People often ask us how we succeed to precisely determine the price movement levels. The answer is simple: our expertise and hands-on experience. So, let’s sum up the week’s results and consider the current market situation.
On the 1-hour chart we see that the price stopped exactly– like a Formula 1 pilot – below the $4,080 resistance level. You can easily see this level on the chart and in our previous review.
The EMA50 and EMA100 moving averages are under the price and looking up – a buy signal remains. The EMA50 and EMA100 moving averages will hold back the decline and act as local support at the $3,917 and $4,006 levels, respectively. The MACD indicator is at the border of the buy zone and looking up.
On the 4-hour timeframe, the buy signal also remains. The current resistance level of $4,080 prevents the ascending movement from testing a stronger level of $4,200, and then this year’s high of $4,218. The moving averages are under the price. The EMA50 is higher than the EMA100 – confirming the buy signal. Resistance levels are $4,080 and $4,200$ followed by $ 4,500. Support is at $3,880-$3,800 and $3,640. The MACD indicator is in the buy zone but tends to go down.
On the day timeframe, the price is between the EMA50 ($3,800) and EMA100 ($4,537) moving averages. As we wrote earlier, a strong buy signal will be formed when the EMA50 crosses the EMA50 from the bottom upwards, which is now at the $4,600 level. Therefore, it makes sense to continue to closely monitor the market now. The MACD indicator is in the buy zone and looks up. Also, in order to grow, the price has to overcome the current resistance at $4,080 as well as resistance at $4,200.
Support levels at $3,880-3,800 and $3,640 will contain the decline.
On the whole, the market situation is rather positive than negative. Yesterday, on February 21, Bitcoin price reached $4,000. It tries to rise to this year maximum and stays close to the resistance levels. Strong levels are defined.
Analysts attribute the return of positive trends to the crypto market to the good news coming from the global markets. The USA and China have continued negotiations all week long and the two countries expect to put an end to the trade war. At least, the shares of mainland China’s companies posted significant growth early this week. The stock markets in Japan, Australia, South Korea and Singapore also closed on a positive note. It is noteworthy that all the news about crypto markets has lately become positive.
The price is likely to test the support level at the weekend. We don’t recommend you to open trades between the levels, but trade from them – place pending buy orders near the support levels.
We wish all of you an enjoyable weekend and earnings!