Bitcoin Outlook and Strategies Feb 2018

Bitcoin Trend Feb 2018

Bitcoin as well as the leasing cryptocurencies came under heavy pressure in the market as we expected in our cryptocurrencies strategies and signals for January 2018. Many investors are debating whether the intense selling marks the end of Bitcoin or is it a mere retracement.

From our experience in global markets this is not how bubbles burst. From a technical angle, the retracement was a reaction to the significant gains that took place in the market. It appears to be a healthy correction (despite its intensity) before some corrective gains may materialize.

It does not mean to say that BTC/USD will re-test the historic highs within a short period of time. It often requires time for such recoveries to materialize unless an extraordinary event takes place.

There were several news that fueled the selling we have seen in recent weeks, particularly the efforts to ban bitcoin credit cards. Such news often have a longer impact on the financial asset, which is one of the reasons we preferred remaining on hold until the market cools down.

BTCUSD Weekly Chart

Please click on the chart to enlarge:

Bitcoin Outlook and Strategies Feb 2018

BTCUSD Weekly Chart 07/02/18

BTCUSD Daily Chart

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Bitcoin Outlook and Strategies Feb 2018

BTCUSD Daily Chart 07/02/18

The weekly chart shows a bottom has been made, a full retracement to the prior gains. While the price can still re-test $5,780 we are not expecting to see another wave of fierce selling in Bitcoin. Using BTCUSD daily chart we marked the key resistance levels, which if the price is able to break above (via a daily close) Bitcoin may extend its gains to the next resistance level.

Ethereum Outlook Feb 2018

Ethereum is in a different position than Bitcoin. Although the selling that took place are considered as a healthy retracement, corrective gains in ETHUSD may be more complex.

Please click on the chart to enlarge:

Bitcoin Outlook and Strategies Feb 2018

ETHUSD Daily Chart 07/02/18

We are using ETHUSD daily chart. 855 is a fairly strong resistance level. It may require some effort for the price to break above. In an event we see a firm a break above 855, the price may extend its gains towards 960.00, which is the latter resistance.

Only a daily close above 960 may invalidate the mixed daily outlook and pave the way for stronger gains.

Ripple Coin Projections Feb 2018

Ripple Coin (XRP/USD) is not in a good position at the time of this writing. Although some may argue the leading cryptocurrencies are highly correlated we are not convinced Ripple Coin may benefit from any potential rallies in Bitcoin and Ethereum.

We are not listing the chart for XRPUSD as we require more technical data to provide an outlook for the cryptocurrency. The odds for further selling is higher but we would like to have a firmer technical confirmation. The best signals we are seeing from the charts is in Bitcoin and possibly Ethereum.

Last Updated on February 7, 2018