This week is an extremely good week for cryptocurrencies as Bitcoin rallied towards the $4000 mark.
Apart from that, we had public support and feedback from Tesla CEO Elon Musk and Billionaire Investor Tim Draper.
Below is the Technical Analysis for Bitcoin, Ethereum, EOS, LTC, ADA and XRP.
Bitcoin (BTC) closed above the downtrend line on Feb. 18, triggering our buy recommendation provided in the previous analysis. We had suggested buying only 30 percent of the desired allocation to minimize our risks. The remaining amount can be added when the leading cryptocurrency scales above $4,255.
If the recovery continues, a rally to $4,255 will be likely. Above this level, the BTC/USD pair will complete a double bottom pattern which has a target objective of $5,273.91.
Conversely, if the pair turns down from the current levels, it will find support at the downtrend line, and below it at the moving averages. A breakdown of these support levels will indicate weakness and can plunge the virtual currency towards the low. The downtrend will resume below $3,236.09.
Ethereum (ETH) is facing profit booking close to the psychological resistance of $150. If the bulls scale this level, a rally to $167.32 will ensue. Traders can continue to hold half of their long position with a tight stop, and keep the stop on the rest at $125.
The moving averages are on the verge of a bullish crossover, and the RSI is in the overbought territory, which is a positive sign.
If the ETH/USD pair doesn’t move up within the next couple of days, a retest of the breakout level of $134.5 will be on the cards. A bounce, following a successful retest of the breakout level, would show strength and increases the probability of a rise to $167.32. However, if the bears sink the pair below $134.5, it can drop to the moving averages.
Although Ripple (XRP) spiked above $0.33108, it could not close (UTC time frame) above this level. Hence, our suggested trade did not trigger.
Both of the moving averages are flat, and the RSI has entered into the positive territory. This shows that the trend is showing signs of a reversal. If the bulls sustain above $0.33108, a rally to $0.40 will be probable.
Hence, the traders can buy on a close (UTC time frame) above $0.33108 and keep a stop loss of $0.275. We shall raise the stop loss at the first available opportunity.
Our expectation of a trend reversal will be invalidated if the bears force the price to turn down from the current levels. If that happens, the XRP/USD pair is likely to remain range bound for a few more days.
EOS has met our first target objective of $3.8723, where it is facing selling. If the bulls don’t push the price above this resistance quickly, it is likely to enter into a correction or consolidation for a few days. The traders can protect half of their longpositions with a tight stop, and trail the remaining with the stop loss at $2.9.
The 20-day EMA has turned up and the 50-day SMA is flat. The RSI has entered into the overbought zone, which shows that the buyers have the upper hand in the near term.
We expect the bulls to scale $3.8723 and carry the EOS/USD pair to the next target objective of $4.4930.
On the other hand, if the bears reverse direction from the current levels and sustain below $3.2081, it will signal weakness.
Litecoin (LTC) had a one-day pause at the resistance of $47.246, after which the bulls have resumed the recovery. The first level to watch on the upside is $56.910. If this level is crossed, the next target will be $60, and above it $70. The traders should trail 50 percent of the positions closely, so as to lock in the paper profits when the upward move stalls.
As the LTC/USD pair has broken out of the critical resistance after a long time, remaining longpositions can be held with a slightly deeper stop loss at $40. We want to give some wiggle room to the pair to move up because the trend is changing.
Read full article here: CoinTelegraph.com