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CRYPTO TRADE OPPORTUNITIES
CRYPTONAIRE LYWEEK
CRYPTO investment journal
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CRYPTO TRADE OPPORTUNITIES
BITCOIN - BTC/GBP
As we had mentioned in our previous analysis, Bitcoin hit our first target objective at £40,872 on February 21. However, after this technical level was reached, profit-booking set in on February 22, which pulled the price down to the 20-day EMA.
The long tail on the day’s candlestick shows that the bulls purchased the dip aggressively. The buyers will now have to drive the price above £41,795 to resume the uptrend.
However, the bears are unlikely to give up without a fight. They are currently again trying to sink the price below the 20-day EMA. If they succeed, then it could lead to long liquidation as the aggressive bulls who purchased on February 22 may be forced to cover their positions.
The next support on the downside is £30,936 and then the 50-day SMA. The bulls may try to arrest the decline in this zone. If they are able to do that, the BTC/GBP pair may remain range-bound for a few days.
On the other hand, if the bears sink the price below the 50-day SMA, the pair could enter a deeper correction and decline to £21,000. As the bottom is still not in place, we are not proposing a trade in it.
CRYPTONAIRE LYWEEK
CRYPTO investment journal
ETHEREUM - ETH/GBP
Ether rallied to a new all-time high at £1,456.18 on February 20, which was just short of our target objective at £1,500. Momentum traders who had purchased as suggested in our previous analysis could have made a small profit or may have closed the position at breakeven.
The Doji candlestick pattern on February 20 was followed by an inside day candlestick pattern on February 21. Both these candlestick patterns indicate indecision among the bulls and the bears.
This uncertainty was resolved to the downside on February 22 and that resulted in aggressive profit-booking from traders. The ETH/GBP pair plummeted below the 20-day EMA and fell near the 50-day SMA.
The bulls purchased the dip to the 50-day SMA and pushed the price back above the 20-day EMA as seen from the long tail on the candlestick. However, the failure of the bulls to build-up on the pullback today suggests the bears continue to sell on rallies.
The bears will again try to sink the price below the 50-day SMA and the £1,052 support. If they succeed, a deeper decline to £900 and then to £800 is possible.
On the contrary, if the bulls again successfully defend the 50-day SMA, it will suggest accumulation at lower levels. In such a case, the bulls will again try to resume the uptrend by pushing the price to a new all-time high.
We do not find any reliable buy setups at the current level, hence we suggest traders remain on the sidelines.
CRYPTONAIRE LYWEEK
CRYPTO investment journal
RIPPLE - XRP/GBP
XRP continues to be range-bound between £0.3550 and £0.48718. The altcoin outperformed and rallied on February 22 when most major altcoins were deep in the red.
However, the bulls could not push the price above the overhead resistance at £0.48718 and that attracted profit-booking from short-term traders. By the end of the day, the XRP/GBP pair had given up a large part of its gains.
Today, the bears are trying to sink the price below £0.3550. If they manage to do that, the pair could drop to the next support at £0.27916.
On the other hand, if the bulls defend the £0.3550 support, the pair could extend its stay inside the range for a few more days. A breakout of £0.48718 will signal advantage to the bulls and that may result in a rally to £0.58847.
However, as the sentiment in the crypto sector is currently negative, we are not recommending any long position in it.
CRYPTONAIRE LYWEEK
CRYPTO investment journal
LITECOIN - LTC/GBP
Litecoin rallied to £176.37 on February 20, just below our target objective at £179 as mentioned in the previous analysis. This technical level seems to have attracted profit-booking from traders as the price plunged to an intraday low at £127.22 on February 22.
Although the bulls purchased the dip on February 22, they have not been able to sustain the recovery today. This shows a lack of buyers at higher levels. The bears are currently attempting to sustain the price below £137.
If they succeed, the LTC/GBP pair could drop to the 50-day SMA and then to £115. Such a deep correction will suggest that the bullish momentum has weakened. A strong rebound off £115 could keep the pair range-bound for a few more days.
The flat moving averages and the RSI near the 50 level also points to a possible consolidation for a few days. We will wait for the decline to end and a reliable buy setup to form before suggesting a trade in it.
CRYPTONAIRE LYWEEK
CRYPTO investment journal
BINANCE - BNB/GBP
Traders who purchased Binance Coin on our recommendation in the previous analysis could have made a huge profit. Though the all-time high at £249 on February 19 exceeded our expectations, we are not complaining.
The sharp rally propelled the RSI above 94, which shows an extremely overbought condition. That attracted profit booking on February 20. The aggressive bulls tried to resume the uptrend on February 21 but failed as higher levels again attracted profit-booking.
The bulls have been defending the £156.648 level for the past few days but repeated retest of a support level tends to weaken it. If the bears sink the price below £156.648, the BNB/GBP pair could drop to the 20-day EMA.
This is an important support to keep an eye on because a break below it could intensify the selling and pull the price down to £91.686. A vertical rally usually ends in a waterfall decline.
Therefore, we suggest traders remain on the sidelines and wait for the correction to end before initiating any long positions.
CRYPTONAIRE LYWEEK
CRYPTO investment journal
