Bitcoin Bears Regroup For Last Attack But Will They Succeed?

  • Alex Morris
    📰 News

    Bears regroup after weekend for what could be the last attack. Bitcoin dominance up, Litecoin looking good with LitePay.


Bitcoin Bears Regroup For Last Attack But Will They Succeed?

Last week did not bring any relief to cryptocurrency investors and did not put an end to the confrontation of bears and bulls. The stream of negative news concerned with the Blockchain industry finally seems to have dried up, but the rapidly falling stock indices and the situation with the US bond market added fuel to the fire. As of Feb. 5, the total capitalization of the cryptocurrency market is $382 bln, which is only slightly higher than the minimum seen at the end of last week.

Cardano is leading the fall once again, with a decline of 17.5 percent, followed by Dash and IOTA, losing 16 percent each in the course of the day despite trying desperately to re-enter the top 10. With such tidings, all we can do is wish them the best of luck...

Litecoin is looking somewhat better than the rest of the market, with a drop of 10.7 percent. This asset is receiving media support with the announcement of the LitePay payment system. The platform promises a quick and easy integration of Litecoin payments for businesses, as well as support for exclusive debit cards that will work with Litecoin directly.

Of special interest is the increase of Bitcoin dominance to 35.5 percent. Apparently, investors are choosing the forefather of all cryptocurrency as a defensive asset in the hope that its recovery will be quick compared to other coins.

BTC/USD

Last week, we wrote that buyers will meet the $8,400-$8,500 Bitcoin price level with enthusiasm, which is what happened. The long lower shadows of Feb. 2 and Feb. 3 candlesticks indicate the transition of initiative into the hands of the bulls, as the $8,000 level is forming a new support. However, having replenished their strength over the weekend, the bears have decided to initiate a decisive (and possibly last) attack.

 

 

In order to begin the turnaround, it is often necessary to update the current minimums. The $7,700 zone can become that turning level. In the diagram on the right, we can see that historically the interval of  $7,000-$7,800 saw a significant trading volume with purchases greatly exceeding sales. In the cryptocurrency market, history is often repeated, so latecomers will gladly increase their positions in this range again. In the case of a negative scenario, the $6,000 level still looks like a strong support, formed by the long-term trend from July 2017 and the 0.786 Fibonacci retracement.

LTC/USD

During the previous day’s trading, Litecoin price was falling less than other assets aided by a positive news cycle. We expect that given a change in the global trend, this cryptocurrency will demonstrate good recovery rates. The first obstacle, in this case, will be the $175 level which coincides with the 0.618 Fibonacci retracement. In our opinion, Litecoin will clear this hurdle with ease. Further growth targets will be clarified as the global turnaround is confirmed.

 

 

In case of a negative development, reliable support will be found in the $110-$120 intervals, formed by the trend line from November 2017 and the 0.786 Fibonacci retracement. Investors who have not yet added Litecoin to their portfolios are advised to examine these figures and consider purchasing for the medium and long-term.

NEO/USD

NEO price almost halved since its maximum value seen on Jan. 15. Now is the time for investors to add this promising asset to their portfolios. The nearest support level is in the range of $95-$100, formed by the 0.618 Fibonacci retracement and the lower boundary of the rising channel from the middle of December. We are just now at the border of this range.

 

 

The next support level, which can be reached in case of further decline in Bitcoin price, is $80-$85. The 0.786 Fibonacci retracement shapes this level on one side and the mirror resistance level from Dec. 20 on the other. It is recommended for building long-term positions.

Cover image via u.today
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