Daily Crypto Analysis - 25th Feb - Technical AnalysissteemCreated with Sketch.

Bitcoin

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

Bitcoin has continued its drop, reaching almost as low as the $9222 support. However, volume on the drops does appear to be diminishing and there are further signs of bullish divergence on both the RSI and MACD. This suggests weakness to the dip. Unless volume picks up and the oscillators push to new lows, this could easily bottom out.
In contrast, margin shorts on bitfinex has been rising once again, back to the peak levels of the previous leg of the drop. The market is obviously betting on further drops, but we wait to see whether it can pick up the momentum.
Near market extremes, the margin levels can make good contrarian indicators, for example the overweight of longs vs shorts preceding the $19666 top. They can provide an interesting insight into market psychology and the actions of "whales". But at time like this, in the middle of a move, they can give a helpful view of some of the flow of money in the market.


Ethereum

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

Ethereum is still holding around the $816 support nicely, with a good drop off in volume, meaning we could form a consolidation zone around these levels. If Bitcoin does continue significantly lower, then we'd expect Ethereum to follow suit, but for now it remains strong.

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

On the ratio, Ethereum continues to climb counter-trend to Bitcoin. This is generally a strong sign, as we've established a strong reversal formation and are seeing good growth. However, this rise is on very low volume, which makes me cautious. Low volume trends are prone to sharp pullbacks, so I plan to stay clear of this until it has paused for a consolidation zone.


Bitcoin Cash

Poloniex:BCHBTC 1h
(Poloniex:BCHBTC 1h)

Bitcoin Cash has seen a little bounce off the 0.1192 support. It has already held the 0.1192 to 0.1241 zone for the last few days, if it can make another bounce from support, then I'd be tempted to call this a consolidation zone. I remain cautious of BCH due to the longer term pullback, but it will find a bottom eventually. Until then, we can stay on the sidelines and take the occasional small trade as it presents itself.


NEO

Binance:NEOBTC 1h
(Binance:NEOBTC 1h)

Neo continues its rise within the ascending channel. It appears to be forming a loose ascending wedge, which is a bearish continuation pattern, especially when combined with the relatively low volume. A break downwards is likely in the next few days although, if we find support rather without breaking below 0.01088, we could form a strong bullish reversal.


Litecoin

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

Litecoin is moving to retest highs of the majorr leg up. Volume remains at consolidation levels, so I don't expect to see a break above 0.0250 without a serious pick up in volume first. A consolidation zone around highs will be the ideal scenario here, as its a sign of market strength and provides a good base for the new leg up to move from, as opposed to a weak move starting from the 0.0201 support.


Monero

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

Monero, too, is moving to retest highs, with a low volume climb. Again, the best outcome here is a small consolidation zone around the highs rather than trying to move straight into the next leg, as the latter gives a lower target price due to the lower start of the leg and, more importantly, it provides no opportunity for a good buy in. As I recommended on the test of the higher time-frame resistance, it is better to miss the breakout and wait to buy in during a consolidation rather than expose yourself to the added risk of a possible fake-out.


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.

Coin Marketplace

STEEM 0.19
TRX 0.15
JST 0.030
BTC 65669.27
ETH 2668.58
USDT 1.00
SBD 2.87