Technical Views on Cryptocurrencies
11 February 2019
Exhibit 1: Daily Chart of Bitcoin
Bitcoin (CMP: $3695)
We saw a dead-cat bounce last week in Bitcoin which made a new 3 week high but in spite of that the lower-top formation in higher timeframes are being maintained. Bitcoin in fact is moving in a downward sloping channel as depicted in Exhibit 1 & has just hit the higher end of the range. Keeping in view the primary & intermediate downtrend of this premier crypto-currency, as shown by the downward sloping 100 DMA in Exhibit 1, we are inclined to believe that the lower end of the channel ($3400) could be a potential target for Bitcoin in coming weeks.
Exhibit 2: Daily Chart of EOS
EOS (CMP: $2.79)
The daily chart of EOS is akin to that of Bitcoin & we can clearly see the multiple tops at $2.80/85 regions in the 2nd week of January, which is shown in Exhibit 2 above. This is the resistance zone for EOS and if it manages to go past this resistance, it is expected to bring lot of demand for this battered crypto. On the other hand, the floor for EOS is seen at $2.25 regions. One should opt for buy-on-weakness & sell-on-rise in EOS as long as it stays within this range.
Exhibit 3: Daily Chart of Ripple with Bollinger Band
Ripple (CMP: $0.306)
Ripple is showing historically low volatility, as depicted by the width of Bollinger Band and we are expecting a burst in volatility in this Crypto anytime soon. This could, however happen in either side of the downward trend-line as shown in Exhibit 3. This implies that a break out above $0.32 or below the January low of $0.30 could be significant in short term.
