Crypto Frontline

BTCUSD Coinbase

After reaching the key support area we’ve mentioned in our last weekly crypto analysis, Bitcoin bounced higher, but it turns out to be just a short-term market reaction. During the past 20 hours, selling had resumed strongly and now it’s very likely we’ll see the price breaching back inside the key area.

We should carefully watch how the price will react around the March 1^st low, A strong break below it will expose the $8,200 area. $7,800 stands below that and it will mean more than 50% of this year’s gains will be wiped out. It seems like the global risk sentiment is not helping Bitcoin at low. With a low-risk appetite, investors are not interested in volatile assets like cryptocurrencies.

The less-likely scenario at the present time is if we get a strong bounce of the upside. A break above the current monthly highs will expose the 4h chart 200 MA and the key $9,500 area. Given the price action structure, sellers are the ones in control right now and it will take a major shift in risk sentiment to turn things on the other way around.

ETHUSD Kraken

Things don’t look too good for Ether either. The price had retested a broken short-term range and thus far the reaction from the sell-side is very impulsive. We’ve highlighted an impulsive engulfing candle that could signal a log of trouble ahead. At the same time, the Ether price broke below the 4h chart 200 moving average, another sign sellers are heavily in control over the order flow.

Since the market treated as resistance a previous support area, that means a “change of hands” had happened and now we could expect to see more losses in the days ahead. We should watch how the price will react around $215. At this point, we believe Ether will move below $200 in the not-too-distant future, as more gains will be gradually wiped out of the market.

Only a breakout above the current monthly highs, followed by weak selling, will signal the risk sentiment had improved meaningfully. That does not seem likely to happen during the next week since risk sentiment should continue to be very bad. Shorting the market is still the safest play right now.

BNBUSD Binance

The first two months of the year had been very positive for Binance Coin since cryptocurrencies were on their way and the inflows favored one of the most popular cryptocurrencies. However, since things took a turn on the downside, we can easily notice that the BNB price had been impacted meaningfully.

We had talked in the past about an interesting pennant and as expected, the price bounced back on the upside, exceeding our expectations. However, the bullish momentum faded and now the price threatens to break back inside the structure.

Based on the current market conditions, we believe BNB is poised to retest its 2020 lows, located around $12 area, in the not-too-distant future. It might take more than a few weeks, but at this point, the market sentiment does not help BNB in any way.