Daily Crypto Analysis - 22nd Feb - Technical AnalysissteemCreated with Sketch.

Bitcoin

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

Bitcoin has continued its dip after a small pullback above the 38.2% support level and is currently testing the 50% retracement. Volume remains high on this leg of the drop, suggesting a strong trend. However, we are starting to see some bullish divergence on both the MACD and RSI. Unless we can form new lows on the MACD and RSI, this could easily bottom out, forming a flatter consolidation.

Bitstamp:BTCUSD 4h
(Bitstamp:BTCUSD 4h)

On the higher time frame, we can see there was strong bearish divergence on the RSI and MACD prior to the drop. The first support level to watch here is $9222, which marked the low of a previous bearish leg. Past that, the 50% retracement is in play at $8850, followed by the historical support at $7888.
Bitcoin has needed a pullback to retest lows since the $6k bounce. If we see a strong bounce from support, then we can start looking for a new bull market. Until then, I would be cautious of opening any positions, as we may well drop straight through support as we did in Jan and early Feb.


Ethereum

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

Meanwhile, Ethereum is seeing double bullish divergence on both the RSI and MACD, suggesting a lot of weakness in this recent drop. We could easily find support around the 61.8% and $776 supports, which marked the bottom on a previous pullback.
However, I would still wait for a strong confirmation, such as a double bottom around the support level, as Bitcoin is very much in control of the market at the moment. But, if Ethereum can decouple from Bitcoin's drop, this would be a very bullish sign for the medium term.

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

On the ratio, Ethereum managed to stay above the 0.07730 support, hasn't yet broken above 0.08145. Given ETHUSD's strong bullish divergence despite Bitcoin's continued drop, there is a good possibility that we break upwards here. But, if not, we can still form a good consolidation zone between the 0.08145 resistance and the 0.0773 support. We'll have to watch for a rejected test of the supports over the next few days as confirmation.


Bitcoin Cash

Poloniex:BCHBTC 2h
(Poloniex:BCHBTC 2h)

Bitcoin Cash has broken below the 0.1207 support, which is a very weak signal for us, as it marks an even lower low amid a 2 month pullback. There are no historical support levels to speak of around here, so its a matter of just waiting for a support to form.
Where are, however, seeing some bullish divergence, suggesting we might be close to the bottom of the short term pullback. It's still always wise to wait for a confirmed support level first, but this could provide a good opportunity in the near future.


NEO

Binance:NEOBTC 2h
(Binance:NEOBTC 2h)

Similarly to ETHBTC, Neo has held above its recent support, but is yet to break upwards. We are currently testing the descending resistance line, and have been forming a rising support.
This places us very close to the end of a symmetrical triangle. If this breaks down, we would expect a dip roughly the length of the last. Measured from the tip of the triangle, this would give a target price of roughly 0.00974. However, if we break upwards then we will likely retest the 0.01200 resistance.
I would recommend waiting for this move to complete before looking for any positions, as the outcome is uncertain.


Litecoin

Poloniex:LTCBTC 1h
(Poloniex:LTCBTC 1h)

Litecoin is still respecting the support from the descending wedge after a small retest of the 0.01928 support. Volume has stayed pretty low, making this a good opportunity for a bullish consolidation zone over the next few days, if we can hold the support levels. Once a good consolidation range has been identified, then we can start looking at possibilities for the next bullish leg.


Monero

Poloniex:XMRBTC 30m
(Poloniex:XMRBTC 30m)

As expected, Monero broke upwards from its bull flag yesterday to make a retest of highs. It ended up falling short, reaching only 0.0294 before retracing back to the 0.0278 support. This coincides nicely with the 50% retracement, which is a common level for pullbacks in crypto.
Hopefully, over the next few days, we can stay within a tight trading range to allow the volume to consolidate ready for another leg up.


Also:

Thanks to @crypto-daily for briefly referencing my last post, the extra views are always appreciated.

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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