ZB Market Daily: BTC, DOT & LTC technical daily analysis
BTC
Yesterday, BTC price retested the heavy resistance the 7th times but got rejected as sellers stick around to create bearish pressure at $59670.35. During the trading session on 5th March, lots of indecision from the bulls to thrust BTC price above the heavy resistance at the close of the session can be seen on the 4-hour chart.
Yesterday, as the bulls lacked steam to break the heavy resistance $59670.35, the bears initiated a strong pressure in the early hours of the Asian session. BTC price fell to a low of $58559.30 and more short position was added by traders which led to further plunge of BTC price to an intraday low of $57254.01.
Technically, BTC is on a 19 days consolidation phase despite the bearish fake-out that was created on 25th March.
At press time, the EMA crosses and 20 period moving average acted as a dynamic resistance at the middle of the consolidation phase.
On the day ahead, key price level to watch out for probable price action will be a range of $56731.16 and $59931.77.
Hence from a bullish perspective, an inverted head and shoulder market pattern has been created both on the 4-hour and daily chart. This is a positive sign for probable rally in the next few session if the bulls thrust BTC price above the $59931.77 neckline. If this scenario plays out, BTC price will resume the uptrend.
But on the contrary, from a bearish perspective, if the bears break a support of $56731.16 during the London trading session, BTC price might dip to a low of $53594.22.
DOT
After 8 days of rally to the upside to print a new all-time high at $46.8256, DOT price created a double top market pattern. Technically, this was a bearish signal for retail traders.
More so, DOT price created an inside bar pattern at the early hours of the Asian session. These are point of confluence for probable bearish signal yesterday.
Traders liquidated their long position, as the volume dropped at a resistance of $46.1954. The bears broke the EMA crosses and further declined as the sell-off pressure increased.
The convergence of the Bollinger band indicates that the bearish momentum for Dot price got weak. The EMA crosses acted as a dynamic support.
From the 4-hour chart, DOT price consolidated with a range bound of $41.5477 and $46.1954. This is also a bullish flag. Hence, for the day ahead, if the bulls thrust DOT price above $46.1954 upper of the flag, DOT will extend the rally to print a new record all-time high.
But on the contrary, from a bearish perspective, if the bulls fail to sustain $41.5477 support, the bears will be forced to correct the recent rally to a low of $36.1121.
LTC
LTC price created a cup and handle market pattern that can be seen on the 4-hour chart. The handle pattern initiated on 5th April was accumulation phase. The accumulation lasted for 24 hours as LTC price consolidated. This setup was a bullish signal at yesterday trading session.
After the bulls successfully break the neckline of the cup and handle market pattern at $218.500, a support was formed where more buy pressure was added.
LTC rallied from the support to an intraday high of $245.273.
RSI uptick to the over-bought territory and is making attempt to point to the south. This could be probable correction in the day ahead as multiple rejection of the recent highs lasted for 8 hours.
If the bears break $229.903 support in the early hours of the Asian session, LTC price could flip lower to create a higher lows at $216.055 for a healthy uptrend market structure.
But on the contrary, from broader market support, if the first 4-hour candle closes bullish above the rejection wicks at 243.083, LTC will extend the rally a new all time high in the day ahead.
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.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.
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