ZB Market Daily: BTC, XLM & XMR technical daily analysis
Square purchased approximately 3,318BTC at an aggregate purchase price of $170 million, the firm made a speech on 23rd February, adding that “Combined with Square’s previous purchase of $50 million in bitcoin, this represents approximately five percent of Square’s total cash, cash equivalents and marketable securities as of December 31, 2020.”
Furthermore, Microstrategy took advantage of the crypto bleeding market on the Tuesday by making another round of huge purchase in the dip. In a tweet, Michael Saylor said that “Microstrategy has purchased an additional approximately 19452 Bitcoin for approximately $1.02 billion in cash at an average price of approximately $52765 per bitcoin. And as of the yesterday the firm 90531 bitcoin”.
This exciting fundamental news got crypto market relief from the bear pressure yesterday as many retails traders have more hope to strategically take more buy position to the upside.
Yesterday, it was a bullish start to the day in the early hours of the Asian session. BTC price bounced off from $45,293.98 support after a massive sell-off on 22nd February due to the impact of the news mentioned above.
The bulls lacked volume to break the 20 SMA and thrust above the horizontal resistance of $50,901 due to the heavy traffic that was created on 18th February.
Technically the bears are making an attempt to break the 9 EMA to pressure BTC price to retest the recent support $45,293.98 that was created on 23rd February.
RSI is mixed at 41mark as the direction of the trend is still on clear. The MACD Crosses are below the signal line. MACD histogram decreases in the negativity territory which means a trend reverse in the days ahead.
If the BTC price crash to $45,293.98 and the bulls fails to defend this price level, this will initiate a bear market in the days ahead to a low of 37k.
XLM price regained its Tuesday’s losses by 50% in yesterday trading session due to broader market total recovery.
XLM price revisited $0.4323 in the early hour of the Asian session but got multiple rejection as traders booked for profit.
The failure of the bulls to break above $0.4323 to resume the uptrend led to further decline of XLM price.
XLM price retested a pivot point at $0.4397. The bearish engulfing close of the 4-hour candle 20:00 UTC indicated a bearish signal. Traders short more position, which caused XLM to dip to an intraday low of $0.3911.
At press time, the bears are breaking the 9EMA in anticipation to dip XLM price.
The money flow index downtick to a low of 40.31 index, which means flow of cash into the crypto decreased.
In the day ahead XLM price could tank to support of $0.3405. The bulls will need a support from broader market to defend the areas of demand for the underlying asset from flipping lower.
But if the bulls fails to defend this price level, more dip will be expected in the days ahead due to the pressure from the bears.
XMR has been falling since it reached a high of $282.558 on 20th February.
On 23rd February, XMR price declined to a low of $172.332. However, XMR price has bounced from the support since the low was printed with long wick to the downside at $187.118.
Yesterday, it was strong bullish opening of the trading session for XMR. XMR price retested the $232.917 recent resistance that was created on 22nd February. XMR got rejected due to low volume to thrust price above $232.917.
However, the direction of the trend is bearish due to confluence signs from technical indicators.
THE RSI has crossed below the neutral territory and is poised to hit the over-sold region.
The MACD is still negative and is below the signal line. Although the histogram decreases a sign of reversal is near in the mid-term.
XMR price is poised to revisit the $188.945 support due to the break of the 9EMA in the days ahead.
If the bulls fail to defend the anticipated support, XMR could decline further.
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