Welcome to this first post of daily market analysis. These posts will aim to indicate to you but also to teach you how the market behaved during the day using technical analysis and other theoretical techniques. Be careful all the same, all the market studies are completely theoretical taking speculation more you will not see any advice of purchase or sale.
For this first post, we will study six cryptocurrency case by case using the corresponding graph. The main tool used for these studies is TradingView. All of the cryptos studied will be : Bitcoin, ChainLink, Etheureum, Litecoin, Ripple and Tezos to begin. Others will be added in the future by me but also by your requests. Before finishing, the pairs studied will be BTC/USD and ALT/USD (Compared to dollard). Now let's start !
As we can see, Bitcoin ($BTC) continues its dump breaking at the same time the horizontal support line of $9000. The market still seems to be very bearish and with this break our new support line is now at $8000 also adding a break of the vertical downtrend support line.
We can then expect a pullback before a possible relapse towards the support line. At the same time our previous line of support becomes our new line of resistance. Now the price seems to be in a zone between $9000 and $8000 having a potential recharging area around $8500 and $8000.
The price of Bitcoin ($BTC) has dropped by -5.70%.
The closing of the daily candle gives us a lot of information. First we have a new resistance line at $3.85 and a new support line at $3.31. This new support right is not trivial indeed it is a price just above the recharging area. The market after having tested this line, seems to try to also make a pullback until the resistance at $3.85 before going back down and can perhaps pass in zone of reloading. As a reminder, the potential recharging area for $LINK is between $3.3 and $3. Finally, the volume has increased by pressing the same rebound for a pullback.
The price of ChainLink ($LINK) has increased by +2.13%.
First big red candle for Ethereum since the dump, Etheureum seems to have started off well for its dump after falling late other coins. The support at 250 has been broken and a new one seems to have formed at $220. It is a candle that does good for those they want to buy, Ethereum finally seems to want to return to its expected reload area between $200 and $180 However, $220 will not remain as a new support but as a new resistance. Indeed the "wick" of the candle indicates a strong will to go below and to get this price of $200. In addition, the volume traded supports this idea of dump and this will within the bears to want to have this recharging area. Will see in the following days.
The price of Etheureum ($ETH) has dropped by -9.22%.
Litecoin seems to have accelerated its dump offering a very large red candle. With this breakout, $250 becomes our new resistance. Litecoin continues to always seem to be down trending in an attempt to have this reload area around $50. We always have a large volume that supports this idea of wanting to have this recharging area.
The price of Litecoin ($LTC) has dropped by -14.72%.
XRP when it also continues its dump. With a break of the support line at $0.24. Which brings us into its first recharging zone which is between $0.24 and $0.21. However, we can perhaps have a second recharging zone between $0.21 and $0.18, but nothing sure. With this entry into the area, many people will begin to take positions.
However, if we take a look at the four hours charts (H4). We can potentially see a pullback attempt at this new resistance line of $0.24 before a further decline to go maybe on the support line at $0.21. It would then be preferable to wait for confirmations or structures to form before taking a position.
The price of Ripple ($XRP) has dropped by -9.10%.
Tezos seems to behave like ChainLink despite a less significant and rapid descent. In this daily closing we can see that the resistance line and the support line have been tested. We therefore find ourselves in a conflict zone between $2.50 and $3.0.
However, we still have a large presence of bulls with a will to pullback and break this resistance at $3.0. However, the support line has been tested many times indicating perhaps a change in trend, a possible entry into range or a transition to up-trend indeed with the intersection of the MACD curves where we could think of a desire to change the trend but nothing sure yet, maybe a "bear trap" ? A lot of uncertainty around this XTZ. To be continued in the coming hours and days.
The price of Tezos ($XTZ) has dropped by -2,06%.
State of the market
The market continues its general decline while still being bearish. The first cryptos have reached their reloading zone, however, we must expect pullbacks before possible relapses. Bitcoin still leads the way when Ethereum as it really started its dump. Other cryptos such as $LINK and $XTZ, seem to want to pullback before their potential entry into the recharging zone, however, there is a lot of uncertainty around $XTZ which still has a large presence of bulls possibly indicating a bear trap. We should still expect a bearish market in the coming days.
It was the first Daily analysis of the market, If you have questions, advice or requests to add new cryptos, let me know in the comments. I tell you tomorrow for a new Daily analysis.
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