Daily Crypto Analysis - 24th Feb - Technical AnalysissteemCreated with Sketch.

Bitcoin

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

After its bounce from $9600, Bitcoin is continuing its drop. The RSI and MACD haven't formed new lows yet, so there is still the possibility of some bullish divergence, but that will probably be invalidated as this leg picks up volume.
The 50% support remains the next level to watch, as it's a common retracement point for a small consolidation. As I mentioned yesterday, the next week or so will be the deciding factor between the start of a new bull run or a continued bear market. If we can form solid support here or a sharp bounce from lower support levels, then we can start looking for the next leg up. On the other hand, the recent upwards trend certainly didn't look strong, so a break below $5920 will signal a continued bear market.


Ethereum

Bitstamp:ETHUSD 2h
(Bitstamp:ETHUSD 2h)

Ethereum, meanwhile, hasn't yet broken $816 despite the continued drop in Bitcoin. We will have to wait and see whether it can hold above these levels once the volume starts to pick up on this leg of Bitcoin's dip, but this is looking a lot more bullish for Ethereum than Bitcoin.

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

On the ratio, Ethereum is definitely showing good counter-trend movement to Bitcoin. This is a strong sign, as normally we'd expect to see altcoins following BTCUSD during drops, where as ETHBTC is breaking from that norm. During the last major leg of the correction, ETHBTC managed to make good gains once it had decoupled from Bitcoin, so a similar pattern can be expected here.
I would recommend waiting for a consolidation zone to form before entering any positions here to help reduce risk, but this is looking generally bullish in the medium term.


Bitcoin Cash

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

Bitcoin Cash is still looking quite weak, with its small jump almost completely retracing back to the 0.1207 support. While volume does remain low, the fact that we already broke the previous low of the macro pullback doesn't lend a very bullish outlook here. Until we have a decent support formed, I will stay on the sidelines.
This chart also gives a good example of why I prefer to use Bitstamp for TA (unless the volume on the pair is too low) - the large spike downward to 0.113, which was likely caused by a cascade of margin calls. I've seen these happen many a time on exchanges like Poloniex and Bitfinex, whether by manipulation or otherwise. Since Bitstamp is a very reputable exchange without margin trading, it can give a clearer representation of the true market value at the time.


NEO

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

Neo remains within its ascending channel with relatively low volume. This is definitely looking like a bearish continuation pattern, so its just a matter of time until it finds a strong resistance level. The main historical resistance levels are around 0.012000 and, if that breaks, 0.012545.
As with Bitcoin Cash, this will simply be a matter of waiting for a good support level to form before we can take any positions. So we have to wait on the sidelines.


Litecoin

Poloniex:LTCBTC 2h
(Poloniex:LTCBTC 2h)

Litecoin has managed to hold around the 61.8% retracement despite the apparent weakness of the spike. Volume remains low and there was a rejected test of the 0.021100 resistance. We're now looking for a consolidation zone to form, possible around the 0.020133 support. If we can form a tight trading range, then we might see another leg like the last, which came from the Feb 3rd - 14th consolidation.


Monero

Poloniex:XMRBTC 1h
(Poloniex:XMRBTC 1h)

Monero continues to consolidate and appears to be within a descending channel. A spike upwards followed by a descending channel would generally form a bullish flag, however, the volume and volatility look too high for a standard bull flag.
Monero has been refusing to form a good consolidation zone for the last few weeks, and this is no different. It may well break up from this channel, or it may not. My strategies are mostly based around flat consolidation zones, which simply aren't forming in this market, nor any other clean patterns for that matter. So the wait continues for some meaningful structure to appear.


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
BTCBitcoin9550.610$-5.76%-12.77%
ETHEthereum818.631$-3.24%-15.72%
LTCLitecoin198.885$-3.22%-13.23%
NEONEO114.498$-3.43%-15.82%
XMRMonero265.991$-5.24%-17.85%

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