ZB Market: BTC, ETH & DOT technical weekly analysis
Last week, risk-on sentiment hedged higher as the crypto market extended its rally to all-time high market capitalization in the course of last week trading session.
1.767 trillion worth of US dollar for the first time due to crypto asset demand by global financial institutions and retail traders.
Investor’s risk appetite grew rapidly as MicroStrategy made another round of purchase of Bitcoin.
The purchase of DOT by Goldman Sachs, JP Morgan, and UBS suggests that institutional appetite for cryptocurrencies is growing and is not limited to Bitcoin and Ethereum (ETH) alone but other token that have potentials are been looked inward for annual returns for investors.
XRP Vice President James Wallis over the week said that “ripple is set to Build the Core Ledger that Will Power Central Bank Digital Currencies despite the SEC lawsuit against the company”. This calmed the selling pressure of dd.
Bitcoin hit a fresh yearly highs and also Altcoins soared higher from their recent highs. Below is the heatmap.
BTC extended it rally by 23.69% after breaking out of a consolidation zone of a range bound of $48,615.37 and $44,639.91.
Last week, Bitcoin opened the trading session at $48,819.24 with a bearish pin bar which resulted to a slight dip to a support of $46,372.80.
On 16th February, volume rolled in the BTC/USDT pair as lots of retails traders accumulated the underlying asset dip. BTC price spiked to a high of $50,623.31 with a bullish flap candle from a daily time frame perspective.
BTC rallied hard to new record all-time high of $58,299.18 as the bull pressure intensified during the week.
The Bollinger Bands continued to diverge to indicate the high volatility level in the bitcoin’s price action. The MACD indicator saw its signal line go past the MACD line as it noted a bearish crossover in the weeks ahead to make a major correction of the rally.
If the volatility drop at the beginning of the week ahead we could have slight dip to a low of $47,115.26 to hit 9 EMA as a support for a healthy rally. But if the volume got increased due to fundamental impact news, BTC could rally to 60k.
ETH rally to the anticipated psychological level of 2k for the first time as we mentioned in our previous analysis.
ETH rallied by 14.74% after the bulls defended the $1772.72 broken resistance and turned it to a support. At the beginning of the week, ETH bulls and bears were indecisive for distinct direction of price.
The bears were completely weak on 17th February. The bulls took advantage of it, which caused ETH price to ride to the north to hit a record high of $2036.38. ETH price was suddenly pulled back to a low of $1813.45 as traders booked for profit.
RSI is 92mark and crawled on the overbought territory, this implied that there are potential sell-off in the week ahead if the RSI downtick from the overbought territory since the bulls are indecisive at the closed of the weekly trading session.
The MACD is above the signal line while the histogram is on the increased. ETH will be phased with a recent resistance of $1954.63 and extend its rally. This will need lots of commitment from the bulls to stay on the 2k price level.
DOT rallied by 98.31% after it printed a hammer at the beginning of the weekly trading session.
DOT price opened the trading session at $26.6143 and rode on a wave of a bullish momentum to the upside to a record high of $42.2665 due to a support from a broader crypto market.
DOT price printed a market structure of higher highs, although it got pulled back the 2.61% Fibonacci retracement level.
If the daily candle closed bearish at the beginning of the week, we could see some level of sell-off to a low of $30.4143. The bulls will need to defend this price level if this scenario plays out.
But on the contrary, if more buy pressures increased at the beginning of the week, we could see more volatility that will result to DOT price to further extend the rally to a new all-time high.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank.
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