Daily Analysis on the Crypto Market - February 21, 2018

in analysis •  7 years ago 

Overall Market Analysis

Markets pulled back slightly after a massive run up from its lows. Bitcoin rose almost 20% in the last few days so a dip is not out of the norm. Total market cap hovered around $470 billion, down from $500 billion a day ago. Bitcoin dominance is approaching 40%, indicating that traders are favoring Bitcoin again. This is evident as most altcoins remained stagnant in the past few days while bitcoin sore. I do expect this trend to continue as more and more people move back to Bitcoin. Remember, Bitcoin dominance was 50-60% back in Q4 of last year. If a bull market is beginning,I do expect Bitcoin dominance to rise back over the 50% mark.

Bitcoin

After a 100% run up from its lows back on Feb 6 (the big crash), Bitcoin pulled back 10% today. This could be a result of traders taking profits. It's important to remember that mini dips like today's after a huge surge is healthy for the long term. It allows for consolidation.

Looking at the chart, the price bounced off its support line at around $10,150. Bitcoin will likely consolidate between $10,000 to $12,000 for the next few days. MACD on the 1 hour chart is signalling a short-term trend reversal so we will likely see bitcoin move up to the $11,000 area. If you are a trader, I would recommend setting a stop loss below the psychological $10,000 mark. 

Resistance levels: $12,000

Support levels: $10,000

Stop-Loss: Just below $10,000

Ethereum

Ethereum's volatility is slightly less than Bitcoin's but none the less, it follows bitcoin's lead. MACD lines on the hourly chart has also turn bullish, signalling a trend reversal.  I expect Ether to trade within the $810-$895 range in the next few days

Resistance levels: $860, $895, $910

Support levels: $817, $809, $780

Litecoin

Litecoin has seen a huge rally recently due to news about Litepay and Charlie Lee has been hyping of a "huge unexpected surprise" later this year. With the recent spike, Litecoin didn't build much support along the way. This could lead to a bigger drop for Litecoin if Bitcoin drops. 

Resistance levels: $225, $250

Support levels: $204, $186, $166

Ripple

Ripple has announced a few new partnerships recently but it's price volatility has remained pegged to bitcoin. From the hourly chart, we could see that Ripple was forming an ascending triangle pattern with a breakout mark of $1.20. However, that pattern was broken once bitcoin started to dip. I do expect ripple to have a nice pop once it break over $1.20 mark.

Resistance levels: $1.04, $1.20

Support levels: $0.93, $0.89


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