Investtech launches cryptocurrency analyses

Published January 18, 2018

Too big to ignore

The total value of the world’s cryptocurrencies was c. 4,000 billion NOK Wednesday morning, according to coinmarketcap.com. Bitcoin alone was valued at about 1,400 billion NOK, after falling 45 per cent since the high in December. In comparison all stocks on the Oslo Stock Exchange are worth a total of approximately 2,500 billion NOK.

Consequently, the cryptocurrency market cannot now be ignored.

Market driven by psychology and herd behaviour?

Cryptocurrencies and the reason for their value may be hard to understand. Many are skeptical of these products, while others are very optimistic. Investtech is of the opinion that fundamental conditions do not matter much in the cryptocurrency market. Investor psychology, though, centered around fear and greed, is very important. This makes technical analysis a valuable tool.

High demand

In the last few months interest in the cryptocurrency market has gone through the roof. We are asked on a daily basis when we will offer analyses of cryptocurrencies on our platform. We believe that Investtech’s algorithms are well suited to analyses of cryptocurrency market movements and are now launching analyses of the top 300 cryptocurrencies.

Objective analyses are important in a high risk market

Investtech does not encourage trading in unregulated markets, but we note that many crypto investors could benefit from setting aside their own emotions and market influences when trading. We think that Investtech’s independent and algorithmic analyses can be very useful in order to gain an objective view of the cryptocurrency market.

Sell Bitcoin

The price for Bitcoin reached a high of 19,000 dollars in mid-December. Fear of restrictions or bans causes uncertainties. Many investors have seen high returns and are tempted to secure their profits. After a steep fall earlier this week, triggered by negative investors pushing the price down to find buyers for their coins, support at 12,500 was broken downwards and a sell signal was triggered. The rising trend has been broken. Very high volume on falling prices indicates aggressive sellers who want to get rid of their coins. Continued fall is indicated.

Sell everything?

Investtech calculates optimism indices, called hausse indices, to measure market breadth. For the cryptocurrency market, the long term hausse index was 99.3 points on Monday, when only 2 out of 289 cryptocurrencies were negative. This is an extremely high value and a clear signal that the market is overheated and euphoric. When this changes, it may signal that a long term high has been reached and a negative period is about to begin. Following the very high price increase of recent months, it will take time before the long term charts reflect this. However, the short term hausse index now shows dramatic development. It reversed Monday, down to 86 points. Tuesday it fell to 56 points, Wednesday morning it was down to 46 points and today, Thursday, it is at 42. A shift this dramatic is unprecedented.

The hausse indices now indicate that a majority of the short term cryptocurrency investors are negative and that the level of pessimism is increasing at record speeds. According to Investtech’s analyses, this is a sell signal and one should stay away from this market until clear signs of a trend break upwards are present.

But this is still very exciting and we look forward to giving new and old customers daily analyses and recommendations for cryptocurrencies. This is a market where things change quickly!