Analysis of the main crypto currency rates for October 1, 2017
Over the past week, the correlation between bitcoin and the remaining crypto-currencies from the TOP-10 (by capitalization) has decreased, but nevertheless the dynamics of the kriptonka leader's rate still strongly influences the movement of the main pairs.
Bitcoin
Traditionally, we will begin our review with BTС / USD. So, globally there are two medium-term scenarios for the development of events:
Scenario 1: double zigzag correction
As can be seen from the markup according to the EWA rules, the first variant of the development of events assumes a deep correction by a double zigzag, where the first three waves of the ABC are a corrective zigzag, the same wave W; the second three are the bundle waves, they are the wave X; the third three - the final corrective wave Y. The arguments in favor of this markup:
waves w and x consist of 3 waves of a smaller wave level;
wave w is smaller than wave x;
double zigzag is a deep correction most often occurring after a strong impulse movement (1-3-5 on the chart).
Fundamental arguments:
correction to the level indicated on the markup, coincides with the forecast of analysts Goldman Sachs (if the forecasts of bankers regarding crypto currency can be considered an argument);
at the end of November, we expect the adoption of the Segwit2x community or split the network into two separate blockhouses, which can create unpredictable sentiment in the market;
The "sword of Damocles" of financial regulation continues to hang over the market, despite the rapid "digestion" of news from China, the potential ban of crypto-instruments in other large economies of the world will entail another strong blow at the rate of bitcoin.
The most possible and fitting into the global picture is the "scenario # 2":
Scenario 2: Global Wave 5
This markup is a detailed continuation of the markup given in the previous review. Markup assumes that the correction is over, and globally we are in the fifth impulse wave of growth, which began on September 15, 2017. At the moment, wave 3 (of smaller wave order) is being constructed, the ending of which can update the price maximum. Smaller wave orders - on the graph. Arguments in favor of this markup:
all the basic rules for constructing a wave pulse are observed;
The MACD histogram indicates the construction of an upward trend;
the breaking through of an isosceles triangle (accompanied by an increased volume) did not reach the target price. The target price is 5100 - 5200 $.
Isosceles triangle
Scenario 2: Global Wave 5
Fundamental arguments:
the market experienced a panic correction very quickly, capitals migrated to countries more loyal to crypto-currencies, which confirms the strength of the asset and the flexibility of investors;
interest in blocking technology in all sectors of the economy continues to grow. Constantly appears more and more news about the possible integration of crypto-currencies in all sorts of spheres;
regulation. Yes, in this context it is a huge plus. For example, Japan issued licenses to 11 crypto-exchange exchanges. The market begins to grow, becomes more understandable and acceptable to conservative investors, the arrival of which will bring new financial injections in unpredictable scales.
The probability of scenario 2 development prevails over the possibility of deep correction "by Goldman Sachs".
Ethereum
Until recently, the ether showed a strong correlation with bitcoin, but the situation begins to change. While the BTC has broken through its main resistance levels, it does not work for ETH:
On the chart of the timeframe for 4 hours, a potential upward triangle is formed - a strong growth formation. If the resistance breaks at $ 316, it is very likely that the target price will reach $ 425. This triangle is a continuation of the triangle described in the review for 24.09.
Fundamental growth factors:
the prohibition of ICO in China, and a possible ban in Korea is easily managed by investors, in addition, it is not forbidden to participate in foreign projects. Therefore, ICO as one of the engines of the ETH price continues to work;
the introduction of the metropolis's harthing can give a new round of price development;
the introduction of the network Raiden will allow to carry out more micropayments, in other words - to scale the Etherium. Scaling has been discussed in the community for several years, and the decision will have an exceptionally positive impact on the course.
DASH
The situation for this pair is very much like the situation on ETH \ USD:
A potential upward triangle is formed with a decrease in volume as the figure is formed. Bulls still do not have enough strength to break through strong resistance at $ 369. The level of support on the chart is not exact, the figure is still being formed. The potential for breaking through the resistance will be seen on the sharply increasing volume of trades.
News background DASH after the conference in London is similar to calm, so we can conclude that the penetration level of 369 dollars will occur only with a general bullish trend of the whole market.
Lightcoin
The graph of "digital silver" is very similar to that of other major altcoys.
Main conclusions:
the LTC rate is still correlated with BTC, but to a lesser extent;
Charlie Lee is constantly working to improve and develop technology;
Against the backdrop of investors' refusal from BCH, lightcoyin is gaining momentum due to its higher technological potential.
Litecoin has the strongest growth potential (in percentage terms) when the market moves into a stable bullish trend and breaks the resistance at $ 57. The first target in the region is $ 71, the global target is the renewal of the historical maximum.
Discuss and put the likes