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Crypto Market Daily (2.28)| If the support area near $8,500 is effective in short-term, BTC may usher the hourly-level rebound opportunity.

2020.02.28 何, 颖

BTC perpetual contract

Level Character4H-consolidation

This is 4-hour chart of BTC, it shows us that after falling to $8500, price was rebounded just below $9000 then met resistance, combine with the low level of buying volume, it’s not easy to stand back to $9100 in short-term.

Although $8500 became the effective support currently, trend may fall below it as the strongest is around $8250. Move our sight back to Dec of 2019, BTC formed a big bottom pattern from $6500, and the first bottom of the callback was about $8250, this is the neckline of the bottom, which always have a hard support strength to the price.

It’s also easy to imagine that if this support level is also broken, it’s possible for the price to come back to 7K. Investors should notice that if selling volume doesn’t have a reducing signal at the weekend, the falling risk is getting higher, $8250 will be tested at that moment.

Level Character1D - consolidation

Yesterday, BTC failed to get enough support near the critical bottom of $9,100, and fell to $8,500 in just a few hours,now temporarily entering a consolidation trend. OKEx analyst Neo believes that the decline of $ 9,000 means that the current round of bullish has ended to a certain extent, but the long lower shadow formed after closing yesterday also reflects that the bulls still have a certain ability to undertake above $8,500. In view of the fact that the break of the crucial point has a great negative impact on bullish sentiment, the support strength of this position has yet to be tested. From the perspective of the hourly trend, a certain degree of rebound may occur next week if price can stabilize on $8,500 at the weekend. However, the current market is not willing to rebound, and it is likely to fall below in short term and received strong support around $8,250 (The bottom neckline at the end of last year). Since this position was the starting point of the previous bullish, the price may return to $ 7,000 if can’t stop declining.

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, ETH rebounded stronger than BTC yesterday. After breaking upwards MA(30) at 1 hour level, price is now suppressed by MA(60). As the consolidation space gradually narrows, breakthroughs may occur at any time. Investors can continue to pay attention to the support effectiveness of $215, it will form a short-term double bottom rebound pattern if it’s effective at this weekend. Otherwise, it will have a certain probability to test $200.

Bearish volume is getting lower after reaching to the highest point, this probably means that bears temporary resting signal.

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 fell below MA(60) and MA(30) again after breaking both of them shortly, this is a weakness of the bulls’ rebound, not enough funds flow in make the rebound can’t keep longer.

The good news to bulls is that selling volume level in recent falling stage is lower than the previous when falling from the top, if the volume can’t extend, XRP has a chance to form the second bottom around $0.2240, this means the rebound may come in next week. However if the selling volume increase in short-term, $0.2240 won’t be effective and $0.2130 should be the next support level as it’s the bottom of the callback in January.

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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