early on, rising by 2.16%.

It was a bearish start for the rest of the majors, however.

At the time of writing, Ripple’s XRP was down by 2.01% to lead the way down.

BTCUSD 240421 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the 23.6% FIB of $50,473 and the $50,276 pivot to bring the first major resistance level at $52,993 into play.

Support from the broader market would be needed for Bitcoin to break back through to $52,000 levels.

Barring an extended crypto rally, the first major resistance level and Friday’s high $52,131 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $55,000 before any pullback. The second major resistance level sits at $54,487.

Failure to avoid a fall through the 23.6% FIB and the $50,276 pivot would bring the first major support level at $48,422 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$47,000 levels. The second major support level sits at $45,705.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 24th, 2021

Ethereum

Ethereum fell by 1.22% on Friday. Partially reversing a 1.79% gain from Thursday, Ethereum ended the day at $2,370.05.

A mixed start to the day saw Ethereum rise to an early morning intraday high $2,442.29 before hitting reverse.

Falling short of the first major resistance level at $2,596, Ethereum tumbled to an early morning intraday low $2,060.00.

The sell-off saw Ethereum fall through the first major support level at $2,254 and the second major support level at $2,108.

Steering clear of the 23.6% FIB of $2,041, Ethereum broke back through the major support levels to end the day at $2,300 levels.

At the time of writing, Ethereum was down by 1.22% to $2,341.07. A mixed start to the day saw Ethereum rise to an early morning high $2,371.18 before falling to a low $2,337.23.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 240421 Hourly Chart

For the day ahead

Ethereum would need to avoid the pivot level at $2,291 to support a run at the first major resistance level at $2,522.

Support from the broader market would be needed, however, for Ethereum to break out from Friday’s high $2,442.29.

Barring an extended crypto rally, the first major resistance level and resistance at $2,600 would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at Thursday’s new swing hi $2,646.2. The second major resistance level sits at $2,673.

Failure to avoid a fall through the $2,291 pivot would bring the first major support level at $2,139 into play.

Barring another extended sell-off, however, Ethereum should steer clear of the second major support level at $1,909. The 23.6% FIB of $2,041 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $2,139

Pivot Level: $2,291

First Major Resistance Level: $2,522

23.6% FIB Retracement Level: $2,041

38.2% FIB Retracement Level: $1,666

62% FIB Retracement Level: $1,061

Litecoin

Litecoin fell by 4.38% on Friday. Following on from a 2.01% decline on Thursday, Litecoin ended the day at $241.67.

A mixed start to the day saw Litecoin rise to an early morning intraday high $257.07 before hitting reverse.

Falling short of the 23.6% FIB of $262 and the first major resistance level at $282, Litecoin slid to an early morning intraday low $207.10.

Litecoin fell through the first major support level at $232 and the second major support level at $211.

The sell-off also saw Litecoin fall through the 38.2% FIB of $217.

Steering clear of sub-$200, Litecoin broke back through the support levels and 38.2% FIB to revisit $243 levels before easing back.

At the time of writing, Litecoin was down by 1.44% to $238.20. A bearish start to the day saw Litecoin fall from an early morning high $241.79 to a low $238.06.

Litecoin left the major support and resistance levels untested early on.

LTCUSD 240421 Hourly Chart

For the day ahead

Litecoin would need to avoid the $235 pivot level to support a run at the 23.6% FIB of $262 and the first major resistance level at $264.

Support from the broader market would be needed, however, for Litecoin to break out from Thursday’s high $257.07.

Barring an extended crypto rally, the first major resistance level and 23.6% FIB would likely cap any upside.

In the event of a bounce back, Litecoin could test resistance at $280. The second major resistance level sits at $285.

Failure to avoid a fall through the $235 pivot level would bring the 38.2% FIB of $217 and the first major support level at $214 into play.

Barring another extended sell-off, Litecoin should steer clear of sub-$200. The second major support level sits at $185.

Looking at the Technical Indicators

First Major Support Level: $214

Pivot Level: $235

First Major Resistance Level: $264

23.6% FIB Retracement Level: $250

38.2% FIB Retracement Level: $207

62% FIB Retracement Level: $138

Ripple’s XRP

Ripple’s XRP rose by 1.29% on Friday. Partially reversing a 10.53% tumble on Thursday, Ripple’s XRP ended the day at $1.17113.

A mixed start to the day saw Ripple’s XRP rise to an early morning intraday high $1.19617 before hitting reverse.

Falling short of the first major resistance level at $1.3535, Ripple’s XRP slid to an early morning intraday low $0.86800.

The sell-off saw Ripple’s XRP fall through the first major support level at $1.0248 and the second major support level at $0.8936.

Steering clear of the 62% FIB of $0.8573, Ripple’s XRP broke back through the major support levels to end the day at $1.17 levels.

At the time of writing, Ripple’s XRP was down by 2.00% to $1.14776. A mixed start to the day saw Ripple’s XRP rise to an early morning high $1.17279 before falling to a low $1.14691.

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 240421 Hourly Chart

For the day ahead

Ripple’s XRP will need to avoid a fall through the $1.0784 pivot level to bring the first major resistance level at $1.2889 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from the 38.2% FIB of $1.2807.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at $1.40 levels. The second major resistance level sits at $1.4066.

Failure to avoid a fall through the $1.0784 pivot would bring the first major support level at $0.9607 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of the second major support level at $0.7503. The 62% FIB of $0.8573 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $0.9607

Pivot Level: $1.0784

First Major resistance Level: $1.2889

23.6% FIB Retracement Level: $1.5426

38.2% FIB Retracement Level: $1.2807

62% FIB Retracement Level: $0.8573

Please let us know what you think in the comments below.

Thanks, Bob

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 23rd, 2021

Ethereum

Ethereum rose by 1.79% on Thursday. Following from a 1.07% gain on Wednesday, Ethereum ended the day at $2,399.99.

A mixed start to the day saw Ethereum fall to an early morning low $2,317.25 before making a move.

Steering clear of the major support levels, Ethereum rallied to a late afternoon intraday high and a new swing hi $2,646.20.

Ethereum broke through the first major resistance level at $2,474 and the second major resistance level at $2,590 before hitting reverse.

The reversal saw Ethereum slide to a late intraday low $2,304.00.

Steering clear of the first major support level at $2,239, Ethereum bounced back to $2,400 levels before ending the day at $2,390 levels.

The first major resistance level at $2,474 had pinned Ethereum back late in the day.

At the time of writing, Ethereum was up by 1.36% to $2,432.74. A mixed start to the day saw Ethereum fall to an early morning low $2,371.18 before rising to a high $2,432.74.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 230421 Hourly Chart

For the day ahead

Ethereum would need to move through the pivot level at $2,450 to support a run at the first major resistance level at $2,596.

Support from the broader market would be needed, however, for Ethereum to break back through to $2,500 levels.

Barring an extended crypto rally, the first major resistance level and Thursday’s new swing hi $2,464.20 would likely cap any upside.

In the event of a breakout, Ethereum could test the second major resistance level at $2,792.

Failure to move through the $2,450 pivot would bring the first major support level at $2,254 into play.

Barring another extended sell-off, however, Ethereum should steer clear of sub-$2,200 levels. The second major support level sits at $2,108.

Looking at the Technical Indicators

First Major Support Level: $2,254

Pivot Level: $2,450

First Major Resistance Level: $2,596

23.6% FIB Retracement Level: $2,041

38.2% FIB Retracement Level: $1,666

62% FIB Retracement Level: $1,061

Litecoin

Litecoin fell by 2.01% on Thursday. Following on from a 1.18% decline on Wednesday, Litecoin ended the day at $252.65.

Recovering from an early morning low $251.46, Litecoin rallied to a late afternoon intraday high $289.80.

Litecoin broke through the first major resistance level at $273 and the second major resistance level at $288.

More significantly, Litecoin also broke through the 23.6% FIB of $262 before sliding to a late intraday low $239.68.

The sell-off saw Litecoin fall back through the resistance levels and the 23.6% FIB.

Litecoin also fell through the first major support level at $247 before revising $259 levels.

A bearish end to the day, however, saw Litecoin fall back to end the day at $252 levels.

At the time of writing, Litecoin was up by 1.45% to $256.32. A mixed start to the day saw Litecoin fall to an early morning low $250.40 before rising to a high $257.07.

Litecoin left the major support and resistance levels untested early on.

LTCUSD 230421 Hourly Chart

For the day ahead

Litecoin would need to move through the $261 pivot level and the 23.6% FIB of $262 to support a run at the first major resistance level at $282.

Support from the broader market would be needed, however, for Litecoin to break back through to $280 levels.

Barring an extended crypto rally, the first major resistance level and Thursday’s high $289.80 would likely cap any upside.

In the event of a bounce back, Litecoin could test resistance at $300. The second major resistance level sits at $311.

Failure to move through the $261 pivot level and the 23.6% FIB of $262 would bring the first major support level at $232 into play.

Barring another extended sell-off, Litecoin should steer clear of the 38.2% FIB of $217. The second major support level sits at $211.

Looking at the Technical Indicators

First Major Support Level: $232

Pivot Level: $261

First Major Resistance Level: $282

23.6% FIB Retracement Level: $250

38.2% FIB Retracement Level: $207

62% FIB Retracement Level: $138

Ripple’s XRP

Ripple’s XRP slid by 10.53% on Thursday. Following on from a 6.95% fall on Wednesday, Ripple’s XRP ended the day at $1.15592.

A mixed start to the day saw Ripple’s XRP rise to a late afternoon intraday high $1.41999 before hitting reverse.

Ripple’s XRP broke through the first major resistance level at $1.4090 before sliding to a late intraday low $1.09124.

The sell-off saw Ripple’s XRP fall through the first major support level at $1.2264 and the second major support level at $1.1627.

Ripple’s XRP also fell through the 38.2% FIB of $1.2807 to end the day at $1.16 levels.

At the time of writing, Ripple’s XRP was up by 2.55% to $1.18534. A mixed start to the day saw Ripple’s XRP fall to an early morning low $1.12243 before rising to a high $1.19117.

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 230421 Hourly Chart

For the day ahead

Ripple’s XRP will need to move through the $1.2224 pivot level to bring the first major resistance level at $1.3535 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from the 38.2% FIB of $1.2807.

Barring an extended crypto rally, the first major resistance level and Thursday’s high $1.41999 would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at the 23.6% FIB of $1.5426. The second major resistance level sits at $1.5511.

Failure to move through the $1.2224 pivot would bring the first major support level at $1.0248 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of the second major support level at $0.8936.

Looking at the Technical Indicators

First Major Support Level: $1.0248

Pivot Level: $1.2224

First Major resistance Level: $1.3535

23.6% FIB Retracement Level: $1.5426

38.2% FIB Retracement Level: $1.2807

62% FIB Retracement Level: $0.8573

Please let us know what you think in the comments below.

Thanks, Bob

The Crypto Daily – Movers and Shakers – April 23rd, 2021

Bitcoin, BTC to USD, fell by 3.80% on Thursday. Following on from a 4.77% slide on Wednesday, Bitcoin ended the day at $51,735.0.

A mixed start to the day saw Bitcoin fall to an early morning low $52,525.0 before making a move.

Bitcoin fell through the first major support level at $52,663 before rallying to a mid-day intraday high $55,500.0.

Falling short of the first major resistance level at $55,844, Bitcoin slid to a late intraday low $50,575.0.

The sell-off saw Bitcoin fall back through the first major support level at $52,663.

Bitcoin also fell through the second major support level at $51,545.

Coming within range of the 23.6% FIB of $50,473, Bitcoin revisited $52,200 levels before easing back.

While breaking back through the second major support level, Bitcoin came up short of the first major support level.

The near-term bullish trend remained intact in spite of the latest reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was another mixed day on Thursday.

Ethereum (+1.79%) and Polkadot (+1.45%) bucked the trend on the day once more.

It was a bearish day for the rest of the majors.

Ripple’s XRP slid by 10.53% to lead the way down

Binance Coin (-7.22%), Bitcoin Cash SV (-6.67%), Cardano’s ADA (-4.97%), and Crypto.com Coin (-5.58%) also struggled.

Chainlink (-3.43%) and Litecoin (-2.01%) saw relatively modest losses on the day.

In the current week, the crypto total market rose to a Monday high $2,100bn before sliding to a Thursday low $1,794bn. At the time of writing, the total market cap stood at $1,865.

Bitcoin’s dominance rose to a Tuesday high 54.32% before falling to a Thursday low 50.03%. At the time of writing, Bitcoin’s dominance stood at 51.63%.

This Morning

At the time of writing, Bitcoin was down by 0.14% to $51,665.0. A mixed start to the day saw Bitcoin rise to an early morning high $51,883.0 before falling to a low $51,321.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bearish start to the day.

At the time of writing, Crypto.com Coin was down by 9.45% to lead the way down.

BTCUSD 230421 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the pivot level at $52,603 to bring the first major resistance level at $54,632 into play.

Support from the broader market would be needed for Bitcoin to break back through to $54,000 levels.

Barring an extended crypto rally, the first major resistance level and resistance at $55,000 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $58,000 before any pullback. The second major resistance level sits at $57,528.

Failure to move through the $52,603 pivot would bring the 23.6% FIB of $50,473 and the first major support level at $49,707 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of the second major support level at $47,678.

Is Ethereum Still on Track for $2800?

In my article on Ethereum (ETH) from early last week, I found using the Elliott Wave Principle (EWP), “ETH should now be in red wave-v of black wave-3, which should ideally target $2340-2595, … once wave-3 completes -ideally- in the target zone, wave-4 should bring ETH back to around $2160+/-35. From there, wave-5 should target $2775+/-100 to finalize the larger blue wave-V. I then expect a retest of $1450+/-75, an almost 50% haircut, before the next significant, multi-month rally starts. See Figure 1 below.

ETH peaked at $2547 on April 16 for wave-3, declined to $1975 on April 18 for wave-4, and is now already making new all-time highs (ATHs), and wave-5 is gunning for $2700-2855. Thus, except for a lower wave-4 than anticipated ($2035-2190 was the target zone, see Figure 1, with $2160+/-35 ideally), ETH has so far followed the path I expected ten days ago -black dotted arrows- very well. It is simply impossible to be 100% accurate in a non-linear, stochastic environment, but this is the accuracy and reliability my premium crypto members take advantage of.

Figure 1. ETH daily EWP count and technical indicators.

The Rally to as High as $2860 is Now Underway

As you can see, once Fibonacci-based EWP target zones are reached, strong reactions occur, and ETH is no exception. Since the $1975 low did not overlap with the wave-1 high at $1941 on March 13, the standard impulse pattern is alive and well because, in a motive wave, the 1st and 4th waves are not allowed to overlap. Thus, as ETH is now on its way to the ideal $2700-2855 target zone, which it can overshoot, it is time to look at the technical indicators. As you can see in Figure 1, the red dotted arrows show ETH is moving higher on A) less strength: lower daily RSI5 readings, B) less momentum: lower daily MACD readings, and C) less liquidity: lower Money Flow readings. These divergences fit with a rally that should peak soon before a much larger correction is expected.

Bottom line: The rally to new ATHs is underway as anticipated, and ETH has adhered rather well to the Fibonacci-based EWP path I outlined early last week. Thus $2775+/-100 should still be doable, with an ideal target zone of $2700-2855. Once reached, I expect a sharp multi-week decline back to the critical support at around $1400+/-100, an almost 50% haircut before ETH is ready to stage its next multi-month rally, ideally to $4500+/-500. A move and close below this week’s low at $1975 from current levels or higher will signal this deep correction is underway.

For a look at all of today’s economic events, check out our economic calendar.

Using Alternative Assets to Build a Balanced Portfolio

However alternative assets tend to be what your banker wouldn’t recommend you to invest in because they’re not easily accessible, or it’s hard to get good guidance on what to do with them.

Because these investments aren’t as popular, they are often less liquid or are required to be held for longer before returning a profit. However, it could easily be debated if these assets are less liquid because they are alternative, or if they are labelled alternative because they are less liquid. In any event, the specific types of assets that are most often put in this category include private equity, venture capital, hedge funds, real estate, collectables and commodities. As well as the rising ecosystem of digital assets such as cryptocurrencies, Decentralized Finance tokens and NFTs which in some ways would also be considered ‘alternative’.

How Do These Investments Manage Risk in a Portfolio?

Diversification has always been at the heart of portfolio risk management. A well-diversified portfolio is one with a mix of assets and a mix of asset classes. The broader the diversity, the lower the risk involved. For example, investing in the public equity and bond market, as well as some real estate, has often been touted as being a solid strategy for diversification.

When you invest in the public market, you only have access to public companies. However, a lot of returns are to be found elsewhere, in the private market. In that market, you find upstarts big and small and it has been a hunting ground mostly reserved for the Venture Capitalists (VCs) and Private Equity (PE) firms. Unfortunately, the costs associated with running a VC or PE fund means that these firms only raise big tickets from wealthy investors. Hence, getting access to the private markets is difficult for many. The good old 60% equity, 40% bonds rule offers some diversification but can’t protect a portfolio against systemic market risk, as it is still 100% invested in the markets.

Digital Assets Can Bolster Diversification

For decades, hedge funds have looked for an asset class that can shield from such systemic risk problems, an asset uncorrelated by the volatility in the wider market. Many feel that cryptocurrency and the new use cases offered by blockchain technology are the answer to the above problems.

Some cryptocurrencies represent a new breed of young companies seeking to disrupt entire sectors of the economy such as you would typically find in the private markets. Others offer entirely novel use cases, and their valuation as such might offer better protection against traditional market risk. Most of these come with the added advantage of being highly liquid, as even some of the smaller digital assets still trade in the tens of thousands of dollars per day. On top of this, virtually all of them are available from very small amounts, such as less than €1, which enables even retail investors to build a diversified portfolio.

Parameters to Look at for Alternative Investments

There are of course still a variety of parameters you need to consider for each asset and asset class to know whether you should add them to a portfolio. We’ll go through each of these now:

Returns

How much of a return of investment are you likely to see, if any, with a given asset class over the period you are looking at investing for. For example, equity markets have returned 8% to 10% between 1926 and 2019. Meanwhile, the bonds market returned between 4 and 6% in the same timeframe.

Risks

What is the loss you are theoretically exposing yourself to with a given asset class over the period of time you are looking at investing for? It may look like equities are more interesting than bonds based on returns, but a portfolio with 100% equities could have lost as much as 43.13% in a given year between 1926 and 2019. There were, in fact, 26 out of those 94 years that represented a loss for equities. For a portfolio with 100% bonds, the worst year was only 8.13%, and only 14 out of 94 years had a loss. If you want to be sure to have your money in 4 years, equities might be a little too risky, meaning volatile, for your needs.

Liquidity

This is addressing how easily you can convert these investments into cash, meaning sell them. This is essential when looking at asset allocation. Say you need money in 5 years as you are planning on buying a house. In that event, it’s probably best not to invest that money with a Venture Capitalist who says any potential profits won’t come back to you before 10 years. In this scenario, while you might then be “paper rich” after 5 years, you still won’t be able to use any of that money for the house because you can’t sell your shares to anybody. Equities, on the other hand, can be traded fairly quickly and easily, on average.

Correlation to Other Assets and Asset Classes

For most of the past two decades, a negative correlation with equity has meant U.S. Treasury bonds have acted as a hedge when stock markets tumbled. So bond prices tended to rise when equities prices fell, and balanced portfolios suffered smaller losses than portfolios with 100% equity. The idea is that you want diversity across assets that aren’t all correlated. If you have a basket of investments that always rise and fall together, your returns will look more or less the same as they would if you had, say, gone all-in on any one of them.

Price

Looking at the unit price of the assets you’re interested in is also key to properly diversifying. If you had €5’000 to invest, for example, you probably wouldn’t want to purchase a single share of Amazon priced at €3’000, as this would immediately be over 50% of your portfolio and make further diversification fairly difficult. However, cryptocurrency, as mentioned can be bought in very small units, easily under €50, or even €1.

If you can find an asset or asset class that you can afford, is liquid enough for your investment horizon, has a return and risk profile that works with your goals, and is as un-correlated as possible to the rest of your portfolio, then you have likely discovered a solid opportunity.

A look at historical returns, with data

To emphasize the point we are trying to make, here are 3 simulated portfolios from 26 September 2019 to 12 February 2021, based on actual past performance of the IWDA ETF as well as a portfolio managed by the OSOM Crypto Autopilot.

Each line simulates investing €1000 a month the first month then €500 a month the following months.

  • In black, the line shows the portfolio growth if that money is “invested” in a savings account. With a final amount of €9000
  • In red, the line shows the portfolio growth if that money is invested 100% in IWDA, an index ETF tracking the MSCI World. Final value is €10,543.14
  • In blue, the line shows the portfolio growth if that money is invested 90% in IWDA, and 10% in the OSOM Crypto Autopilot basket. Final value is €13,592.69

As you can see, putting just 10% into a well-curated portfolio of crypto assets over that time period allows you to see 28.92% more returns as opposed to using just traditional assets. While it is true, this comes at a cost of increased exposure to risk, but the absolute worst that could happen to the crypto part of your portfolio is that it would go to 0. Even in this unlikely event, it would still only affect 10% of your overall holdings. Considering an expected return on equity investment of 8% – 10% p.a., you’d make up for that loss in about a year using your traditional asset portfolio.

The Benefits Are Clear

While there are many, many strategies out there for diversification, it cannot be overlooked how useful alternative assets can be in mitigating overall risk. Of all alternative assets out there, cryptocurrencies stand somewhat unique in their liquidity, accessibility and diversification inside of their own class. While going “all in” on crypto is a much more dangerous game, we have shown how allocating a modest 10%, or whatever makes sense for your investment goals, can have notable positive effects on your portfolio valuation over time.

About The Author
Anton Altement is CEO of Polybius and OSOM Finance. Prior to starting OSOM, Altement spent close to a decade with Credit Suisse as an investment banker in London and Zurich. He is focused on building a currency-agnostic ecosystem to facilitate the convergence of fiat and crypto.

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