12 February 2019

Technical Analysis Tuesday 12. February 2019

Yara Ainsworth

Yara Ainsworth

Head of Marketing and Communications at Crypto Finance AG

About the author

It is TA Tuesday again. Let’s dive right into the charts.

BTC / USD Daily Chart

BTC$ daily chart 

On Friday we saw a spike from the middle of the accumulation zone right to the upper band of it. Additionally the upper band is also nicely converging with the base line (blue) of the Ichimoku cloud. We stayed at around 3600 for a while, but now we are drifting lower.

There was a bit too much excitement for my taste after that 300 USD rally. When looking at the daily chart we have not taken out any significant levels. However, we did not reach any new lows so far, which is positive. Neither did we manage to make any new highs. From a daily chart point of view, we need to trade above the 4250 level. This is just below the minor resistance zone. If we break through that resistance to the upside that would be a clear change in the structure and I will begin to be excited.

For the overall sentiment we will also watch the Ichimoku cloud. If the prices drift further sideways the cloud will act like pressure to the downside. The lower band of the cloud (green) worked especially well as a first resistance level to break and indicate a meaningful up move.

ETH / USD Daily Chart

ETH$ daily chart

A very similar picture to BTC$. After the lows just below 88 USD, we managed to spike higher and stopped just below the resistance zone. Which nicely converged with the Ichimoku cloud.

After Friday’s rally, we also just managed to trade up to the base line (blue) of the Ichimoku cloud and since then we have been drifting lower. What is different here to BTC$ is that ETH$ is currently trading in a high volume price range (yellow and blue bars on the right hand side). There is some serious volume changing hands down here compared to the summer months or even the sell off in November.

Zooming back to the bigger picture we can say as well that we have not made new lows, which is positive but we were also not able to make new highs. 160 USD is the magic level to be taken out, and if you want proper confirmation, the price needs to push into the resistance zone.

LTC / USD Daily Chart

LTC$ daily chart

Our rally forerunner. It performed an impressive rally with high volume out of the accumulation zone, and it just stopped shy of the lower band of the resistance zone.

The structure has turned bullish. LTC$ managed to make new highs when it rallied on Friday (the previous high was 41 USD). Now, it will be crucial for LTC$ to sustain the positive momentum and finally break back into the resistance zone.

Any long positions should have their stop just below 28.50 USD.

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