Weekly Cryptocurrencies technical outlook - February 4.

Top cryptocurrencies were trading in a tight range this past week. Despite some growth in the risk appetite in other financial markets, crypto investors were unable to lift prices for most popular coins. TRON, Stellar and Bitcoin SV were among losers this week with -13.08%, -16.86% and -12.21% seven-days change in value, respectively. Etherium (-6.18%), Cardano (-7.81%) and Monero suffered moderate losses, while the slowest pace of decline was noticed for Bitcoin (-3.33%), Ripple (-2.11%) and Bitcoin Cash (-3.39%). Litecoin was the only gainer among major cryptocurrencies, adding 2.89% to its value. There was also a jump in the trading volume of Tether (24.5% total volume) which finished the trading week almost flat (-0.89%), bouncing off the local bottom. Bitcoin and Etherium were traditionally leading the trading volume percentage with 32% and 18% respectively. The market cap was divided by same popular coins such as Bitcoin ($60.79B), Ripple ($12.56B) and Etherium ($11.34B). The weekend brought a mixture of directions in the price action for different cryptocurrencies, promising an interesting trading week ahead.

BTC/USD: Neutral.

Bitcoin had found a local bottom last Tuesday, bouncing off the weekly low at $3430.0. Despite the absence of many sellers in the market, the bulls managed to chart just a double-top formation with two peaks at $3574.0 and $3581.0. Given the tight sideways range of the whole trading week ($150 amplitude), the consolidation might turn into a spring breakout. The only question is about the direction. The general long-term trendline remains bearish as BTC/USD failed to get out of the descending channel. However, the recent price action was bullish with three consecutive higher lows since the bottom on Tuesday. The intraday technical outlook is also mixed on the 4-hour chart below. MACD is slightly bullish with its histogram in positive territory and both lines reached the zero level from below. Fast RSI oscillator is hovering around the 50% level, pointing to uncertainty in the market momentum. The exponential moving average with 89-bars period remains well above the current price which suggests a more bearish sentiment rather than bullish attempts to reverse. The most attractive trading strategy would be selling highs on bullish whipsaws as it’s hard to image Bitcoin to breach the current sideways range just like that. At the same time, targets have to be kept tight and the trading cycle short, as the bearish breakout is also less likely. So, aggressive traders could even consider buying Bitcoin in the lower band of the range around $3400.0/40.0 after taking profits.

Weekly Cryptocurrencies technical outlook - February 4.


Etherium has a several technical pattern intraday. The 4-hour timeframe is uncertain with tight sideways consolidation range in play. The largest achievement was at the price of $114.33 last week, which does not leave lots of hopes for the bulls. On the other side, the local bottom of $103.20 together with the round-figure psychological mark of $100.0 represent strong technical support. Therefore, it’s hard to expect a breakout this week unless something crucial happened on the fundamental side of things. ADX and DI technical indicator also point to uncertainty as all its three lines are hovering around the level of 20.0 with multiple crosses. Parabolic SAR has jumped below the price recently after the bullish run toward the weekly high, however, the lack of bullish momentum might force the indicator to change the sentiment quickly. We would recommend staying out of Etherium unless further direction clarifies.

Weekly Cryptocurrencies technical outlook - February 4.


LTC/USD: Bullish.

In contrast to the two most popular cryptocurrencies, Litecoin managed to show bullish signs of a possible breakout. The sideways consolidation range could turn into a horizontal base for the upcoming uptrend, as the sequence of higher highs has been charted and the top band of the range has been breached. LTC/USD posted the highest intraday close price since January 10 ($35.129), which was supported by the continuation signal from the Bollinger Bands indicator. Williams %R oscillator is showing sustainable bullish momentum with the current value reaching overbought territory. We would suggest a deeper retracement toward the middle of the range around $32.20/40, where we’ll be looking for intraday signals to buy Litecoin. Targets depend on the trading strategy and patience. The Buy-and-hold approach could be used for the long-term perspective, while short-term traders could start taking first profits in the range of $38.50/40.00 which works as the nearest resistance. Downside price action is less likely unless something extraordinary happened, so stop-loss orders have to be tight as well. Anyway, the level of $30.00 looks solid enough to hold the bears in their attempts to push LTC/USD lower.

Weekly Cryptocurrencies technical outlook - February 4.


XRP/USD: Bearish.

Ripple had tested the upper range of the Ichimoku Cloud trend indicator (the weekly high of $0.3428) but failed to break it through and slipped back down toward the support at $0.3008. The second attempt to recover was the result of a sideways consolidation but not bullish momentum, so it’s hard to see Ripple going far North this week. The span itself failed to perform the bullish cross after narrowing the range. Despite both lines have entered the span, the overall technical outlook is negative for the nearest term. If the round-figure support of $0.3000 failed to hold prices, then a bearish continuation would take place toward $0.28524 which is the lowest close price in 13 months.

Weekly Cryptocurrencies technical outlook - February 4.
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