Crypto Frontline

Weekly Crypto Analysis February 22-28, 2021

Weekly Crypto Analysis February 22-28, 2021
February 21
14:09 2021

BTCUSD (Coinbase chart)

BTCUSD technical analysis
Source: TradingView

The last week of February is about to start and the Bitcoin rally sees no end in sight. The price managed to exceed our last week’s upside target and it is now poised for a continuation towards the key $60,000 area. Looking at the 1h chart, we can easily notice how buyers had been entering on small dips below the 20 EMA and as long as the structure won’t change, the upside will be intact.

Counter-trend players will need to wait patiently for a structural change before shorting the market. The price defies any logic and is pushed into a more overextended territory, which is why, in the short-term, the upside continues to be favored. The news related to Bitcoin ETFs seems to have lifted the market optimism once again.

Although on the 1h chart the RSI is under the 70 area, the situation is more concerning when looking at the weekly or especially the monthly chart, where the indicator continues to point to red flags. Even though the price might consolidate next week, this month will mark the largest increase for Bitcoin since its foundation.

ETHUSD (Kraken chart)

ETHUSD technical analysis
Source: TradingView

Ether had a similar performance with Bitcoin and continued to edge higher, reaching the $2,000 area for the first time in its history. However, short-term selling interest emerged around the area, and thus far, buyers had not been able to push the price to a new all-time high.

The price action structure is very clear and buying interest can be spotted on the 4h chart each time ETH drops below the 20 EMA. As long as that’s still valid, the upside remains intact. In case a breakout lower will occur, a corrective move towards $1,600 or even the 4h chart 200 SMA shouldn’t be ruled out.

It would be important to monitor how stock markets will perform next week, especially since weakness had been emerging on the back of higher interest rates. ETH and crypto, in general, had been correlated with stocks and sellers might be favored in the days ahead.

BCHUSDT (Bittrex chart)

BCHUSDT technical analysis
Source: TradingView

Bitcoin Cash had been in consolidation mode the past week, even though the broad market continued to edge higher. The price action structure had not been deteriorating, as we see the token consolidating above $630 a key role reversal level and support area.

If the trend will reach new 2021 highs in the days ahead, it could be an early indication for a continuation towards $880, an area where stronger sellers could emerge. At the same time, we should not exclude the fact that the past week’s weakness might be signaling more downside down the road.

Month-end flows might have a meaningful impact on Bitcoin Cash during the next several days, especially since the market saw a meteoric rise during February. In terms of the RSI, the indicators dropped below the overbought territory, signaling many buyers had taken a wait-and-see stance.

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