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February 18, 2019

Crypto Technical Analysis. February 18.

Bitcoin

The situation on this front has not changed much for the last 10 days. After rallying big and touching a local high at $3,700 on 8 February, bitcoin has been consolidating within a tight range between $3,530 and $3,650. Today’s firm rejection from the upper boundary has the potential to send the cryptocurrency to $3,530 and below.

Our outlook remains positive for a violation of the $3,700-$3,760 resistance area. Should this happen, the situation would be ripe for a continuation of the positive impulse, and bitcoin would next target the $4,116 technical level. For this bullish scenario to remain valid, the digital currency should keep on trading above $3,320.



Ethereum

The outlook for ethereum has been positive since the break through the 109 resistance. Furthermore, the cryptocurrency has been constantly pushing higher following its impressive rally on 8 February. In this sense, today’s short-lived spike to 139.50 is expected to be followed by a more sustainable rally. Next major target for ethereum is 167, while the support at 114 is critical on the downside.

Our strong preference is for opening long positions in case of a pullback toward the 122 area. Profits should be booked close to (but slightly below) the 167 resistance, while stops should be placed below 113.

 

Ripple

The consolidation pattern here, continuing for the last 10 days, exhibits some typical characteristics, which deserve special attention. One can clearly see the series of lower highs following the one at 0.32027. The lows are also tilted to the downside, with a fresh low currently in the making. The whole formation developing since the last rally is known as a falling wedge, and is a classical example of a trend continuation pattern in technical analysis.

In the above described setting, we need to see a sustained break through the 0.3000-0.3060 resistance area, which would in turn signal that the uptrend has been renewed. At that point, ripple will first target 0.3340, en route to 0.3825.

 

Litecoin

What we are seeing on litecoin’s daily chart is an uptrend in progress. The series of higher highs and higher lows forming since mid-December 2018 depict a textbook bullish scenario. The latest confirmation that the bulls are in firm control was the decisive violation of the 41.25 resistance, later turned into support.

We expect litecoin to continue with its solid performance. Next major target for the cryptocurrency is 57, followed by 69.30. Caution is always warranted, so long positions should have their stops placed below 41.



EOS

Despite rallying together with most of other cryptocurrencies on 8 February, the situation for EOS is still neutral. The instrument has been stuck in an exhausting range between 2.1850 and 3.0510 for the last couple of months.

Although there is a good chance that EOS will follow the general market and inch higher, we still need to see a clear break and sustained trading above 3.21 to call an uptrend for this digital currency. On the contrary, a penetration of the lower range boundary would signal that the more than a year old downtrend is renewed.

 

For the reasons stated above, we prefer to passively await a violation of either of the two range boundaries (2.1850 or 3.0510) and enter in the direction of the breakout.

 

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