Market Analysis for 19.02.2018

Bitcoin Cash Price is Moving Higher

The Bitcoin cash price or BCH/USD, has moved higher this past week as cryptocurrencies are recovering. This is index is now trading above the key technical level ay $1400 and traders are now looking to challenge the upside barriers lining up at $1600 and $1750.

This digital currency has made some solid gains as it has recovered nicely from $1180 this week. The gain comes with heavy bullish momentum and it has broken, easily through, the technical resistance levels that line up at $1200 and $1,400. The online currency index even broke though, during intraday trading, the resistance level of $1500 before sliding back down to $1488. The BCH/USD market hit a high at $1618. Right now, price action has lost some steam however, looking at the below daily chart, you will note that the market is well supported at $1,400. There is another good layer of support lining up at $1185.

There is a new and key, bullish trend line forming from the support at $1480. This cryptocurrency is showing some signs of weakening. However there are a few key support levels in play, if it breaks below $1400 on a daily closing basis. The other two technical support levels line up at $1185 and $1450.

Any dips lower are likely to find support at $1400. Looking higher, BCH needs a daily close above the technical resistance level at $1600 before a challenge of $1700 then $1750 is possible.

Looking at the stochastic indicators, briefly, the MACD is still showing the bulls have some steam left. The relative strength index (RS), 4 hour, is also inching higher towards 70. Keep in mind there is key support lining up at $1400 and key resistance lining up at $1600 and then $1,750.

Market Analysis 16.02.2018

Ethereum Breaks above $900

Like other cryptocurrencies, including bitcoin, Ethereum is mounting a bit of a comeback.  The ETH/USD market has pushed higher and is back above a former key support turned resistance level at $900.

There has been a renewed recovery and push higher in this market. This recovery started near the technical support level at $820, which is now the swing low. Price action moved higher breaking above a technical resistance layer, now support at $860 then the level at $890. The most important aspect of this recovery is that Ethereum broke above a key resistance cluster zone that ranged from $895 to $900. Price is now challenging the resistance level that lines up at $920. Please refer to the below chart.

Key support levels that traders should watch highlight this bullish trend. The support at $860 is holding. The key $900 support level is recast and back in play as a key psychological and trend changing level. Any breaks lower should be capped at this support level in the near term. Two other key support levels are at $870 then the rising trend level support at $860. As long as price remains above the latter level, the current upswing is on.

Looking back towards the upside in this cryptocurrency market, there is a key technical resistance level in play at $920. A daily close above this resistance barrier will challenge the next upside barrier that lines up at $950.

Keep in mind to watch the key downside barriers that line up at $900, $870 and $860 especially with the latest strong inflation numbers sending Treasuries higher. This, in theory should support a stronger dollar limiting Ethereum’s recovery in the short term.

Market Analysis for 15.02.2018

Bitcoin Continues to Recover now above $9500

The bitcoin market, BTC/USD, has been on a bit of a recovery as the digital currency is now back to trading above $9,500. Traders are now eying the critical and psychological technical resistance barrier at $10,000. Right now, price action has moved higher and is challenging the upside barrier of the descending channel. This resistance level is supported by the 100 day moving average.

The 100 day moving average is below the 200 day moving average. This indicates some more weakness in this market. So, traders should be cautious as the bears could reenter the market moving the price of bitcoin lower again. There is a formidable upside barrier at $10,000 which could hold, thus capping this recovery and sending this market into consolidation mode. Please refer to the below daily chart.

Looking at today’s stochastic indicators, they are moving lower indicating bullish pressure. The relative strength index (RSI) is moving side to side but is near the overbought levels. This is another indication that buyers are being cautious at this level. Bitcoin could move lower to the trend channel support or even the swing low.

Looking at the economic calendar, the U.S. consumer price index (CPI) came in stronger than expected overnight. This will support the U.S. dollar and weigh on riskier asset classes like bitcoin. The Federal Reserve is likely to tighten to combat inflation putting a dent on business investment and consumer spending.

There is some good news for bitcoin and other cryptocurrencies as there are waning fears over new regulations. Along with a lack of headlines regarding regulations, the United States Senate is monitoring what they feel are encouraging developments in cryptocurrencies. Other countries are expected to follow the U.S., possibly bringing buyers back into the market.

Market Analysis for 14.02.2018

Ethereum fails to hold the Support Level

The entire cryptocurrency market has been under pressure the last few weeks. Even though bitcoin has seen a bit of a recovery, Ethereum has not and remains under pressure. Ethereum trades under the symbol ETH/USD. Please refer to the below daily chart for today’s technical analysis.

Ethereum’s market failed to stay above a key technical support at $900. The market tested this area over the weekend and failed to break or close below this level. ETH/USD has now fallen below that support level to hit a low of $865. Ethereum briefly touched $821.10 during the day.

Looking at the charts, there is still some upside potential in this market. A bullish trend line is forming and we could see a challenge of the technical resistance level that lines up at $850. In likelihood, we could see this market range between the support at $835 and the upside barrier lining up at $850 before recoiling higher.

There is a key support level lining up at $830. This is a key support level and boundary for a bullish view. Looking at the stochastics for the ETH/USD market, the relative strength indicator (RSI) is under 50, which indicates oversold conditions in this market. However the short term moving averages are indicating bearish momentum for Ethereum.

Fundamentally, on the economic calendar, things are fairly quiet this week. However, today the headline consumer price index (CPI), for the United States, is due out. This reading is expected to contract a bit and it will be a bellwether as far of future rate hikes from the Federal Reserve Bank. The Federal Reserve is expected to raise rates at their March meeting. Weaker inflation could mean that the Federal Reserve will move more cautiously with interest rates causing weakness with the U.S. dollar.

Market Analysis for 13.02.2018

Bitcoin continues to Trade Steadily

The benchmark bitcoin market, BTC/USD, continues to trade within its descending channel. The digital currency is challenging the channel resistance. Should this occur, on a daily closing basis, then this could indicate a longer term uptrend in play.

Price action, in this market is currently following the upper barrier of the above mentioned downward sloping trend channel. This level, today is around $8,000. Right now price is above this level near $8,700. Traders should watch the resistance levels that line up between $9,000 and the key psychological and former support barrier at $10,000. The latter will be a strong barrier to overcome and would take a significant amount of volume to break.

Right now the 100 day moving average is above the 200 day moving average. This would suggest the path of least resistance is in favor of the bulls, for now. The 200 day moving average is also acting as a solid layer of support to hold any moves lower.

Taking a look at stochastic indicators, for today, they also indicate that the bulls are in the game for now. The relative strength index (RSI) is inching higher from oversold. This is supporting buyers of the cryptocurrency. Also the gap between the two above moving averages has widened helping to support the theory that there is room for upside in the BTC/USD market.

Looking at the economic calendar, that could affect either bitcoin or the U.S. dollar, there are no major events today or for the rest of the week lined up. This means that this market could follow sentiment in the global equities market, as well as some drifting. Still, investors are still worried about tightening of monetary policy with global reserve banks. This has caused for a great deal of volatility over the last two weeks or so.

Market Analysis for 12.02.2018

Bitcoin Recovers over the Weekend

Over the weekend, the much battered bitcoin market, including the benchmark BTC/USD, recovered towards $9,000 before the recovery stalled and fell lower. Bitcoin saw a steady climb above the resistance level at $6,500. Price action then took out two more key technical upside barriers at $7,000 then $8,000. However, the recovery stalled at the technical resistance barrier located at $8,900 and well below a key technical resistance barrier lining up at $9,000. Bitcoin then started losing ground as the recovery ran out of steam. Please refer to the below chart.

Traders should note that there is a bearish sloping trend line forming. Today’s trend line resistance level lines up at $8,200. You can see this trend line on the daily and four hour charts. This trend line will be a formidable barrier for the bulls to overcome as it failed, on Saturday, at $8,900 then moved lower.

Bitcoin Correcting Lower

Right now, bitcoin is correcting lower. This market is back below $8,100. Price action is now probing below the 23.6 percent Fibonacci level that retraces the last wave of gains from the low of $5,820 to the high at $8,940. It would seem the bear are not done yet and bitcoin still has some more losses in store for traders and market watchers.

There is key support lining up at $5,820. As far as resistance levels are concerned, the key upside barrier is at the trend lie resistance. This level lines up, for today at $8,200. There are several other support levels in play today. These levels line up at $7,450 then $7,250 ad finally a support level at $7,125.