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March 5, 2019

Crypto Technical Analysis. March 4.

Bitcoin

Following the unsuccessful test of the $4,200 resistance on February 24 and the profit taking that followed, Bitcoin has been in consolidation mode. Although the range-bound move could continue for some more time, we expect the cryptocurrency to eventually drift lower toward $3,530. The $3,640 local low can be treated as a signal level in this respect.

The alternative scenario, which we do not favor at this point, is a break through the upper range boundary: $3,900. This would negate the negative bias and would expose $4,200 for a repeated test.

Right now we prefer to passively await a violation of either of the range boundaries. Once that happens, we would ride the wave by opening a position in the direction of the breakout.

Ripple

What we are witnessing here is an absolute lack of trend dynamics. Ripple has been stuck in an exhausting consolidation since the end of January. At this point, we favor a gradual slide to the lower end of the range at $.0.28. The latter should provide a base for a new bounce toward the $0.34 resistance zone.

If the market, however, succeeds in driving the cryptocurrency past the $0.28 barrier, all eyes would be focused on the support at $0.2450, which will quickly drive Ripple to this technical level.

The smart trading strategy on this instrument includes buying XRP slightly above $0.28 and selling it around $0.34; stop losses below the former and above the latter level are an absolute must.

Ethereum

Ethereum demonstrates inability to even slightly recover after the heavy sell-off, which took place on 24 February. This weakness indicates that the cryptocurrency is set to extend its slide further. First target is $115, followed by the crucial $100 psychological support.

Current market levels around $125 provide good opportunities to short Ethereum, targeting $116 and $102 in stages. Stop orders should be placed above $142, the technical level below which the outlook remains markedly bearish.

Litecoin

The heavy selling pressure Litecoin encountered just below $53.50 set the short- to mid-term bias to negative. What we are currently witnessing is a correction of the heavy fall, which took LTC to as low as $42.47 that same day in late February. Right now, the market looks ready and set for another downswing toward $42.40, en route to $39.60.

It should be kept in mind, however, that outlook on the higher frames is still on the positive side. Having said this, we favor the downside to be capped around the $39.60 support. Somewhere around that point, Litecoin should bottom out and rally back toward the $53.50 resistance.

If the depicted scenario plays out, we would start buying the cryptocurrency at levels around $40 and target the $53 zone. Stop losses would be placed below $39.

EOS

Since the 24 February slide, which took place across the board in the cryptocurrency class, EOS has been consolidating in a range between $3.3160 and $3.6540. A breakout at the lower boundary took place earlier today, as can be clearly spotted on the chart. This in turn sets EOS for an extension of the downtrend toward the $2.9850 support, at first. Potential break beyond this level will open the way for a more substantial move to $2.1550.

We are currently shorting EOS, targeting the psychological $3.00, where we will book profits and see how the market would react upon touching the zone.