Zcash (ZEC)
$30.93 (1.85 %) View coin |
Blockmason Credit Protocol (BCPT)
$0.015174 (3.61 %) View coin |
Veros (VRS)
$0.142007 (1.75 %) View coin
Newsletter
22 October 2018

3 coins to keep an eye on | Issue #13

Hello everyone!

Bitcoin continues to wander through a no man’s land as volume slowly dissipates as traders search for more rewarding plays in other altcoins and markets.

Many traders may find it difficult to justify shorting at the support which has held all year long. However, no undeniable signs of reversal are yet showing - leaving most longer-term traders on the sidelines as conflicting signals appear for different trading strategies.

Even shorter term traders may be beginning to find it difficult to play this range with any certainty. The weekly candle printed last week shows us a long wick covering approximately 15% of the price, which presumably annihilated stop-losses for many bears looking to build longer-term shorts or scalp the current range.

Technically, this wick does paint a higher high, giving some reason to believe a bullish reversal is nearer. It can also be seen by some as a bearish swing failure pattern (SFP), encouraging some to enter the market with shorts.

The safest thing to do in the near future may be to sit on the sidelines of the Bitcoin chart and instead look to capitalize on shorter-term altcoin plays. With this consideration, here are three coins with events in the coming week listed on CoinMarketCal which show some short-term promise - and also potentially long-term hope - for bulls.

@tradeprophet


Zcash (ZEC)

Zcash (ZEC)

Price
123.66 USD (-1.27 %)
0.01908914 BTC (-0.62 %)

Market Cap
626 589 968 USD
96 723.00 BTC

Volume (24h)
90 809 993 USD
14 017.82 BTC

Trade
Binance

One week ago, ZEC printed a swing low. This low created a double bottom in the shorter term, and also coincides with the low in December 2017 just before the season’s bull run.

This double bottom creates a break in the market structure of the downtrend which has lasted for nearly all of 2018, which suggests that the downtrend is weakening. Additionally, the Ichimoku cloud in early November is exceptionally thin when compared to the rest of the year. This not only supports the notion that the downtrend is weakening but also offers some hint as to when a breakout could happen.

Also supporting a breakout in the relatively near future are two falling wedges containing price, which close by the end of the year. The more times that price taps the edge of a wedge without breaking through it the more likely it is that price will break out from the opposite side of the wedge - in this case, up.

The double bottom formed in the last month respected the wedge’s lower boundary, and on the second tap saw an aggressive entry from bulls as shown by the long lower wick. It seems likely that the wedge’s upper boundary will now be tested near the same place we see the thinning cloud, offering potential for price to break out.

A breakout from this region is likely to find support on the cloud and resistance from the second, longer-term falling wedge. However, this offers shorter-term traders plenty of opportunities to capitalize on this week’s event - the long-awaited Sapling Network Upgrade, which is projected to occur by next Sunday at block 419200. Longer-term investors may see this as a chance to enter near the beginning of a trend reversal for Q4 2018 and beyond.


Blockmason Credit Protocol (BCPT)

Blockmason Credit Protocol (BCPT)

Price
0.110623 USD (0.40 %)
0.00001708 BTC (0.88 %)

Market Cap
9 169 007 USD
1 415.00 BTC

Volume (24h)
1 181 524 USD
182.39 BTC

Trade
Binance

Six weeks ago, BCPT’s price abruptly bounced and began an uptrend which has thus far been confirmed with multiple touches. Price has increased at a relatively gentle angle, suggesting that this may be a ramp caused by larger players accumulating for a future breakout.

The shorter-term EMAs on the guppy indicator has completely crossed over the longer-term “investor” EMAs. This signifies that the recent increase in price is likely more than just a bounce, and quite possibly a complete trend reversal on a longer timeframe.

The guppy’s investor EMAs are still highly compressed, which can be read to indicate that investors are not buying into this recent move up en masse just yet - but they are also no longer selling into the rally.

Currently, price is consolidating under the bearish orderblock during which consolidation took place before the last significant bearish impulse in early August. Consolidation under resistance is typically a bullish sign, and often leads to an abrupt breakout through the resistance.

Drawing trendlines of the current consolidation (including most wicks) paints us a bullish pennant which is due to close late this week or early next week.

Shorter term traders may look to play bounces from the edges of the pennant, while longer-term traders may be taking positions near the bottom of the pennant in anticipation of the breakout through the overlying resistance.

Using CoinMarketCal to screen for hot events, we can see that BCPT is scheduled to be listed on a new top 25 (by CoinMarketCap volume) exchange this Thursday. Exposure to a larger group of traders and investors is likely to not only cause intraday moves up in price during this week, but also increase BCPT’s potential for longer-term growth.


Veros (VRS)

Veros (VRS)

Price
0.018147 USD (4.17 %)
0.00000280 BTC (4.28 %)

Market Cap
331 942 USD
51.00 BTC

Volume (24h)
12 861 USD
1.99 BTC

Trade
Livecoin

September marked a relatively stable accumulation zone for VRS, with one massive spike downward according to CoinMarketCap’s price data.

Since then, the price has increased nearly 14x from the bottom of this wick in a powerful move upward. The quick move up has caused some profit taking at the EQ (for “equilibrium”, or the center) of the last bullish weekly candle printed during the most recent downtrend. This profit taking is creating a consolidation zone - a  bull flag.

Traders looking for short-term intraday traders may be able to profit from trading the extremes of the current bull flag’s range. Looking longer term, a bull flag typically breaks out upward. The next nearest weekly EQ is nearly double the current price - at a level which gives a reasonable risk-reward depending on stop-loss placement.

The recent uptrend demand line, when drawn from the bottom of the wick created by September’s downward spike, should be hit by the current consolidation zone near the end of this week. This gives us a probable deadline for a breakout.

However, the partnership agreement this Thursday shown on CoinMarketCal could provide a breakout catalyst before price encounters this trendline. Longer-term, we can see several more significant VRS events in November. These make it more likely that the uptrend will continue and reduce the risk for investors attempting to catch a trend reversal.

News
03 February 2020
Decentralizing Zcash
“All networks that claim they will ‘decentralize governance later,’ will have to walk a similar path to the one Zcash’s been walking.” – Chris Burniske Funding public goods is hard. Funding an open-source zero-knowledge proof cryptocurrency is even harder. This is the new spin on the classic common...
Newsletter
09 December 2019
3 coins to keep an eye on | Issue #59
Despite BTC's respectable 9.67% range up to $7,772 during the last week, bears rejected the move upward to reclaim the weekly level. The high around $7,632 was still 1.26% short of the previous weekly high at $7,870, creating a lower high and beginning the pattern for a bearish pennant. As Bitcoin starting hinting at a bea...

3 coins to keep an eye on 👀