February 23 2018 Price Analysis: USD / Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Cardano (ADA), Litecoin (LTC), IOTA (MIOTA), Dash (DASH), Monero (XMR): With most of the cryptocurrencies bouncing from the intermediate lows which they created just in the last 48 hours, many investors want to find out whether they should invest now.
We go into the technical analysis of some of the cryptocurrencies to give you a clear picture. These technical details will help you better understand whether you should invest in cryptocurrencies or whether you should wait for a longer period of time to invest in this cryptocurrencies.
USD / Bitcoin (BTC):
The 100 SMA is above the longer-term 200 SMA to show that the path of least resistance is to the upside or that the rally could continue. However, the gap between the moving averages has narrowed to show that bearish momentum could kick in.
Stochastic is hovering around oversold levels and could turn higher to show that buyers are ready to get back in. RSI is also in the oversold area, which means that sellers are exhausted.
In that case, a pullback to the broken neckline around $10,250 could happen before selling pressure gains more traction.
There was no major upside move in ETH price above the $860 level against the US Dollar. The price struggled to correct higher and it started a downside move below the $840 level. It declined and broke a couple of support levels such as $810 and $800. It traded as low as $776 from where a minor upside correction was initiated. However, the price may face many barriers on the upside on the way to $810.
It has moved above the 23.6% Fib retracement level of the last decline from the $858 high to $776 low. However, there is a major resistance near $810-820. More importantly, yesterday’s highlighted major bearish trend line with current resistance at $820 is intact on the hourly chart of ETH/USD. The trend line resistance is close to the 50% Fib retracement level of the last decline from the $858 high to $776 low. Therefore, if the price corrects further from the current levels, it could face sellers near the $820 and $825 levels. Above $825, the next major barrier for buyers is at $840.
On the downside, the recent low at $776 is a key intraday support. If the price fails to stay above $776, then it could accelerate declines towards the $750 level.
There was an extension to yesterday’s decline in Ripple price from the $0.8800 swing high against the US Dollar. The price failed to hold the $0.9000 and $0.8400 support levels and declined further. An intraday low was formed at $0.8015 before price started a minor upside correction. It is currently trading above the 23.6% Fib retracement level of the last decline from the $0.9483 high to $0.8015 low.
However, there are many hurdles on the upside below the $0.9000 level. There is also a key bearish trend line forming with resistance at $0.8700 on the hourly chart of the XRP/USD pair. At the moment, the price is testing the 38.2% Fib retracement level of the last decline from the $0.9483 high to $0.8015 low. There is a chance of it moving further higher towards the $0.8700 or $0.8800 levels, but an upside break won’t be easy. Moreover, the 50% Fib retracement level of the last decline from the $0.9483 high to $0.8015 low is at $0.8749 to act as a resistance.
On the downside, the $0.8100 and $0.8000 levels are decent supports. As long as the price is above the $0.8000 handle, it could make an attempt to recover above $0.9000.
Bitcoin Cash (BCH):
There was no stopping sellers as bitcoin cash price failed to correction above the $1,300 level against the US Dollar. The price declined and broke yesterday’s low to trade below the $1,200 level. It opened the doors for more losses and the price traded towards $1,150. A low was formed at $1,134 and it seems like the price is struggling to correct higher in the short term.
On the upside, the price is facing resistance near the 23.6% Fib retracement level of the last drop from the $1,325 high to $1,134 low. There are many resistances on the upside below the $1,300 level. More importantly, there are two bearish trend lines forming with resistance at $1,250 and $1,280 on the hourly chart of BCH/USD. The first bearish trend line is close to the 50% Fib retracement level of the last drop from the $1,325 high to $1,134 low. Therefore, a break above the $1,250 and $1,260 levels won’t be easy. Above $1,260, the second trend line at $1,280 is the next hurdle.
On the downside, the recent low of $1,134 is a short-term support. If the price breaks the stated level, it could test the $1,100 level.
There was no major recovery in ADA price above the $0.3600 level against the US Dollar. The price did not move above the $0.4000 resistance and declined once again. During the recent slide, it broke the $0.3500 and $0.3300 support levels. It even traded below $0.3200 to test the $0.3000 area. A low was formed at $0.2995, and the price is currently consolidating losses around the $0.3000 level.
It is testing the 23.6% Fib retracement level of the last drop from the $0.3866 high to $0.2995 low. It seems like the price may find it hard to break the $0.3200 and $0.3300 resistance levels in the short term. There is also a major declining channel forming with resistance at $0.3205 on the hourly chart of the ADA/USD pair. The channel resistance at $0.3205 is near the 23.6% Fib level. If there is a break above $0.3205, the price may correct further higher. The next major resistance is near $0.3430 and the 50% Fib retracement level of the last drop from the $0.3866 high to $0.2995 low.
On the downside, the $0.3000 level is a major support. If the price fails to stay above $0.3000, it could even trade back towards the $0.2500 level in the near term.
From the chart, sellers are definitely in charge and as long as yesterday’s LTC bear pressure continue, then chances of the middle BB and $160 being hit is high.
Our strategy is on course and what remains today is if there will be a reaction at $180. If prices slow down and any bullish engulfing candlestick prints anywhere around support in the 4HR chart, then bulls can buy and spread out their entries.
Otherwise any surge past $160 will invalidate our initial bullish break out strategy.
IOTA has been in the same category as Ripple in terms of weakness during this correction period. Therefore, it still remains dominant in the downtrend. However, we are still in the expectation that it will break out in the coming weeks.
However, at this level, investors could still increase their holdings due to the fact that the $1.5 support level is soon close to the current IOTA price. Therefore, the resistance zones after the correction are expected to be between the $2.2 and the $2.35 levels. According to the situation, the Cryptocurrency has a crash low of $1.2.
Like the Lumens, DASH is on a down trend and if we view price developments in the 4HR chart then we notice that sellers are actually stepping on gas as they band along the lower BB.
In the daily chart however, we are at a cross road and wont recommend buy or sell unless there is a definitive follow through of yesterday’s bear pressure.
Remember, from previous analysis the middle BB and price around $620 remains a key price tag since it is right at previous bullish break out point and we are yet to know if this will turn out to be a retest or bear resumption despite last week’s bullish pressure.
In my view, buyers need prices to pick up and if there is a close above $620, then that would be a double bar reversal pattern or a retest right at the middle BB.
During the mid-month trading, the Digital currency Monero (XMR) against USD penetrated the area of 239.70 $, which we pointed to its importance during a previous report.
The most secret currency broke the ascending trend line on the time interval 240 minutes during the trading week and during yesterday’s trading broke the currency area $ 287, which confirmed the shift to the downside.
The SMA is cross-legged with its slow counterpart, which supports sellers.
The index of the moment of the MACD with the normal settings is bearish.
It is expected that, in the case of breaking the digital currency Monero area $ 273 may target the area $ 209.45 on the other side, in case of penetration of 287.65 may target areas of 329.