Crypto Frontline

BTCUSD (Coinbase)

It was quite a volatile week for crypto and in line with our expectations, Bitcoin tumbled once $95k was breached on the downside. Selling stalled around $78k where an impulsive pullback has started. 

Enthusiasm surged when the US president announced several cryptos that could be included in a state-owned reserve. Apparently, someone knew about it beforehand since there was chatter about a trader buying $200 million worth of BTC and ETH with leverage. 

As Monday is on and traders get back from the weekend, the bullish sentiment seems to have eased. Very likely, the market is waiting for more clues on the composition of that crypto reserve as well as clear evidence it will eventually come to fruition.

For now, the price action movement is only based on hopes. Given $95k acted as resistance, we could see BTC pulling back to $90k. Below the 4h chart 200 SMA sellers might be incentivized to enter strongly. In that case, we see last week’s low and $73.8k as potential support areas. On the upside, breaking above the $95k + 200 SMA will open more room towards $100k. 

ETHUSD (Kraken)

After the break below of the ascending trend line we highlighted last week, Ether continued to tumble and found support at the Feb 3rd low, exactly where we mentioned a key support level. Once the news broke over the week, the price spiked higher, since ETH has been mentioned as well. 

But, we are now seeing a deep pullback to the 20 EMA, which doesn’t bode well for buyers. The price has to stay above the blue line and start a new push higher in order to suggest strong interest from bulls. 

If selling continues to extend lower, we expect support once again at $2,160 and $2,000. At the end of the week, we have the first crypto summit in the USA and that event has the potential to energize crypto speculators. If it does happen, ETH might start a new leg up that could extend towards the key $3,000 resistance area. 

ADAUSD (Binance)

Cardano surged 75% yesterday, benefiting from the fact that the company behind it is based in the United States. Volatility remains high, but we think the strong bullish push managed to tilt the advantage in favor of bulls. 

That’s why we expect 90 cents and 81 cents to act as strong support areas if there is some further pullback. Conditions are favorable for buying as long as ADA continues to trade above the 4h chart 200 SMA.

If that happens, a move upward should start and the first resistance zone to watch is $1.15 – $1.20. That’s where the weekend buying was capped, suggesting there are strong offers around those levels. 

Managing to break above that zone is what buyers should expect because in that scenario, we think ADA is poised for an extension towards $1.4. For now, we favor the upside, but it all depends on what will happen at the crypto summit later this week.