Daily Crypto Analysis - 27th Jan - Technical AnalysissteemCreated with Sketch.

in #cryptocurrency7 years ago (edited)

Bitcoin

Bitstamp:BTCUSD 1h
(Bitsamp:BTCUSD 1h)

Bitcoin is currently retesting some resistance from the last local high. It saw a sharp break of the resistance of the triangle we noted on the 4h chart yesterday, so it may be getting ready for a new bull run.
But, I would still advise waiting for breaks of the resistance levels up to and through $11910 before getting too excited, as this could easily turn into a fake-out. Both directions look pretty uncertain at the moment, so make sure to keep tight stop losses if you decide to trade this.

Ethereum

Bitstamp:ETHUD 1h
(Bitstamp:ETHUSD 1h)

We also saw a break upwards for Ethereum, which has so far broken two historical resistance levels. However, the volume of the breakout makes me uneasy, as we would expect a much higher volume on a breakout compared to the consolidation period.
As with Bitcoin, try not to get caught up in hype for a suspected breakout until it is confirmed by your own trading rules and make sure to keep small positions and/or tight stop losses on high risk trades.

Bitstamp:ETHBTC 1h
(Bitstamp:ETHBTC 1h)

ETHBTC has continued to push up from its consolidation zone and has made a secondary consolidation between 0.094 and 0.097. Consolidation near highs is a bullish sign, so a new bullish leg is looking likely.
However, we can see some bearish divergence on the RSI and MACD. Generally this would be a sign of a weak trend, but since we're still in consolidation there was never much of a trend to speak of, so I would give it less notice. We may see a pullback within the consolidation zone, but the 0.093 and 0.0922 resistance levels will now be supports for any such action.

Bitcoin Cash

Poloniex:BCHBTC 4h
(Poloniex:BCHBTC 4h)

Bitcoin cash still meanders downwards on the ratio, although on extremely low volume. This would be the expected behaviour of the "creek" of an accumulation for Wyckoff theory, as I mentioned yesterday.
An accumulation is where institutions will try to shake out traders of their long positions to be able to buy up as much of the asset as possible before starting the next bull run.
Even if this does turn out to be an accumulation pattern, I would still recommend caution around opening longs, as a "spring" (sharp drop) can follow the creek to shake out the last of the longs before the start of the bull run. Keeping this in mind, I would wait until we see a good support and reversal pattern before entering the market.

NEO

Bitfinex:NEOBTC 4h
(Bitfinex:NEOBTC 4h)

Neo appears to have taken the option of longer consolidation, as opposed to a sharp bounce from the major support. I maintain that the longer consolidation near highs is bullish, as it allows the market to cool off a bit after the huge bull run that we saw over the two months.
We may see another dip back to the 38.2% support, but any lower seems unlikely at the moment.

Cardano

Bittrex:ADABTC 4h
(Bittrex:ADABTC 4h)

After a bull run of 260% from late December into early January, ADA saw a strong pullback to the 61.8% support of the move, and now appears to be consolidation between that and the 50% resistance. Volume consolidation looks to be good, with a significant drop off compared to the bulk of the bull run. We also appear to have found a solid bottom at the 04730 support, which gives a good reference point for risk management.
This may end up a bit like BCHBTC, but a retest of the 09180 support is looking more likely.

Disclaimer

I will do my best to give unbiased, objective analysis, but I can make no promises about my accuracy.
All posts are based on my personal opinions and ideas and do not constitute professional financial investment advice.

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Coins mentioned in post:

CoinPrice (USD)📈 24h📉 7d
ADACardano0.621$0.92%-11.39%
BTCBitcoin11504.500$4.57%-10.49%
ETHEthereum1118.030$7.03%-2.7%
NEONEO141.119$3.96%-5.61%

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