Academy Trading Ideas Article

Crypto Market Daily (2.17)|BTC forms an hour-level head and shoulders top pattern again, and concerns whether the price can rebound at the neckline.

2020.02.21

BTC perpetual contract

Level Character1H-consolidation

This is the 1-hour chart of BTC. BTC entered a callback market last weekend, and price quickly fell below $10,000, it is currently maintaining above $9,700. OKEx analyst Neo believes that the trading volume has continued to shrink after breaking through $10,000 recently, and the rise has also slowed down compared to before. With the strong resistance area near $10,000, the risk of reversal will always exist, therefore, the callback phase after failing the continuous test of $10,500 is in line with expectations. At present, the hourly level is forming the pattern of the head and shoulders. The neckline at the bottom of the shoulders is near $9700. There is a high probability that price will stop falling at this position. However, the rebound in the past few hours is weak, and multiple long upper shadows of the candlesticks are kept forming. The possibility of standing back above $10,000 in short-term is small, and the bulls still need time to accumulate energy. Remind investors that the recent trend is likely to break $9700 in the future and continue to test the area above $9,500.

Level Character1D – bullish

This is the daily chart of BTC, it’s clear to see that there is a blue line that I added on the chart, and this is the 30-days moving average which can be judged as the bullish trend has broken or not.

In general, the callback after every bullish stage should be support by MA(30) if the large level of bullish can able to continue. Therefore, investors could pay more attention around the area near $9500 as if $9700 is broke, if price can get support may means the after market may possibly rebound, but if break through MA(30), a longer callback which located to about $9000 may happen in that condition.

Bullish can keep longer if the energy is strong enough as the current 5th wave should be the extension one, otherwise may means that the current daily 5 bullish waves stage is over, trend needs more callback.

Resistance and Support level:

Short-term Resistance$9850        Medium-term Resistance$10050

Short-term Support$9700          Medium-term Support$9550

ETH perpetual contract

Level Character 1H-consoldiation

This is the 1-hour chart of ETH, in my opinion, the rebound is possible to happen above $235 in current condition, as the chart shows, in fact the callback during last weekend has almost digested the amount of counters which around $260~$275 absorbed previously.

Chart also shows that in the future, the trend needs to digest the pump between $235~$260, therefore, the area near $235 can be a hard bottom and another bullish can possibly begin.

Remind investors that the current trend is still in a consolidation, MA(30) is becoming hard resistance when in decline, if rebound can’t break through it, care more about the falling risk is necessary.

Resistance and Support level:

Short-term Resistance$252        Medium-term Resistance$260

Short-term Support$245            Medium-term Support$235

XRP perpetual contract

Level Character1H-consolidation

OKEx perpetual contract: XRP dumped a lot during last weekend, it almost taking most rises for last whole week, and the current condition of XRP is in my expactation as it’s a coin which can pump more when market is steady and dump more when market is falling.

Due to the hard support around $0.2670, trend may stop declining but it’s hard to rebound more in short term as the buying volume is poor in rebounding, $0.2884 and MA(30) will become effective resistances at the same time. Trend needs more time to consolidate and abosrb more counters to prepare for the breaking, therefore a right shoulder pattern can able to form if can stabilize upon $0.2670.

Investors should remind that breaking through MA(30) can just means that price won’t decline more in short term but doesn’t mean that another bullish is coming, I call it a rebound before breaking the pevious top.

Resistance and Support level:

Short-term Resistance:  $0.2840    Medium-term Resistance:  0.2884

Short-term Support:  $0.2770      Medium-term Support:$0.2670

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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