The crypto market continued showing signs of a rebound this past week. Major coins have almost completed the technical reversal pattern, paring a significant part of recent losses in prices. Moreover, several key technical resistance levels have been breached, which points to the fact that crypto bulls are coming back to the market. The trading volume and market cap also confirmed those assumptions as the most popular cryptocurrencies were in demand, underlining the growing confidence of traders and investors. Although the traditional leading cryptocurrency - Bitcoin - charted a moderate growth of the seven-days change (2.36%), investors increased the market cap to $65.65 billion, which was a supportive factor. Etherium was traditionally the second largest coin among majors, adding more than 13% to its value and testing the highest price levels since January 10. ETH/USD also added the trading volume for almost 10% compared to the previous week, nearing to an important phycological barrier of $140. Ripple and Litecoin were almost flat last week, while EOS and Bitcoin Cash added 6.08% and 4.03%, respectively. Stellar was almost unchanged in the seve-days perspective, while TRON and Tether lost attractiveness with a decline of -6.23% and 0.52%. The only positive news for Tether though was the fact that the cryptocurrency remained among the three most heavy-volume traded coins with 26.48% chare in the trading volume.
The four-hours intraday chart below shows the same descending channel we used to point out before. BTC/USD was accumulating bullish momentum throughout the past week with a tight sideways consolidation range. The fact that prices did not drop lower than $3640.0 confirmed the strength and caused a bullish breakout of the channel. Bitcoin charted higher-highs technical pattern ($3864.0 as weekly high), suggesting a further buying pressure in the nearest days if not weeks. The nearest barrier for the bulls is placed at the level of $3882.0, and if breached, the uptrend would accelerate. Bitcoin bulls could target as high as $4200.0, the level seen during January's consolidation before the sharp sell-off. However, the main target to sustain the momentum and complete the bullish reversal pattern is to hold the gains above $3650.0/3750.0 zone. Otherwise, a deeper slide is possible. We would use the buy-dips trading strategy this week, keeping stop-loss orders tight and the time spent in market short. The 55-bars simple moving average might work as the level to pull the trigger.
Etherium seems to work as a leading indicator for the whole crypto market. Our assumption of the bullish momentum to keep the sustainable impact was confirmed recently. The Bollinger Bands Indicator's bullish continuation breakout signal worked well, pointing to higher prices in the nearest future. Moreover, both BB lines had increased the distance, widening the volatility impact, which is also positive for Etherium. Nothing to be changed in the trading approach so far, the buy-and-hold trading strategy should keep working this week as well. Our targets have been achieved, which allowed us to shift the goal North. If the barrier of $140.0 was breached completely, then ETH/USD should eye $151.80 resistance for at least.
Although Litecoin managed to hold the gains and stayed well above $40.0, some technical signs showed the bullish momentum exhausted. The long upper shadow of the candlestick on February 17 ($46.333 weekly high) pointed to a large volume of postponed sell order in that territory. Ichimoku Cloud trend indicator turned bearish intraday as the span performed the bearish cross (see the four-hours chart below), despite its lines stayed in the bullish mode. That combination of technical factors points to an uncertain period with a large likelihood of a deeper bearish retracement rather than significant bullish achievements this week. Therefore, we would stay out of the Litecoin this week, unless something meaningful happened on the fundamental side of things. At the same time, if LTC/USD dipped in the Ichimoku span, we would consider fresh long positions in the range of $42.00/42.50, even though chances are quite low for such a scenario.
EOS had charted a flag continuation pattern on the four-hours intraday chart. The sequence of higher lows allowed as drawing the ascending green trendline which should work as the technical support in the nearest future. Nevertheless, the upside momentum is still limited with the horizontal static resistance at $3.0693, which represents strong levels seen before on larger timeframes. EOS/USD is still vulnerable to a sudden drop in case if the bulls failed to break that resistance. Both intraday oscillators are supported by the confirming divergence though. That's a strong bullish signal. The Williams %R oscillator is traditionally faster than the Relative Strength index (with equal periods), and it's nearing the overbought territory. Anyway, the bullish continuation is more likely rather than a sudden plunge so we would keep buying EOS this week.
Ripple failed to show the same bullish momentum as previous cryptocurrencies. XRP/USD remained in the same sideways consolidation channel as before, charting a couple of fake breakthroughs on the four-hour timeframe. Parabolic SAR jumped up and down several times which only underlines the market's uncertainty in the trend direction. We would suggest a buying opportunity at the bottom of the yellow channel, taking in count the overall crypto market positive sentiment. However, the recent technical sentiment is more mixed rather than bullish.