Academy Trading Ideas Article

Crypto Market Daily (2.27)|$8500 temporary becomes an effective support of BTC, rebound may happen if 30-hour moving average can be broken.

2020.02.27

BTC perpetual contract

Level Character1H-bearish

This is 1-hour chart of BTC, market is turning into scaring after falling $9000 yesterday, and there is almost no rebound after every short-term consolidation, this indicates that just few investors opened the long position and this led the rebound weak.

The growing selling volume last night gives us a signal that still exits large amount of profitable funds which didn’t close, the target of these funds is to kick out of the long positions which held in retail investors then absorb the counters. This will make them easy to control the market in greatest extent. The reason I said this is to remind investors don’t to chase short currently as the price may possible to rebound here as the downward support level is absolutely hard, it used to be a double bottom which I marked on the chart.

Investors can enter the market if price can rise and break MA(30) within the day or tomorrow, and if trend come into consolidating and without any breaking, you’d better wait, as it’s possible to dump again.

Level Character1D – consolidation

From the daily chart of BTC, it’s clearer than the hourly as we can find that this callback from $10500 almost taking most profit which from the beginning around $8200. Review the history, when trend built the bottom around $6500, $8200 is the bottom of the callback, therefore, price will get support among the area between $8200~$8450, break this area means the big trend is changing into bearish, it’s easy to break? No, I believe it won’t be easy as we can move our sight to the volume which I market on the chart, buying volume is in the highest level recently as this area exits so many long positions, it’s a hard support strength and if bears can’t increase the selling volume to a higher level, trend may not easy to break this support in short or even mid-term.  

Resistance and Support level:

Short-term Resistance$8850        Medium-term Resistance$9100

Short-term Support$8500         Medium-term Support$8200

ETH perpetual contract

Level Character 1H-bearish

This is the 1-hour chart of ETH, trend is rebounding after touched the bottom of the intensive trading area which is around $215 in the morning, this is in predictable as this area is a hard support level in this bullish trend period, price got support here means that bearish is still not coming, and I believe that if this period of dump is a callback, consolidation pattern will appear in next one or two days and rebound may happen, and we have to know that if MA(30) can’t be broken in short-term, I don’t recommend investors to enter, the better choice will appear if price can stabilize on MA(30) or $230.

Long-term trend will still be bullish until $215 was broken.

Resistance and Support level:

Short-term Resistance$230          Medium-term Resistance$245

Short-term Support$215            Medium-term Support$200

XRP perpetual contract

Level Character1H-bearish

OKEx XRP perpetual contract: XRP also stop falling after got support near $0.2240 which is the neckline of the double bottom in the end of January, this area has became the market support. The rebound strength of XRP is a little bit stronger than ETH and BTC as it has already broken MA(30), but investors should note that the breaking is not determined as a ture one, better wait for next several hours to see if price can still stabilize on it, and the first hard resistance is around $0.2470.

In my opinion, it just has a little possibility that price can touch $0.2470 within the day as the buying volume is still in a low level, shock in a narrow range will be possible in short-term.

Resistance and Support level:

Short-term Resistance:  $0.2470    Medium-term Resistance:  $0.2670

Short-term Support:  $0.2240      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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