Daily Crypto Analysis - 15th Feb - Technical Analysis
Bitcoin
As Bitcoin pushes higher to test the resistance of its ascending channel, volume looks to be increasing marginally, but to nowhere near the levels during the recent dips. We can also see bearish divergence on the MACD and suspected bearish divergence on the RSI.
On this time frame, the market isn't looking very strong, suggesting a pullback in the near future. Although, based on recent price action, Bitcoin has proven its ability to continue gliding higher much further than it should. I would suggest simply staying on the sidelines for a while until there is either a sign of the trend strengthening or a pullback to buy from.
Ethereum
(Bitstamp:ETHUSD 1h)
Etherum is also seeing some bearish divergence on both the MACD and RSI, but has so far been following in Bitcoin's movement. Ethereum is definitely looking in need of a pullback to form a firm support level before it can start a new bull run. However, in the short term, it will likely just follow Bitcoin whichever way that decides to move.
(Bitstamp:ETHBTC 1h)
On the ratio, Ethereum continues to drop and has broken many historical support levels. The next major support comes at 0.08825, at the bottom of a previous consolidation zone. Volume still remains low, meaning that we aren't yet in full sell-off mode, instead ETHBTC is just looking for a firm support level.
I would recommend against entering positions here until there is a firm support level established with a fairly lengthy consolidation period.
Bitcoin Cash
(Poloniex:BCHBTC 1h)
Bitcoin Cash ended up continuing its descent yesterday, invalidating the suggestion of the spike being a "spring". While volume remains low as we creep downwards, there are very few support levels here, giving us quite a lot of room to move downwards. To reduce risk, it would be best to wait for a confirmed support level before entering this market.
NEO
(Binance:NEOBTC 1h)
In a similar manner to ETHBTC, Neo has broken through support as Bitcoin glides higher. So far there has been a slight break below the 0.0120 support which marked the bottom of the last movement. This is a pretty weak sign, as there are few credible support levels below this.
As with many of the other pairs, it is a case of waiting and watching from the sidelines until there is a confirmed consolidation or a strong market trend to buy into.
Cardano
(Bittrex:ADABTC 1h)
As suspected, Cardano broke through support and is making its way lower. It approaches the 100% retracement of the move at 3700. This is looking pretty bearish for ADABTC and, unless there is a strong bounce at or before the 3700 support, this will likely result in a sustained bearish trend.
If it does break lower, I will continue to comment on Cardano occasionally, but only when it makes a notable market move.
Litecoin
(Poloniex:LTCBTC 1h)
Litecoin managed to push even higher, making a 3rd leg up to 0.0250 against the bearish divergence. However, that is now resulting in a much sharper retracement.
Volume is dropping rapidly, but still has a long way to go to form a good consolidation period. But, even more importantly, we must wait for a confirmed support level and/or bullish reversal pattern here.
We may well find support between 0.0211 and the 61.8% retracement, but we wait for that to be confirmed by a bounce or two.
Monero
(Poloniex:XMRBTC 1h)
Monero has seen a good bounce off the 76.8% retracement and a secondary bounce off the 0.0276 support. This could make a good start for a new bull run, but personally I'd wait for a consolidation period before buying in, even if this does break higher.
A consolidation zone gives a preferable risk/reward ratio along with confirmation of support. While you may miss the start of some bull runs, waiting pays off with reduced risk and higher success rate.
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.