Showing posts with label Ethereum. Show all posts
Showing posts with label Ethereum. Show all posts

January 08, 2018

Digital Currencies are too volatile. Is there a way to fix that?

By Guest Author - January 05, 2018 (cointelegraph.com)


The common question most people pose when they are confronting the idea of Bitcoin is: “what is its fundamental value?” Lay people don’t know how to approach Bitcoin, and they definitely don’t know how to value it. For many, it simply becomes a bet based on the supposition the price will continue to go up.

In recent weeks, what many believe to be irrational exuberance has bid the price up higher and higher to the point where a market correction seemed necessary. Every asset needs some form of sustainable value support and Bitcoin still hasn’t found one yet.

A potential solution is being put forward

A new idea that has emerged from China is A-SDR. This is an anchoring mechanism that serves to connect digital currencies to the real world. A-SDR consists of Ethereum, Bitcoin and ACC, and its goal is to stabilize the prices of digital currencies by tying them to real-world goods.

The idea of A-SDR came from a recent innovation by the International Monetary Fund (IMF).  The IMF’s goal was to take the world from a dollar-centric system to an SDR-centric monetary system. SDR stands for “Special Drawing Rights,” and the goal is for it to become the standard of circulation and settlement for global currencies.

ACC is the token that fuels the ACChain system and is anchored by holding title to real-world assets. The value of ACC will continue to rise as more digital assets are issued, and its share of A-SDR will continue to increase until it dwarfs those of Ethereum and Bitcoin.

ACC stands for Asset Collection Coin, and it has been created to fill the need which has been felt by all the critics of Bitcoin who see the value in digital monetary innovation but would prefer to hold tangible wealth. By holding title to real-life assets, ACC represents the combination of tangible asset ownership and digital currencies.

Collaborative effort

BTC and ETH are not anchored to real assets, which is where their volatility comes from. Rapid changes in price have made it so they cannot be used as a digital settlement currency globally. ACC will act as the connector of these digital goods to the real world and will have an exchange rate that is continually revised.

Bitcoin and Ether both have their purposes and these will not be eliminated by the coming of ACC. ACChain aims to work with the existing technology rather than competing against it. The A-SDR is a collaborative effort to harness all the good that can be experienced into one cohesive ecosystem, and buying ACC is the best way to get in on that goal right now.

Through anchoring digital gold reserve BTC and ETH with A-SDR, ACC then becomes equipped with four currency functions. These functions are the ability to scale value, means of circulation means of storage and means of payment. Basically, ACC is set to evolve into the standard token for anyone who wants to settle global digital assets. The future is bright for both ACC and A-SDR, but this also helps the performance of Bitcoin.

The future is in tangible assets that can be digitally controlled

Bitcoin is aided by the development of A-SDR because of the support that is provided by ACC. Bitcoin will be able to become a true and generally accepted digital gold, just as ACC will become accepted as the settlement digital coin in global asset trading.

ACChain is the platform which will be used to monetize goods with ACC, and every time a good is monetized, the demand for ACC will go up. This increase in demand will naturally lead to an increase in the price of the good.

When you purchase ACC via the A-SDR fund, you are helping to bootstrap ACChain to a higher profile, as well as making it more and more likely that Bitcoin becomes viewed as a digital gold. We are about to see what happens when you link hard, ownable assets with infinitely divisible digital currencies. With stability as a goal and both Ether and Bitcoin experiencing high volatility, investors are going to find huge appeal in the idea of ACC and the A-SDR funds.

December 14, 2017

What is a Smart Contract?

Smart Contracts - Part 1: What is a Smart Contract?


  • A great video explaining Smart Contracts at the level of detail/abstraction a novice could understand.

By Kevin Healy - August 10, 2017 (www.youtube.com)

An introduction to smart contracts in ethereum. What accounts are in a simpler currency only blockchain, how ethereum introduces a second type of account: a code controlled account (aka smart contract). This type of account does not have a private key but instead is controlled by code. It can store ether, just like user accounts, or it can keep a balance of 0 and be used to deliver some other function within the context of an application. Also, examples of how you can use smart contracts.

Part 2: https://www.youtube.com/watch?v=TC-bDQZbXd0



November 27, 2017

Ethereum Foundation confirms Proof Of Stake 75 Percent complete

November 27, 2017 (cryptocoinview.com)


At the Taipei Ethereum Meetup, Vitalik Buterin, one of the co-founders and lead developers of Ethereum, revealed that the development of a proof of stake protocol for the Ethereum network is 75 percent complete.

Prior to the announcement of Buterin, in a recent interview, Ethereum Foundation member and Ethereum co-founder Hudson Jameson released the foundation’s official roadmap for Ethereum development in 2017. The roadmap included the foundation’s plans of releasing the next version of Ethereum called Metropolis in three to six months and following that update with a switch of consensus protocol from proof of work to proof of stake.

Vitalik Buterin reaffirmed the Ethereum development roadmap laid out by Jameson and emphasized that Ethereum will most likely switch to a proof of stake protocol by the end of 2017. At the Taipei Ethereum Meetup, a community of over 500 members that focuses on the discussion of Ethereum and blockchain innovation, Buterin stated:

“We are working on a daemon that actually interacts with a Casper [smart] contract and sends transactions to it. That is the first part. The second stage is that we will write clients that are aware of Casper contracts.”

PoS is different in the way that it considers stakeholders as the majority and it does not utilize the hash power of miners to verify or confirm transactions. In a PoS protocol, miners do not exist. The largest stakeholders in the network are forced to play by the rules and verify transactions.

Ultimately, the economic issue of switching to Casper or a PoS protocol comes down to the incentives for stakeholders. How stakeholders are incentivized or benefited for verifying and confirming Ethereum transactions.

The Ethereum Foundation and Buterin’s perception of a PoS system is that everyone within the protocol is technically a miner and therefore unless they choose to lose their stake of Ether by playing against the rules, every user will verify and confirm transactions in a fair manner. Essentially, the foundation and its developers believe this is the ultimate decentralized governance system that increases participation of stakeholders of the network.

November 24, 2017

Bitcoin price holds above $8,250 despite Ethereum, Bitcoin Cash surges

By Josiah Wilmoth - November 24, 2017 (www.cryptocoinsnews.com)


The Thanksgiving leftovers have been neatly packaged and stored away in refrigerators across the U.S., but investors will not be receiving any Black Friday discounts in the cryptocurrency markets this year. The three largest cryptocurrencies advanced in unison today, with the bitcoin price holding above $8,250 even as ethereum and bitcoin cash raced past significant milestones.

Source: CoinMarketCap

Against this backdrop, the total cryptocurrency market cap extended its record-setting streak. Having surged past $250 billion for the first time the previous day, the crypto market cap added more than $5 billion on Friday, bringing its new total to a present value of $258.7 billion.

Source: CoinMarketCap

Bitcoin Price Weathers the Storm


Ever since the post-SegWit2x cancellation bitcoin cash pump, there have been rumors that BCH advocates would mount another rally — perhaps on November 23, when U.S. investors and traders would be less active in the markets due to the Thanksgiving holiday. That theory was proved correct, though not to the degree that many expected.

The bitcoin cash price climbed nearly $600 — from $1,200 on Wednesday to $1,800 on Thursday — before pulling back to a present value of $1,658. This nevertheless represents an eight percent day-over-day increase and brings the BCH market cap to $27.9 billion.

Bitcoin Cash Price Chart | Source: CoinMarketCap

However, contrary to the last bitcoin cash pump, this one did not come at the expense of bitcoin. The bitcoin price did give investors a brief scare by temporarily falling below the $8,000 mark, but it quickly recovered and actually tested its all-time high on several exchanges.

Bitcoin Price Chart | Source: CoinMarketCap

At present, the bitcoin price is trading at a global average of $8,260, which translates into a $137.9 billion market cap.

Ethereum Price Reaches Record $420


Bitcoin’s resilience is even more impressive given that bitcoin cash was not the only top-tier cryptocurrency that threatened to funnel capital away from bitcoin to fuel its own surge. The ethereum price mounted a rally of its own, punching through the $400 level for the first time since June. The ethereum price ultimately rose as high as $425 — a new all-time high — and is currently trading just below that level, at $420.

Ethereum Price Chart | Source: CoinMarketCap

Ethereum now has a market cap of $40.3 billion, giving it a $12.4 billion edge on bitcoin cash.

Other Markets Take a Holiday


The remainder of the top 10 was surprisingly quiet on Friday, with four cryptocurrencies moving less than one percent and just one venturing past the two percent marker.

Source: CoinMarketCap

That asset was IOTA, whose price plummeted by 18 percent following an extended — if uneven — rally. The IOTA price is now $0.734, which translates into a market cap just above $2 billion and drops IOTA to ninth in the market cap rankings.

Posted by Josiah Wilmoth
Josiah is a former ancient and medieval literature teacher. He has been writing about cryptocurrency since 2014, and his work has been cited in Business Insider, NPR, and Yahoo! Finance. He lives in rural North Carolina with his wife and son. Email him directly at josiah.wilmoth(at)cryptocoinsnews.com.

November 16, 2017

Bitcoin price pierces $7000

November 16, 2017 (www.forex-ratings.com)

The cryptocurrency market cap reached a new all-time high on Wednesday amid a generally-bullish day of trading. The bitcoin price set the tone for the rally, surging nearly $500 to recover past the $7,000 threshold for the first time since its weekend correction.

The total cryptocurrency market cap entered the day at $208 billion, and it climbed gradually throughout Tuesday evening. On Wednesday morning, the rally began to acquire steam, enabling the crypto market cap to leap to a new all-time high of $217.1 billion.

Bitcoin Price Pierces $7,000


The bitcoin price posted a 7% recovery on Wednesday, enabling it to climb nearly $500 in the past 24 hours alone. Since November 12, when the bitcoin price briefly crashed as low as $5,519, the flagship cryptocurrency has recovered by approximately $1,500, bringing it ever closer to the high-water mark it set last week shortly after the SegWit2x hard fork was called off. The bitcoin price is now trading at a global average of $7,004, which translates into a $116.8 billion market cap.

Several factors have contributed to this rally, most notably the fact that Man Group, one of the world’s largest hedge funds, stated yesterday that the launch of bitcoin futures contracts will convince it to make bitcoin part of its “investment universe”. However, traders are likely also bullish on the fact that mobile financial services application Square Cash is testing bitcoin integration and has already rolled the feature out to some users.

Ethereum Price Tests $340


The ethereum price continued its slow — but steady — advance on Wednesday, climbing another 3% to a present value of $338. Ethereum now has a market cap of $32.3 billion, bringing the second-largest cryptocurrency to its highest point since mid-October.

Bitcoin Cash Price Retreats


Bitcoin and bitcoin cash have taken inverse trajectories in recent days, and that phenomenon repeated itself — in direction if not degree — on Wednesday. While bitcoin and nearly every other major cryptocurrency experienced gains against the dollar, the bitcoin cash price declined 4%, reducing it to a current value of $1,289. Bitcoin cash has a market cap of $21.7 billion, making it approximately two-thirds the size of ethereum.

Market Swells at the Seams


Wednesday marked one of the most comprehensive crypto market advances in recent weeks, with 88 of the top 100 cryptocurrencies ending the day in positive territory.

The ripple price increased by 2%, while the litecoin price added 6% to rise to $65. The dash price recovered by 5% following Tuesday’s pullback and is now trading at $437. NEO’s 6% increase enabled it to broach the $30 barrier once again, and the monero price rose 1% to $124.

The competition for the last two spots in the market cap top 10 has been fascinating to watch this month, as no cryptocurrency has been able to cement its place in this echelon of the rankings. Today, IOTA burst into the ninth spot with a 19% increase, while NEM maintains the 10th position with a 3% gain. That makes ethereum classic, now ranked 11th, the odd token out.

November 11, 2017

Ethereum continues improvements amid Bitcoin bickering

By Jon Buck - November 11, 2017 (cointelegraph.com)


The cryptocurrency world is in a fuss about Bitcoin and rightly so, with the cancellation of the SegWit2x hardfork and the sudden drop in pricing by nearly $1000 per BTC. However, the price drops and news has kept Bitcoin in the limelight while Ethereum has slowly been making improvements and growing its network.

The second largest market cap coin has seen substantial use cases arise as the ICO world continues to flourish and new ERC20 and ERC223 tokens are created. Recent reports by the Ethereum Foundation indicate that Ethereum processed 44 percent more transactions than the Bitcoin Blockchain, showing the power of the Ethereum system.

Further, the total number of pending transactions for Ethereum has been stable between 30 and 300, while the same figure for Bitcoin has fluctuated anywhere from 39,000 to 47,000.

Quantum protection


The ZK-SNARK protocol, released on the Ethereum platform with the Byzantium hardfork, was quickly criticized by some tech insiders because of its risk of attack from quantum computers. While some had posited that the Ethereum fork would produce a Wall Street adoption boom, the risk from quantum computers has kept adoption steady.

A recent paper by Ethereum founder Vitalik Buterin indicates, however, that a new protocol called the ZK-STARK has been conceptualized in order to protect a full zero-knowledge transaction, even from quantum computing. This protocol relies only on hashes and information theory, rather than the ‘trusted setup’ of its ZK-SNARK cousin.

The upgraded anonymity, while perhaps necessary for such applications as public or fiscal Blockchain transactions, does come at a data cost - from 288 bytes to a few hundred kilobytes according to Buterin. However, in fields where anonymity is paramount, the additional data would provide something that no other system to date can accomplish - fully secure and fully anonymous transactions.

With the rise in transaction volume, the increased speed of transactions, and burgeoning technology use cases, Ethereum may be poised for greater market growth in the coming months.

November 08, 2017

Thanks to another bug in Parity, a user accidentally freezes up to a million of other people’s Ether

By Christoph Bergmann - November 08, 2017 (btcmanager.com)


Lightning never strikes in the same place twice? No way! After a Bug in the multisig contract of Parity caused Ethereum users to lose around $30 million in July, history repeats itself; another bug freezes ether with a value of $150-300 million on November 7.

As often with Ethereum, it is not so easy to understand what just happened. Parity announced on its blog that they discovered a critical bug. They found a vulnerability in the “Parity Wallet library contract of the standard multi-sig contract.” All users, which used this contract to store digital assets since July 20, are profoundly affected.

If we dig deeper into the story, it gets adventurous. There has been a library contract, which could be transformed into a standard multisig wallet and get possessed by any user. One person did this, by accident, and activated the “suicide” function of the contract. The mishap wiped out the whole code of the library, which turned every single multisig contract which used the library unusable.

In other words, every single digital asset, be it ether, be it some token, can’t be moved. How much value is affected, cannot be said for certain. A list estimates around 500,000 ether, some social media chatter mentions one million ether. According to Parity, the circulating numbers can’t be confirmed. But it’s not the worst bet to say that at least $100 million and at worst more than $300 million are destroyed. A significant part of it is the Polkadot funds, which have been collected by Parity itself.

What exactly happened? And how, and why? The precise explanation is bold. Christoph Jentzsch of Slock.it helped via Twitter to understand what happened on November 7 with Parity.


With the programming language Solidity, you can write smart contracts for Ethereum. One of these contracts is the multisig contract, which allows for defining the rule that funds on the contract can only be transferred if a given number of parties signs a transaction. Thanks to the flexibility of Ethereum’s smart contract system, you can customize these contracts way more freely than with Bitcoin. For example, the standard multisig contract of the main client Geth allows you to define a threshold of an amount, which can be transferred daily, and only when it is exceeded, a second party is needed to co-sign.

So far, so good. However, the Parity wallet created a library contract for the multisig contract. Like other libraries you know from other software, this helps to reduce complexity in the application by referring to a shared library of code. In itself, it is not a bad idea. But Parity made this library itself a contract on the Ethereum blockchain. And like every contract, it has a state, which can only be altered under given rules.

The problem was that these rules had a bug. The bug allowed any user to deploy a certain function which made him the possessor of the contract. As such, he was able to change the state. So did the user devops199, according to himself, by accident. This was the first part of the disaster.

The second part begins with that Ethereum contracts can have a “suicide” function. This enables them to kill itself, which has its merits, for example, when the contract is broken or just no longer needed, and you want to purge it from the blockchain. However, it can also have devastating consequences. Devops199 activated the suicide function on the Parity multisig library contract. As he says, just for fun, and without the intention of destroying anything. So the suicide function wiped the whole code inside the library contract.

The users needed some time to realize what had happened. The state of the multisig contracts, with which Parity users stored assets, is unaffected. It still contains the whole fund. However, when you try to change the state of these contracts, they refer to the library contracts to execute a function, like a transfer. And since the library contract has no longer any content, the multisig contracts are unable to execute any function. Every single asset, which has been stored with the Parity multisig contract, is frozen.

The only option to recover the funds would be a hard fork which changes the state of the library contract; if this is possible without creating another Ethereum Classic or doing severe harm to Ethereum’s reputation, is doubtful. Hence, some in the community are for such a hard fork; some are against. Maybe Ethereum has to bite the bullet, this time, and perhaps this is part of a blockchain’s coming of age.

November 02, 2017

The Slippening: Ethereum price falls to 7-month low against Bitcoin

By Josiah Wilmoth - November 02, 2017 (www.cryptocoinsnews.com)

The ethereum price has plunged to a seven-month low against the value of bitcoin.


Ethereum Price Falls to 7-Month Low Against BTC


The past two months have been disappointing for ethereum investors. Since nearing $400 at the beginning of September, the ethereum price has demonstrated an inability to mount a sustained rally past $300, even as bitcoin has achieved all-time highs on an almost weekly basis.

Ethereum did make some movement on Thursday, but it was not in the direction investors would prefer. The ethereum price fell 6% as traders liquidated their holdings to add more fuel to bitcoin’s bull run, temporarily forcing it below $280 although it has since recovered to about $290.

Source: Bitfinex


However, the situation appears far more dire after examining the ETH/BTC price trend. It is no secret that bitcoin has been consolidating its position as the dominant cryptocurrency; at present, bitcoin controls nearly 63% of the total crypto market cap, and that number has been steadily rising over the past few weeks. However, ethereum came dangerously close to achieving the “Flippening” — raising its market cap above that of bitcoin and becoming the largest cryptocurrency — so one might have expected it to prove to be more resilient than the legion of altcoins with much smaller market caps. This has not been the case.

ETH Price Chart (USD & BTC) | Source: CoinMarketCap

At present, ethereum is trading at approximately 0.04 BTC. The last time ethereum was valued so low against the price of bitcoin was the last week of April, when the ethereum price was just $50. Moreover, it is roughly one-fourth of ETH/BTC’s all-time high, which topped out at close to 0.16 BTC in mid-June.

Hope on the Horizon


Nevertheless, while ethereum’s short-term performance has fizzled, investors have reason to remain bullish on the platform’s long-term prospects. Though overshadowed by the massive bitcoin price rise, this week’s Devcon3 conference will likely shed some light on the cryptocurrency’s future.

On Wednesday Vitalik Buterin laid out a multi-year roadmap that explains some of the issues facing the platform — most notably scalability — and how developers intend to address them. Moreover, Vlad Zamfir released a draft of a whitepaper for Casper, the proof-of-stake consensus mechanism that developers have been previewing for some time now. Many of the projects that are being discussed at Devcon3 will take months or years to accomplish, so it is too early to predict when the ethereum price will turn a corner. However, current investors should continue to look to the future with optimism.

Featured image from Shutterstock.

Posted by Josiah Wilmoth
Josiah is a former ancient and medieval literature teacher. He has been writing about cryptocurrency since 2014, and his work has been cited in Business Insider, NPR, and Yahoo! Finance. He lives in rural North Carolina with his wife and son. Email him directly at josiah.wilmoth@cryptocoinsnews.com.

October 29, 2017

Price Analysis, October 28 - Bitcoin, Ethereum, Bitcoin Cash, Ripple and Litecoin

By Rakesh Upadhyay - October 29, 2017 (cointelegraph.com)


The number of hedge funds which exclusively trade digital currencies has grown to 120, with about $2.3 bln in total assets under management, according to the financial research firm Autonomous Next.

While it sounds like a large number, it pales in comparison to the $3.15 tln managed by the hedge fund industry in the third quarter.

Cryptocurrencies have attracted only a small number of institutional investors because most still remain skeptical. The latest criticism comes from legendary investor Warren Buffet, who has said that Bitcoin is in bubble territory.

Well, a correction after such a stupendous rally is certainly possible. Therefore, we always recommend a stop loss to our readers. Even if the digital currencies correct sharply, our losses will be limited and our capital will be preserved. We can again reinvest at lower levels.

BTC/USD


We had recommended long positions in Bitcoin in our previous analysis, with our target objective being $6000. On Oct. 27, the digital currency hit a high of $5986, where hopefully traders would have booked partial profits as suggested. Where is Bitcoin headed next?  


Bitcoin is currently correcting towards the trendline support at $5600. Just below this support is the 20-day exponential moving average (EMA) at $5513. We expect buying to emerge at these levels, however, we are not certain that this level will hold this time.

Our stops at $5650 have been hit. We would like to sit back and wait, because if the support zone of $5513 to $5600 breaks, the digital currency will slide to $4975 levels.

On the other hand, if the support zone holds then Bitcoin is likely to remain range-bound between $5600 to $6000. However, the next buy on the virtual currency will only be triggered if it breaks out to new highs and crosses the resistance line of the ascending channel.

Presently, we don’t find any buy setups, therefore, we don’t not recommend any fresh trade on Bitcoin.

ETH/USD


We don’t have any existing positions or recommendations on Ethereum. The bulls and the bears are taking a break after the hugely volatile day on Oct. 22.


Ethereum has a slew of resistances from $300 to $315 levels. Therefore we recommend a long position only on a breakout, and close above $315 with a close stop loss. The first target is $353.

On the downside, it has support from the trendline at $280, below which it is likely to fall to $272 and thereafter to $252 levels.

At current levels we don’t find any buy setups on Ethereum, hence we do not suggest to trade on it.

BCH/USD

We had observed some buying in Bitcoin Cash but we did not recommend any trade because the risk to reward ratio was not favorable. Do we see a trade on it now?


The cryptocurrency is currently returning from the upper end of the range at $400. The 50-day simple moving average is also at $398. Therefore, we expect a stiff resistance at $400 levels.

However, if the digital currency breaks out of this overhead resistance, it has a pattern target of $518.

Hence, we can buy on a breakout and close above $400. We shall limit our risk by keeping a stop loss of $350. We don’t want to hang on to the trade if it falls back into the range.

However, if Bitcoin Cash fails to breakout and close above $400, it is likely to remain range bound for a few more days.

XRP/USD


Both the buyers and the sellers seem to have deserted the digital currency in the past three days, as a result of which, the volatility has shrunk. However, this period of low volatility is unlikely to sustain for a long time. We should soon see an expansion in volatility.


If Ripple breaks out of the moving averages, it should attempt a pullback to at least $0.23955 levels, which is the 50 percent Fibonacci retracement of the fall from $0.29699 to $0.18211. If the virtual currency breaks out of this level, then a rally to $0.25311 and $0.27241 is also possible.

Therefore, we recommend a long position at $0.22 with a stop loss of $0.19650. As this is a risky trade, we suggest using only about 30 percent of the usual allocation.

However, if the cryptocurrency fails to breakout on the upside, it can drift down to $1.8211 levels.

LTC/USD


Litecoin has not been able to breakout of the range of $44 to $57.7. Therefore, our buy levels were not triggered.  


The 50-day SMA is situated at $55.59, while the 20-day EMA is at $56.57. Just above the moving averages is the upper end of the range at $57.729. If the digital currency breaks out of all these resistances, chances are that it will start a new uptrend.

Therefore, we retain our buy recommendation provided in our previous analysis. Please buy on a breakout and close above $57.7. The stop loss is $51, whereas the target objective is $71.

If Litecoin fails to breakout of the overhead resistance, it will fall back towards the $52 levels.

October 21, 2017

Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin - Price Analysis, October 21

By Rakesh Upadhyay - October 21, 2017 (cointelegraph.com)






Only a few months back, the market capitalization of the whole cryptocurrency universe crossed the $100 bln mark. Now Bitcoin alone has crossed the $100 bln mark.

In doing so, it has increased its dominance to 58.5 percent, a level last seen in May this year. This shows that money is pouring into Bitcoin, whereas altcoins are getting hammered.

At some point in the near future, once the leader tires out, other popular coins are likely to offer an excellent buying opportunity.

Is Bitcoin nearing a top? Are altcoins ready to follow the leader? Let’s find out.

BTC/USD


Bitcoin is on fire. It has been consistently rising for the past two days. Can this rally continue? We don’t have any existing positions in Bitcoin, should we establish one at the current levels?


Bitcoin has reached a critical resistance level from the channel line. It has not been able to breakout of this channel since June of this year. A breakout of the ascending channel gives it a target of $8000, equal to the depth of the channel. However, this level is unlikely to be reached in the short-term. Therefore, we have to work with intermediate targets.

The breakout from the range of $5391.4 to $5875 gives the cryptocurrency a minimum target objective of $6359. If this level is crossed, then the next possible level is $6845.

Our higher targets will be invalidated if the virtual currency turns down from the current levels.

As the risk to reward ratio is not attractive, we don’t recommend any fresh trade. However, investors carrying positions from lower levels should keep a stop loss of $5600.

Once Bitcoin breaks out and sustains above the channel, the stops can be raised to about $5800 levels and then trailed higher.

On the downside, $5875, the earlier resistance, will act as a strong support.

ETH/USD


Ethereum has been falling for the past six days. However, we expect it to hold the $275 to $286 zone, which has served as a strong support for the past month and a half.


We don’t recommend buying on the way down. We should wait for the next day or two to confirm that the support zone is holding, because a break of this support can sink Ethereum to $252 levels.

If, however, the support holds, the digital currency is likely to trade in a range for a few days, then attempt to start a new uptrend.

Presently, we don’t find any buy setup, therefore we don’t suggest any trade on Ethereum at the moment.

BCH/USD


While Bitcoin is roaring ahead to new highs, Bitcoin Cash has not found any buying support from the bulls. However, selling has subsided, which has resulted in small range days.


Presently, the digital currency is attempting to hold the $282 to $300 support zone. If Bitcoin Cash breaks this level, it will sink towards lows of $190.

On the other hand, a breakout of $400 will signal a change in trend. Therefore, we recommend a long position only at $410, with a stop loss of $350. The target objective is $530.  

XRP/USD


We don’t hold any positions in Ripple. The digital currency is currently attempting to hold the $0.20 levels. However, buying interest has declined following the sharp reversal from $0.3 levels.


If Ripple breaks below $0.2, it’s likely to fall towards $0.15 levels, where we recommend to initiate long positions because it has not broken down of $0.145 on a closing basis since June this year. However, this trade should be taken on the way up, after Ripple confirms a bottom. Please don’t try to catch a falling knife and enter when the cryptocurrency is falling. The stop loss can be kept $0.126.

On the other hand, if the virtual currency holds the $0.2 levels, it will again attempt to rally towards $0.3. But, we don’t find a reliable set up to trade this. Hence we don’t recommend a long position until Ripple falls to $0.15 levels and holds it.

LTC/USD


On Oct. 18, though Litecoin fell to $53 levels, it quickly climbed back higher and closed above $57.7. It has since then managed to stay above this support level. However, presently the cryptocurrency is threatening to fall into the range once again.


If Litecoin breaks below $57 and is unable to climb back quickly, it will invalidate the current bullish setup.

However, if the cryptocurrency finds support at the current levels and turns up, a long position can be initiated at $63. The stop loss for the trade can be kept at $55 and the profit objective is $71.


The views and opinions expressed here are solely those of authors/contributors and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

* BTC/USD, ETH/USD and LTC/USD market data is provided by the HitBTC exchange.