Bitcoin Price Technical Analysis for 02/07/2018 – Another Trend within a Trend

Bitcoin Price Key Highlights

Bitcoin price is trending lower on its 4-hour time frame but is bouncing off support.

A pullback to the channel resistance could be underway, but there are also nearby inflection points.
In particular, a descending trend line connects the highs since the start of the year and lines up with Fib retracement levels.

Bitcoin price continues to trend lower but is in the middle of a correction, possibly to the long-term channel resistance or a short-term falling trend line.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA on this time frame to confirm that the path of least resistance is to the downside. This means that the selloff is more likely to persist than to reverse. The gap between the moving averages is widening to reflect increased selling pressure.

In addition, the 100 SMA lines up with the short-term descending trend line to add to its strength as a ceiling. This is also in line with the 38.2% Fibonacci retracement level around $8,000.\

Stochastic is still pointing up to show an increase in buying pressure, though, while RSI has more room to climb so bitcoin price could follow suit. A larger correction could last until the 200 SMA dynamic inflection point right in line with the channel top.

Market Factors

Risk appetite recovered somewhat in the financial markets as equities pulled up from a steep single-day drop to close in the green. This also allowed cryptocurrencies to rebound, although its also evident that there was a lot of buy orders waiting at key support zones.

Looking ahead, the focus could still be on market sentiment and how it relates to global tightening expectations. This could have a strong influence on bitcoin price action from here since there are no major catalysts driving cryptocurrencies around.

Then again, it’s important to note that bitcoin remains under pressure from stricter scrutiny by regulators and a number of financial institutions. It would take a significantly positive catalyst to shore it up once more while investors are feeling wary about bans or glitches.
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Ripple Price Technical Analysis – XRP/USD Facing Barrier at $0.7250

Key Highlights

Ripple price recovered nicely from the $0.5180 swing low against the US dollar.

There was a break above yesterday’s highlighted crucial bearish trend line with resistance at $0.6100 on the hourly chart of the XRP/USD pair (data source from SimpleFx).

The pair faced a major barrier on the upside near $0.7250 and is currently moving lower.
Ripple price recovered in a constructive fashion against the US Dollar and Bitcoin. XRP/USD traded above the $0.6500 level, but it is currently facing a major barrier at $0.7250.

Ripple Price Resistance

Yesterday, we saw a major decline in Ripple price from well above $0.7000 against the US Dollar. The price fell sharply and traded below the $0.6600 and $0.6000 support levels. It even broke the $0.5550 level and traded close to the $0.5000 level. A low was formed at $0.5180 from where the price started an upside correction. It moved above the 23.6% Fib retracement level of the last decline from the $0.9676 high to $0.5180 low.

More importantly, there was a break above yesterday’s highlighted crucial bearish trend line with resistance at $0.6100 on the hourly chart of the XRP/USD pair. The pair traded above the $0.7000 level. However, the upside move faced a major barrier near $0.7250.
The mentioned $0.7250 level was a support earlier and now it is acting as a crucial barrier. XRP also failed just below the 50% Fib retracement level of the last decline from the $0.9676 high to $0.5180 low.

The pair is once again moving lower and is currently trading below $0.7000. An initial support on the downside is at $0.6200, followed by the $0.6000 level. On the upside, a break above the $0.7250 level is needed for more gains in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for XRP/USD is back in the bullish zone, but with no pace.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is struggling to stay above the 50 level.

Major Support Level – $0.6000

Major Resistance Level – $0.7250
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Cardano Price Technical Analysis – ADA/USD Showing Positive Signs

Key Highlights

ADA price traded further lower and formed a low at $0.2615 before starting a recovery against the US Dollar (tethered).
There was a break above a key bearish trend line with resistance at $0.3300 on the hourly chart of ADA/USD (data feed via Bittrex).

The pair is currently struggling to move above the $0.3700 level, but there are a few positive signs.
Cardano price has recovery well during the past few sessions against the US Dollar and Bitcoin. ADA/USD now has to move above $0.4000 to gain upside momentum.

Cardano Price Recovery

There were further slides in ADA price below the $0.4000 level against the US Dollar. The price traded below the $0.3000 and $0.2800 support levels to move towards $0.2500. A low was formed at $0.2615 from where it started an upside recovery.
It was successful in moving above the 23.6% Fib retracement level of the last drop from the $0.5185 high to $0.2615 low.

During the upside move, there was a break above a key bearish trend line with resistance at $0.3300 on the hourly chart of ADA/USD. The pair even moved above the $0.3500 resistance level, but it failed to gain momentum. It traded close to the 50% Fib retracement level of the last drop from the $0.5185 high to $0.2615 low, but failed.

It seems like the $0.3800 and $0.3900 levels are important resistances. At the moment, the price is moving lower and is testing the $0.3200-0.3300 support area.

To gain further upside momentum, the price has to move above the $0.4000 level. The next major resistance above $0.4000 is at $0.5000. On the downside, if the price fails to hold the $0.3200 support, there is a risk of further slides below the $0.3000 level.

Hourly MACD – The MACD for ADA/USD has reduced most of its bullish slope.

Hourly RSI – The RSI for ADA/USD is just around the 50 level.

Major Support Level – $0.3200

Major Resistance Level – $0.4000
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