Academy Trading Ideas Article

Crypto Market Daily (3.3)|Focus on whether BTC can stand steady at $8,700 in short-term, and there is still falling risk if the rebound can’t break the previous high.

2020.03.04

BTC perpetual contract

Level Character1H-bearish

This the 1-hour chart of BTC, the trend has been successfully formed a double bottom as the chart shows, the rebound was suppressed around $9000, the position is the necessary one that trend has to break if rebound can be continued.

The callback in the morning is breaking below the neckline of the bottom which is around $8800, this always be a signal that the rebound is going to the end, remind investors that this breaking can also be false if price stand back on $8800 within the day.

The next effective support level is around $8500 again and if trend touch it for the third time, falling risk is higher than before, note the volume growing condition and find the entering choice after breaking.

Level Character1D – consolidation

This is the 1-DAY chart of BTC, today, it’s possible to form a little bearish candlestick when closing, this is a signal of weakness of the bulls as they have not enough strength to pull the price even back to $9000 initially, therefore the falling risk is higher in short term as we should focus on the support area near $8500 again, it will still remaining a rebound if the support is effective for the third time.

Remember that without stabilizing on $9000, trend will test the area between $8200~$8500 again and again, once the support area is breaking through, the bearish will come.

A longer rebound period signal is that rebound should accompanied with the growing bullish volume, or is just an hourly level of rebound, won’t last long.

Resistance and Support level:

Short-term Resistance$8800        Medium-term Resistance$8970

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

ETH perpetual contract

Level Character 1H-bearish

At 1-hour level, ETH just rebounded to about $234 then fell again, however, price stop declining above the upper edge of the triangle consolidating area, this means that trend won’t fall and test bottom of $212 again in short-term.

Investors should remind that if without new fund flow in during this period, rebound range won’t be big , breaking $234 will be a challenge to bulls and $240 is impossible to test in that kind of condition.

Therefore, investors should focus on the volume level on hourly chart and if price is rising and buying volume is increasing quickly, $240 is possible to be tested, otherwise, $212 support will be the last defense before bearish is coming.

Resistance and Support level:

Short-term Resistance$226          Medium-term Resistance$234

Short-term Support$226            Medium-term Support$212

XRP perpetual contract

Level Character1H-bearish

OKEx XRP perpetual contract: The callback of XRP in the morning is stronger than ETH as it has almost touched the upper edge of the consolidating area and then stabilized temparorily.

The first resistance within the day is around $0.2420 and the hard resistance in short-term is around $0.2475, as the outflowing of the fund is more than inflowing according to the chart, this is a weakness signal of bulls, therefore I believe that after a small range of rebound, trend will test the upper edge again at night or the next morning, investors should focus on the effectiveness of the edge.

Resistance and Support level:

Short-term Resistance:  $0.2420    Medium-term Resistance:  $0.2475

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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