Academy Trading Ideas Article

Crypto Market Daily (2.24)|Notice the area of $9,500 ~ $10,050 of BTC in short-term, and needs to guard against the risks caused by sharp fluctuations.

2020.02.25

BTC perpetual contract

Level Character1H-consolidation

Although BTC briefly broke through the resistance of $9,850 at the weekend, it was immediately under pressure from large amount of selling fund around $10,000, and price quickly fell back to around $9,700. OKEx analyst Neo believes that the bulls’ behavior of absorbing counters at the weekend is obviously not enough to initiate the next bullish of BTC. The rapid decline a few hours ago confirmed that the profitable funds in the previous period were still looking for opportunities to liquidate and leave the market. Therefore, there is a high probability that it will appear patterns of enticing long or short. On the one hand, this form is a reflection of the profit taking behavior, on the other hand, it is also the behavior of changing hands in order to get counters from retail investors to big whales. From the current trend, the support at $9,500 is still valid. It may have a good chance to enter if the price stabilizes near this point. The upper resistance is near $10,050. If the price is continuously blocked near here, investors need to be alert to the risk of falling.

Level Character1D – consolidation

This is the 1-Day chart of BTC, as the chart shows that price has been supported by MA(30) at the last weekend, this means that bullish trend is not destroyed currently. However, the bullish volume gives a signal that trend won’t able to create a new high in short term as it’s still in a low level during these days.

This week investors should remind that bearish won’t come unless price dumped below $9000~$9100. The rise also may not come in short term as the previous pump still need a period to consolidate, and during this period, investors should care more about the fluctuation in a narrow range as the big whales will use their method to kick retail investors out and in order to get their counters. Short-term traders can use method of selling at top and buying at bottom with hourly chart.

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, the good new for bulls is that the price is temporary stabilized on $262 at the moment, however, the trading volume is still in an absolutely lower level compare with before. This is a signal that consolidating trend will continue for another period.

The history indicates that area between $262~$264 is an effective resistance and support when price is touching, but it doesn’t mean that I can’t be break in the future, in fact, the stronger support level is around $245, unless the price dump below $245, or the big level of bullish is till exits. Resistance between $280 and $290 will be a key area that determine the future bullish will come or not.

Resistance and Support level:

Short-term Resistance$278        Medium-term Resistance$287

Short-term Support$262            Medium-term Support$245

XRP perpetual contract

Level Character:1H-consolidation

OKEx XRP perpetual contract: From the chart we can clearly see that the hourly head and shoulders top has been successfully formed, and the volume indicates that after the right shoulder was formed, the whole volume level is declining into a lowest level during these days. Trend can’t move beyond a limited range according to this level.

Price is possible to shock between $0.2670 and $0.2885 in short term. Breaking will happen after the bulls absorb enough counters in this area. As $0.2670 is the bottom of the two shoulders, the support strength will be hard and it’s not easy to break. The next two resistance is around the top of the left shoulder and right shoulder, break all of them can test the top of the head.

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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