Academy Trading Ideas Article

Crypto Market Daily (2.21)|If can stabilize on $9,500 within the day, BTC exists the opportunity to test $9,700 ~ $ 9,850 resistance area at the weekend.

2020.02.21

BTC perpetual contract

Level Character1H-consolidation

Supported by the area between $9,200 and $9,500, BTC temporarily stabilized at $9,500. However, the rebound in the morning was weak and failed to effectively break $9,700 resistance level. OKEx analyst Neo believes that since BTC callback from $10,500, active exits of profitable funds have continued to increase, and long positions above $9,500 have gradually closed. Most long positions opened below $9,000 already existed among $9,200 and $9,500. Therefore, the profitable funds in the range of $9,500 to $10,500 have gradually left in the recent callback. If there is no decline with heavy volume this weekend, it may mean that the correction is coming to an end. However, investors need to pay attention that the bulls still need a period of time to absorb counters. Therefore, the probability of a daily-level rebound in the short term is low. Weekend trends may move in a narrow range of $9,500 ~ $,9850 and notice the risk caused by severe fluctuations.

Level Character1D – consolidation

This is the 1-Day chart of BTC, as I have told you guys in the past daily strategy, the bullish trend won’t be destroyed unless the short term moving average is broken, and the chart shows that during the first callback period, the bottom was stabilized upon MA(30), and although the lowest price once fell below it but the solid of the daily candlestick has stood on.

This signal means that the bullish may continue in the future. Investors should remind that bullish may continue if trend can break $9700 or even $9850 at the weekend, otherwise if price doesn’t keep steady on MA(30) or even dump below it, $9150 support level should be consider about as it’s the last defense of this bullish stage. Additionally, price is possible to break downwards first then quickly pull back in a short period, thus it’s important to judge the false breaking currently, watch more and do less is the best choice.

Resistance and Support level:

Short-term Resistance$9700        Medium-term Resistance$9850

Short-term Support$9550         Medium-term Support$9150

ETH perpetual contract

Level Character 4H-consoldiation

This is the 4-hour chart of ETH, ETH received strong support near $245, and was also subject to low-level trading volume, the rebound was under pressure at the hard resistance of $264, if price can’t break through and stabilize here within the day, trend will continue to consolidate at the weekend. Investors need to be alert for short-term false breakout patterns. It is recommended to use crucial points as a reference to wait for good choice.

The selling volume indicates that during the last two dump period, actively selling funds were still in a high level, and if it becomes lower in next callback, it’s a signal that the profitable funds almost leave the market, and rebound may happen.

Even though $264 can be break during the weekend, trend may possible to fall again if touch the $290 level, and the new high may create after the bulls finished to absorb enough counters, therefore the bullish volume should be noticed in short-term.

Resistance and Support level:

Short-term Resistance$264        Medium-term Resistance$272

Short-term Support$254            Medium-term Support$245

XRP perpetual contract

Level Character1H-consolidation

OKEx XRP perpetual contract: From the chart we can clearly see that trend is forming a head and shoulder top pattern currently, and it’s not difficult to judge it has formed or not in the future. Unless $0.2670 support level is broken, or means that this pattern has failed to form as it’s a signal of bearish.

Combine MACD and price chart, we can find out that a short term bottom divergence has formed, another evidence of weakness of bears is that the selling volume is getting lower, thus $0.2670 could be a very strong support currently. Break $0.2885 means that the rebound may continue, or the trend may continue to consolidate at the weekend.

Resistance and Support level:

Short-term Resistance:  $0.2885    Medium-term Resistance:  $0.3090

Short-term Support:  $0.2670      Medium-term Support:$0.2450

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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