Academy Trading Ideas Article

Crypto Market Daily (2.26)|BTC faces a critical turning point, $9,100 may become the last defense of bulls.

2020.02.27

BTC perpetual contract

Level Character1H-consolidation

This is 1-hour chart of BTC, after falling into the support area among $9100 and $9500, trend didn’t have a signal of stopping decline. The future trend will be clear in this week as if the price can stabilize on $9100 within one or two days, rebound may begin around here, the most important factor is that the bullish fund volume can grow to a big level or not, it will determine the trend will be a new bullish or just a rebound.

MACD and price index indicate a bottom divergence pattern and the selling volume of this stage is obviously lower than the past one. This is also a signal that the bearish funding level is getting weak. Investors should remind that it’s possible to fall deeper than $9100 as the market is changing at any time, however, the rebound possibility is larger than falling.

Level Character1D – consolidation

Yesterday, BTC did not stabilize after briefly consolidating above $9,500. The bears continued to suppress the price to the bottom of the strong support area near $9,100. There is still no stop falling signal until now. OKEx analyst Neo believes that the active selling funds of BTC in the past two days cannot be regarded as a signal that a large-scale downward trend has begun. From the analysis of the hourly volume, it is not that the selling volume is too high, but that there are too few active buying orders, price has fallen to a certain key point and has not taken the initiative to undertake. As a result, some retail investors who are still in the market have chosen Closing and leaving, then forming a “touch and collapse” situation of bulls. BTC is in a key position currently, the correction to $9,100 has absorbed the recent rise to some extent. If it falls below $9,100, may mean that the recent correction has ended and the bullish will begin. Otherwise, it is a signal of the end of the callback and the next bullish is coming.

Resistance and Support level:

Short-term Resistance$9500        Medium-term Resistance$9700

Short-term Support$9100         Medium-term Support$8900

ETH perpetual contract

Level Character 1H-consoldiation

This is the 4-hour chart of ETH, after consolidating among $290 and $235 for a period of time, trend has a signal of breaking out of this consolidation area, but not the same with BTC, falling below $230 doesn’t mean that trend change into bearish as the strongest support area is between $215 and $230 as it’s the intensive trading area during the pump. Only break $215 which is the bottom of this support area means that big level of bearish is coming, or we can still call the current trend a callback.

In my opinion, if price can stabilize on $230 within the day, trend may have a chance to rebound like the green arrow. Otherwise price may fall into next support area and form a right shoulder pattern. The selling volume is lower this stage than the first two stages before, the rebound above $230 is a high possible event.

Resistance and Support level:

Short-term Resistance$245          Medium-term Resistance$255

Short-term Support$230            Medium-term Support$215

XRP perpetual contract

Level Character1H-bearish

OKEx XRP perpetual contract: This 1 hour chart of XRP shows us that after breaking the bottom of the two shoulders which is at $0.2690, the bearish trend is continue and doesn’t have a stop signal.

MACD and price index shows that the bottom divergence is longer of XRP than the other altcoins which we mentioned.

The next effective support is around $0.2340 as it’s the neckline of the double bottom at the end of January. Investors should note that this support may not be strong as if the market can’t get warmer. $0.2130 is impossible to be tested if this happens, pay attention more about the effectiveness around $0.2340 in short term.

Resistance and Support level:

Short-term Resistance:  $0.2470    Medium-term Resistance:  $0.2610

Short-term Support:  $0.2340      Medium-term Support:$0.2130

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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