Weekly Cryptocurrencies technical outlook - February 25.

The crypto market had finally started the bullish rally, for which the technical background was getting prepared for quite a while. The recent price action is solid and sustainable and it reminds the best times of the crypto boom in 2017. If the bulls were able to hold the gains and withstand the selling pressure from the bears, then we might come back to the situation when prices change so rapidly that there’s no even chance to get on board of the departing train (or F1 bolide, if you will). All of the major coins were in line with the market’s rush to get as much money into cryptocurrencies as possible. The leader in both market cap and trading volume was traditionally Bitcoin ($73.32 billion, 29.41% respectively) but the gains in its price were comparatively modest (15% approximately). The most rapidly-growing cryptocurrency was surprisingly EOS which added more than a half to its price (+51.32% 7-days change) but remained the fourth in terms of the market cap ($3.88 billion) and trading volume (5.40% share). Etherium and Bitcoin Cash gained almost 30% with $17.12 and $2.73 billion in the market cap, accordingly. Litecoin, Binance Coin and Stellar climbed by 20%, while Ripple and TRON were the slowest cryptocurrencies with an approximate gain of 11%. The only exception in that bullish rally was Tether which remained almost flat this past week.

BTC/USD: Bullish.

The condition for the bullish breakout that we mentioned in our previous technical forecast has been achieved as Bitcoin price breached the horizontal static resistance of $4221.5 (the highest daily close since December 20). The upside pressure is reliable and those traders who missed the price action should not hope for a deep retracement to join the party. The descending channel has been clearly breached and a new median ascending trendline can be drawn now. It connects lows charted on December 14 and January 13. That blue dotted line also held the price from further slide this past week, and the bounce back down was short-lived. Another potential support is the 13-days simple moving average with the current value of $3894 (this curve is rising). As a result, the range of $3900/4000 looks attractive for fresh long positions, using the buy-dips trading strategy. Aggressive traders could even consider buying Bitcoins right from the current price, counting on an acceleration breakout. The most attractive feature of this pattern is that the nearest resistance is placed far North from here - the range of $5425/5753, which was a consolidative pit-stop for the bears in mid-November. If the recent momentum was able to prove its sustainability, then we would see much more expensive Bitcoin in the nearest weeks if not days.

Weekly Cryptocurrencies technical outlook - February 25.


ETH/USD: Bullish.

The daily chart of Etherium looks even more convincing. The main achievement was the bullish cross of the Ichimoku Cloud trend indicator which never happened since the beginning of this year. The same higher-highs pattern is seen here as for the Bitcoin chart and Etherium does not have any significant technical resistance before $208 level. There might be some delays around $174/179, however, that defensive bearish barrier seems like an easy nut to crack for the bulls, given the recent speed. Another interesting observation is that ETH/USD could form a new ascending channel (blue dotted) if the price was able to break through the lower line of it. The upper line of the range is a median though, as it connects lows from November 26 and highs on January 2. However, the angle looks rather moderate compared to other sharp options that could be on the table. Anyway, the buy-dips trading strategy is also applicable here with Ichimoku’s conversion line ($146.50) and baseline ($136.26) as the nearest support levels. It’s rather doubtful that bears were able to reach such depth in a potential retracement but it’s technically correct and comparatively conservative to wait until Etherium bounced South before entering new long positions.

Weekly Cryptocurrencies technical outlook - February 25.


EOS/USD: Extremely Bullish.

EOS managed to surprise even our technical analysts. What a speed it was! +50% in seven days! It would not be easy to count all of the bullish achievements for EOS/USD last week, but we’ll try though. First, the price had reached the barrier of 233-days (!) simple moving average, which never happened since early July 2018 (8 months!). Second, the price is already testing the bottom of the crucial sideways range (yellow) which used to hold prices for three months from early August to mid-November until the latest bearish acceleration started. Third and, possibly, even the main observation is that the slow MACD trend indicator turned bullish with its lines getting far from the zero level. The last time such a spike was noticed in April 2018 (10 months ago). If you scrolled the chart left you would see how far North that spike lifted EOS price: that was an impressive 300% rally in 18 days. It’s tough to make such incredible prediction based on the technical analysis, however, the history loves repeating itself. Therefore, don’t be surprised to see EOS/USD trading around $12 before March 15. Anyway, the nearest target is $6.7101 and if the bulls were able to break that resistance as fast as last week, then the road to $9.45 (the highest daily price noticed on July 3 2018) would be open.

Weekly Cryptocurrencies technical outlook - February 25.


LTC/USD: Bullish.

We’ve been pointing to Litecoin as one of the overperforming currencies, and it’s not a huge surprise that LTC/USD gained only 20% last week. The thing is that the cryptocurrency already made significant bullish achievements before and the upside momentum was not so sharp as the result. It’s been said so many words about the Litecoin’s ability to run North quickly so we would not repeat ourselves, adding two short updates. First, LTC/USD had breached the ascending channel on the daily timeframe (blue). Second, the nearest target is the highest price on September 4 2018 (blue horizontal line), which is placed exactly in the middle of the distance between the current price ($53.31) and 365-days simple moving average ($81.19 currently). The most interesting thing is that such a bullish continuation would even force the SMA365 turning North as it would be just a partial recovery from the long-term bear market’s action which started after the blood bath in December 2017.

Weekly Cryptocurrencies technical outlook - February 25.
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