Daily Crypto Analysis - 18th Feb - Technical Analysis
Bitcoin
(Bitstamp:BTCUSD 1h)
Bitcoin pushed yet higher to make a test of the $11160 resistance before a pullback to around $10k. There are still signs of bearish divergence on both the RSI and MACD and volume still remains extremely low relative to the drop. Because of this, I remain on the sidelines until this has fully played out.
We may well see a double top forming here along with a bigger drop. Equally, we may form a flat consolidation, which would finally make a good place to buy into. Either way, it is safer to watch from the sidelines than place a directional bet on the flip of a coin.
Ethereum
(Bitstamp:ETHUSD 1h)
Meanwhile, Ethereum is seeing a similar bearish divergence but a much shallower climb. If Bitcoin does break downwards, then we can expect to see ETHUSD following it, but possibly a shallower descent too.
We appears to have found some support at the 50% retracement of the macro trend, meaning we could form a consolidation zone given another week around this level. If Bitcoin is form a consolidation zone rather than dropping, then Ethereum is positioned well to consolidate for a new bull run in the near future.
(Bitstamp:ETHBTC 1h)
Due to Bitcoin's continued climb, ETHBTC continued to drop and, despite the bullish divergence, broke the 0.08825 support. We have, however, formed yet more bullish divergence, but support levels remain sparse. Since the trend has been dictated by Bitcoin over the last few days, the best place to watch for signals is BTCUSD. A strong pullback on BTCUSD will likely form a support level on the ratio.
We also appear to be forming a loose descending channel/ wedge which, along with the bullish divergence, is a bullish sign. This simply a waiting game until a credible support level forms.
Bitcoin Cash
(Poloniex:BCHBTC 1h)
Bitcoin Cash remains in a slight descending pattern in its consolidation. Volume still remains low and the 61.8% support is generally being respected, so no particularly bearish signs forming. A decent bounce off this level without a sharp retracement will confirm the support, then its just a matter of waiting for the consolidation to play out.
NEO
(Binance:NEOBTC 1h)
Neo is providing a prime example from Neo as to why waiting for a third bounce is preferable. We appear to be breaking lower from the support level. There is always the possibility of consolidation zones breaking down, especially when volume remains relatively high, so positions should be sized appropriately.
For the meantime, we are back to waiting for another credible support level.
Litecoin
(Poloniex:LTCBTC 1h)
As suspected, Litecoin pushed lower to form a more conventional bullish pennant. Depending on your risk tolerance, you can either trade this by buying near the support levels and waiting for it to break upwards from resistance, or you could wait for a retrace from a break upwards before buying in. Or, you could combine the two and add small amounts to a position on each test of support and adding the rest after a pullback from a breakout, giving a decent balance between risk and reward.
Whichever way you decide to play it, make sure to keep a view on the possibility of its unexpectedly breaking downwards and size positions accordingly.
Monero
(Poloniex:XMRBTC 1h)
Monero has pulled back from its retest of highs to find support around the 50% retracement. Hopefully this time it will form a better consolidation zone before trying to break upwards again.
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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