Crypto weekly analysis

At the time of writing, Bitcoin is today traded at around $18,500. Last week, we experienced an impressive retrace, wiping out more than 1 billion dollars in long orders, creating the second-biggest liquidation since March of this year.

 
We then started the weekend while CME closed at 17,000 and then opened today at 18,270, making what I acknowledge to be, the biggest gap ever seen.
 
In this article, we are going to review the cryptocurrency markets, not only Bitcoin this time, but also Ethereum and Ripple. We would love to see your feedbacks on this new format and add a new coin you will chose for the next market review!

Market Video Review

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Bitcoin (BTC) Review

Weekly Analysis

Bitcoin BTC Weekly Analysis
Bitcoin Weekly Chart Analysis

This chart is essential to any day trader or scalper. Zooming out every week or day before your trading session will help you to consider what the trend is on a larger scale and if your bias is relevant.

The obvious trend is bull here, and we started this second bull wave around October when we retested the old broken trendline and bounced over the Middle band of Bollinger.

What we can notice is the impressive amount of successive green candles. Even if the last weekly candle closed red, it shows an impressive wick to the downside, giving such strength to the Price Action. 

The RSI stands above 80 but doesn’t show any signs of weakness.

Hourly (H4) Analysis

BTC analysis H4
Bitcoin H4 Chart Analysis

The H4 chart shows a lot about the last bullrun. It was having the shape of a parabola, with 5 exact bases. The parabola seems to be broken, but is it bearish?

I tend to be unsure about it. In my opinion, we do not have the characteristics of a bearish scenario yet. Indeed, to be bearish, it would need to make a second Lower Low, below the last dip around $16,400.

We can see here that despite the break of the parabola, BTC doesn’t seem to have lost its fuel to go higher. The last level bears should protect is the $18,800 area, and we are not so far from it!

On another note, please take a look at the bearish divergence on the RSI during the parabola. 

 
They all seem to have failed. This is why trading Divergences can be risky if you do not identify the current market trend and strength.

Low TimeFrame Analysis (H1)

low time frame bitcoin analysis
Bitcoin H4 Chart Analysis

As I know you love trading on lower timeframes, this H1 chart looks interesting at first sight. First of all, you can notice the previous uptrend canal, close to a falling wedge, that has been breaking down with high volume candles.

From this dump, I have been drawing the Fibonacci Retracement levels. As you know, the 0.618 level is supposed to be the most important.

It is fun to see that all the levels have been a point of resistance and consolidation for the retracement. This fact strengthens the weight of the Fibonacci levels in my analysis.

The level where 0.618 stands has been a major pivot during the past uptrend. I expected it to be more of a resistance, but it failed and broke, and the third bulls attempt to push higher. 

But there are reasons why I am not completely turning into a bull on this whole retrace:

  • The last supply zone at $18,600 is still a major resistance since bears have been breaking the past uptrend. If the bears hold this last resistance, BTC can retrace.
  • The volume during this retrace is insanely low. Even though everything happened during the weekend and thus, with low volume, it’s still, in my opinion, pushed with “nothing”.
  • Additionally, CME opened today with a huge gap down to $17,000.

So what do you think?

Let us know in our Telegram chat group 🤗

 

Ethereum (ETH) Review

Not as important as the King Bitcoin, ETH still has its words to say. It has been proven that some correlation exists between ETH and the overall altcoins market situation.

When ETH goes for a run, altcoins are likely to follow, and vice versa, so let’s see what ETH has to tell us!

ETH/BTC chart shows us if ETH will overperform BTC in the future. The ETH/USDT is not interesting here because our goal in a bull market, is to have at least better returns than what BTC could give us alone.

ETH has had nice reactions on horizontal supports, despite breaking down its falling wedge. I believe this latter is just a deviation since it managed to pull back above the trendline with a nice volume.

ETH is probably going to have good days until Q2 2021, and so will have the whole altcoin market.

Ripple (XRP) Review

Despite being one of the most hated cryptocurrency, XRP has been having a 250% growth in a few days.

Usually, this type of move up from XRP is often followed by a slow & bloody retrace, but this time seems different. Why?

Moving on to the hourly chart analysis, we can see that XRP is already building strong support areas. Indeed, the $0.45 area is proved to be an S/R flip. Then, despite the BTC retrace, XRP managed to flip back the $0.57 area and turn it into a support.

We can also notice a trendline that has been broken recently and could lead XRP to a new move up.

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