On the agenda today, an analysis of the market that has grown in recent days since 15/12, and also a small analysis of the different cryptos that could well be the big winners if growth returns to the market. Enjoy!
As you may have noticed, a growth of 28% appeared in less than 4 days. Indeed, even if we had talked about this support of $3200 as being solid, after such a rebound pushing the price so quickly and so high, it was not really our first option.
So, how far can this go?
In fact, a probable hypothesis would be to see a configuration of: shoulder head shoulder reversed. So it's true that we like to find them, but for the simple reason that they are by far one of the most validated chartist configurations (we're talking about 80%... so we can take it seriously).
Here's a video on Trading View representing the configuration of shoulder head shoulder reversed.
When we take the BTC graph in 8h horizon, we see quite clearly a first shoulder and the head that is currently being formed.
In the case where the neck line is well reached, we could therefore see the second shoulder form, whose amplitude could be estimated at the same level as the first shoulder with a bottom in the $3600, and which would close the configuration and then allow growth to be considered. The neck line is here in the $4,300 area.
In the event that this configuration is confirmed, we could see an increase to the long-term solid resistance of $6,200 directly or in two steps with a first rebound on the resistance as often happens. In terms of amplitude of the configuration, it is interesting to note that the amplitude of the head would then be almost equivalent to that between the neck line and the neck lens.
There may be chance, but seeing elements like this is always encouraging in technical analysis. And every trader likes to see coincidences... that's a certainty! Even if to hear some coincidence on it is often to sell just before it goes up....
So if this configuration is confirmed, we could have as you guessed a trend... bullish (finally, a bullish configuration!) But we'll have to confirm it and we're not out of the woods yet.
To be honest, and because I've been asked several times already, I would consider that a real recovery, a real bullish trend will start if we touch up the... $8000.
It is true that choosing between the different alts and majors is not necessarily easy and our list is actually several dozen cryptos, but not much more, because we prefer to base ourselves on concrete facts for the next rally rather than on "projects".
1 - ZIL
The first is ZIL. And yes, it is one of the cryptos that investors often talk about.
Why? Because they have the technology with them. They succeeded during their stress test to have more than 2828 transactions on the blockchain per second. It is undoubtedly one of the best at this level especially because it manages to maintain itself at this level thanks to its innovative technology and its "transaction sharding".
Another reason for our interest in Zil is that they should move from Ethereum to their own mainnet at the beginning of 2019, which could give Zil even more weight.
From a technical point of view, Zil is currently trading at 1.7 cents and seems to have hit a bottom with the rest of the market on December 15. The technical indicators are green and it is not unthinkable to reach the 3.3cents soon. In any case, this is our objective, which represents an increase of more than 81%.
2 - TRX
The second one is obviously TRX. If from a technical point of view, we are also in a configuration similar to that of ZIL, we could soon have a new rally on TRX and why not, supported by its fundamental which continues to be good. And it's also thanks to its founder Justin Sun, who is very active and provides us with a lot of information on progress via his twitter account. Recently, he again posted an image stating that TRX had exceeded 100 million transactions. Is it important? Yes, because it shows the use of TRX and its adoption in terms of daily transactions.
This represents more than 2million transactions, 9.6x more than BTC or 4x more than Ethereum. And the reason is also the fees.
Indeed, while fees fell to 0.1% on December 14, Justin Sun recently stated that he had recently reached fees of 0 by December 21. There is no need to say, if this is the case, it becomes even more interesting for TRON and for all those using this blockchain. If this continues in this direction and its adoption continues to grow, it would not be impossible to see TRX reach 0.5 cents against the current 1.7 cents, or even $1 in a more distant future, but the road is still long. In any case, it is on our list and we have high hopes for this value.
3 - XRP
The third value today is Ripple. Yes, we know that it is not an ideologically speaking crypto, but as an investor, it remains interesting and to be taken into account. From a technical point of view, XRP has shown some resilience recently against Bitcoin after approaching its long-term support of 26cents, obviously far from the $3.5 reached in January.
Ripple also continues to enjoy a positive fundamental situation.
Whether it is through the adoption of Ripple by the UAE exchange (exchange of the United Arab Emirates), but also in South Korea and Malaysia through its Ripplenet system.
Another key new element is the partnership with GMT, Israel's largest financial services company, which will use ripple for these international payments.
In the event that Ripple manages to break the 50cents, this rather solid resistance, we would have as objective to reach the 0.76 cents, to exceed the dollar and to reach 1.5$ at first. Even if exceeding the ATH seems complicated in the medium to long term, we would not be surprised to review this level in 2019 or 2020.
4 - BNB
The last crypto of this short list is Binance Coin. From a technical point of view, BNB is currently struggling a little bit. Binance Coin, used to pay the fees of the Binance platform, in the first place, has obviously suffered from the decline in trading volume in recent months. Because less trade means less fees. Fewer fees means fewer uses of BNBs. Less use of BNB is.... a lower price for BNB... and a lower price for BNB is... a lower price, you understand.
However, from a fundamental point of view, BNB is heavy and BNB is much more than a corner for fees.
In addition to regularly burning BNB tokens to reduce the number of them, and this thanks to their benefit, Binance, the exchange which is ultimately the largest in terms of volume in the world, will normally launch their own decentralized exchange (DEX) in early 2019. This obviously causes a lot of excitement and buzz in the market. The other important point is that BNB will migrate from the ETH platform to their own blockchain, which will be called the Binance Chain.
The idea of a decentralized exchange will facilitate the multiplication of trading pairs (on BTC ETH but also pairs on TRX or NEO for example.
Another interesting point is that Binance recently announced the addition of a new feature that may well benefit institutional investors. Indeed, it will soon be possible to create sub-accounts on Binance and therefore establish different accounts, each with their own investment profiles.
In addition to this, BNB is starting to be more and more accepted on booking sites, online stores, etc. Binance frequently updates the list directly on their website. So don't hesitate to check if you have BNBs and want to be able to use them on the Internet.
In terms of objective, we are optimistic about the future of Binance Coin, which should be able to reach levels of $10 initially and then $13, $16 or $20 again in 2019.
See you soon for a new analysis !