USD/JPY in symmetrical pennant, bullish engulfing candle on WTI [Video]
Yesterday we pointed out an opportunity to buy the DJIA and we hope you took advantage.
The S&P 500 and the NASDAQ both have passed resistance and reached all-time highs but the DJIA still has room to move to the upside.
We can see from the 4-Hour chart that “Buying the Dip” is a good strategy with the ADX showing a strong uptrend, but the Stochastic Oscillator is showing overbought so you may want to wait for a pullback before going long.
Price action on WTI broke this descending triangle that we spotted last week and we now see price trying to break the upper trend line on the October contract.
ADX is showing us a strong uptrend but the Stochastic Oscillator is showing overbought so we may want to wait for a pullback here as well.
However, if we look at the Daily chart, we see this Bullish Engulfing Candle which covered the previous 2 days of price action, and a clear break of the upper trend line.
Yesterday we pointed out the strength of the Canadian Dollar and it seems to be a fundamental story with the price of Crude Oil and great Retail Sales figures helping CAD.
On USDCAD, for example, the Stochastic Oscillator is showing oversold but, should price action continue down, we have a key level in the $1.259 area.
We also note that this level is the 38.2% Fibonacci level.
And finally, we will be watching this Symmetrical Pennant on USDJPY but both the Stochastic Oscillator and ADX are giving us no clue on direction.
Bitcoin Price Analysis: On-Chain Showing Strong Accumulation, Will Weekly Close Breach $50k?
The battle for $50k continues as the bitcoin price is trading above and below the key level.
On Friday, September 3rd, 2021, Bitcoin successfully made the first daily close above the $50k mark since May, a sign of strength for the bulls. Trading volume came in 36% above average on Coinbase, indicative of strong spot buying. In addition, BTC short liquidations came in below average, indicating the recent price rally was spot-driven rather than short covering.
BTC printed a bullish engulfing candle on the above 3-day chart with a close above $50k, breaking out of the green zone of support between $46k to $48.1k. Since the engulfing candle was printed, the bitcoin price remained around the $50k level consolidating during the ongoing weekend trading.
On-chain Remains Bullish
The aggregate on-chain data remains bullish, strongly suggesting further upside for September. Spot exchange reserves remain at multi-year lows. Miners continue to accumulate with minimal outflows to exchanges and falling transaction count outflows, while aging groups of coins that realized profit during parts of the recent rally are back in accumulation.
UTXO Age Distribution Showing Long Term Holders Accumulating
CryptoQuant on-chain analysts Gaah Cordeiro and I, Daniel Joe, recently covered the UTXO Age Distribution metric, to analyze how the aging groups of long-term and short-term holders are behaving.
In late July 2021, throughout the rally from $29.2k to $42k, the age distribution metric shows holder of coins around 3 to 5 years old taking a profit. As this group continued to age, we can see that selling cooled off, and accumulation resumed within August.
During August, 2 to 3-year-old coins slowly took profit as BTC tested $50k. Recently, as aging continues, this cohort now appears to be back in accumulation with a slight uptick shown in the chart.
12-18 Month Old Holders Partially Sold Lows: Now Back in Accumulation
The 12 months to 18-month-old coins showed interesting activity as this group appears to have sold the initial leg down when BTC was falling back in May 2021.
A portion of this particular group of coins was accumulated during the March 2020 crash, where BTC fell from $10k to $3.8k as global markets faced the March 13, 2020 liquidity crisis. It is possible this cohort could have been worried about another March 2020 event and panic sold.
After the May 2021 plunge to $30k, the 12-18 months old coins aged and steadily showed accumulation as BTC consolidated between $30k to $40k and pushed higher towards today’s prices of around $50k.
Short-Term Holders Sold the Bottom
Looking at short-term holders, the chart below shows 1 month to 6-month-old coins were selling while BTC was consolidating between $30k to $40k as larger entities accumulated. This group of holders accumulated during the huge rally up to $64.8k and panic sold near the bottom at a loss.
Going forward, it will be important to watch the 3 to 6-month cohort closely as these coins are slowly aging, which will start to include the BTC accumulated in the $30k to $40k range.
Overall, it is bullish to see the selling from coins older than 12 months cool off with a return to accumulation. This behavior can be verified by the temporary spike in age spent output bands, a metric tracking the age of coins being moved. So far, the data show no signs of major whale selling turning into a trend, which further invalidates the BTC bears call of a bull trap.
With the weekly close coming up, market participants will closely watch to see if BTC can weekly-close above $50k, marking another major step forward in bull market continuation.
IOTA Coin Insane Bullish Momentum Hits $2 Mark, Is $3 Will be Next Target?
IOTA coin Projecting a solid comeback of bulls over the monthly chart, with strong volume activity.
The crypto asset at the chart is placed above all vital moving averages of 20, 50, 100, and 200-day lines; with recent buying action, a positive crossover is also seen.
The pair of IOTA /BTC is trading on a strong bullish note with an intraday gain of +16.85% at 0.00003659 BTC, and the ratio of IOTA /ETH is dealing with a good increment at 0.0004704 ETH with a 24-hour change of +17.48%.
tradingview
IOTA coin at the monthly chart is trading on a strong bullish note with insane growth from the lower levels. The crypto asset has formed a bullish engulfing candle at the monthly chart and given a strong breakout over the previous day’s highs. Moreover, the tremendous growth over the volume part is also seen, which helps bulls hit the $2.00 mark after a long time horizon.
The technical parameters also reach the overbought zone, and the pullback should be utilized for the new entry. The sustainability above major DMA lines of 20, 50, 100, and 200-day will create more positive momentum until $3.00. Support on the lower side is at $1.4500 and $1.2430, whereas resistance on the higher side is $2.1425 and $2.45.
IOTA coin at the weekly chart is facing pullback from the higher side
tradingview
IOTA coin at the weekly chart is currently facing pullback from the higher side, after a strong bullish rally from lower levels. The technical parameters also reach the overbought zone, and the pullback can be used to make a new entry. Volume action over the 4-hour chart is still needed to grow to sustain on the higher side. Currently, the coin is trading at $1.79 with an intraday gain of +13.82%, and the volume to market cap ratio is at 0.1546.
ADVERTISEMENT
Relative Strength Index (CAUTION): IOTA coin RSI presently indicates a slight caution after a strong bullish trend over the weekly chart. In contrast, the RSI is heading lower after testing the overbought zone and CMP at 67.
Moving Average Convergence Divergence (CAUTION) indicates a caution on the daily chart. This is because the buyer’s buyer’s signal line (blue) overpowers the seller’s line (red), heading towards the seller’s line of negative crossover.
Support levels: $1.4500 and $1.2430
Resistance levels: $2.1425 and $2.45.