Weekly Cryptocurrencies technical outlook - March 25.

The crypto market had a direct correlation to the rest of the financial instruments and risk appetite this past week. There was an attempt to continue the bullish rally started in March but the bears stepped in with heavy-volume sell orders and most of the cryptocurrencies slipped back to levels seen at the beginning of the trading week. Two exceptions are worth noticing: Cardano overperformed the crypto market, adding more than 20% to its price, and Bitcoin Cash, which continued the rally and soared by almost 9% in last seven days. The leader of the trading volume and market cap - Bitcoin - remained flat compared to the previous week price, staying slightly above the psychological round-figure mark of $4000. The second coin from the trading volume point of view was Tether and it remained also flat. Etherium was under selling pressure and its price slid 2%, trading around $136 at the time of writing this article. Ripple (-2.25%), EOS (-3.76%) and Binance Coin (-5.54%) were among the weakest cryptocurrencies, while Litecoin held previous gains above $60, losing less than 1% of the price and increasing the market cap to $3.71 billion. The price action reminded more a consolidation sideways range, gathering momentum before a breakout. However, the direction of a possible breakout is unclear as both bulls and bears might take the crypto market under control. This week is the last trading week in March and it should bring more light to next crypto investors’ sentiment.

BTC/USD: Neutral.

Bitcoin was climbing North throughout the trading week and had re-tested the psychological resistance of $4150, according to Bitfinex. However, the lack of further development and exhausted bullish momentum gave a chance for bears to perform a counterattack. BTC/USD dropped back below to $4000 support, staying in a tight range slightly above that level. It’s worth mentioning the large red H4 candlestick on the chart below, which closed not only below the EMA34 support but also breached the green ascending support trendline. That’s a dangerous sign for the uptrend started on March 5. Another pessimistic factor is that the fast RSI oscillator slipped below the 50% level, went back to it on Saturday (red arrow) and is pointing to further weakness currently. Although there is no close price below the upper line of the yellow range ($4027), we suggest that another test of that horizontal static support is unavoidable and it would not hold Bitcoin price from further Southwards action. We would use a breakthrough trading strategy, placing postponed sell-orders right below the $4000 level. But the potential losses and targeted profits have to be rather tight for that trading approach as it’s quite aggressive. Conservative traders, in contrast, should consider staying squared on Bitcoins, waiting for a more clear signal from the technical side of things.

Weekly Cryptocurrencies technical outlook - March 25.



ETH/USD: Neutral.

Etherium has a similar chart setup to Bitcoin. The series of lower highs weigh on crypto investors’ mood and bears seem to come back into the market. The plunge was charted on March 21 and it pointed to a bearish breakthrough of the bottom Bollinger Bands line. However, the long downside shadow of that four-hourly candlestick shows that the demand is still strong for ETH/USD and crypto investors gladly buy the coin on dips around $135.00. The ascending support trendline was also breached and it worked as the resistance during the bullish retracement on March 23. Given the fact that the Bollinger Band changed its direction of all the three lines to the negative, we might see a deeper slide of Etherium towards $132.62 (the lowest close price on March 12) and beyond. In case if that static horizontal support failed to limit the downside action, ETH/USD would complete the bearish reversal pattern and the uptrend will be over. Until then, the risk of Northwards action is still on the table. From the conservative point of view, it would be technically correct to buy Etherium on a potential test of that support, counting on a bullish bounce, if not another rally towards resistance level of $145.54.

Weekly Cryptocurrencies technical outlook - March 25.


LTC/USD: Bullish.

Although Litecoin struggled to continue the uptrend, the long-term technical sentiment is still bullish on the daily chart below. The Ichimoku Cloud trend indicator does not have any signs of a bearish reversal. The span has a huge positive range, all of the lines are placed in the right order to proceed with the upside action. The recent slide was limited by the Ichimoku Conversion Line, which worked as the support curve on March 21. Even though the recent price moved below that blue curve on the sideways action during the weekend, the bullish formation is still in play. A conservative trading approach suggests better price levels before entering the market. A perfect depth would be seen if Litecoin dropped to the Ichimoku Base Line support curve ($53.87 currently). If that happened, we’d gladly buy LTC/USD. But such a deep retracement might not happen given the fact that Litecoin was overperforming the cryptocurrencies market several weeks in a row. In that case, traders should consider seeking depth on shorter timeframes to buy Litecoin. Some fundamental trigger might help the bulls to renew the buying pressure. This is why another week of sideways consolidation is also possible as crypto investors could keep gathering momentum for a breakthrough.

Weekly Cryptocurrencies technical outlook - March 25.


EOS/USD: Bearish.

EOS had drawn a descending channel on the four-hourly chart below. The support trendline of the channel is more of a median rather than classic support as it connects high prices printed on March 12 and 14 together with low prices charted on March 20. However, that’s exactly the parallel clone of the resistance trendline build with all of the graphical analysis rules. The fate of the channel is also unclear as other technical tools have a controversial performance. Williams %R fast oscillator with a modified period of 21 bars points south with plenty of room to go before the oversold level. But Parabolic SAR indicator’s dots are still placed below the current price, which is the bullish sign. The threshold is the support level of $3.5900 and the next price action will be determined by the outcome of a potential test of that support. So far, EOS looks heavy and a deeper slide is likely.

Weekly Cryptocurrencies technical outlook - March 25.

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