The last week of February saw a bloodbath in different asset classes, fearing that the coronavirus epidemic might turn into a pandemic. This led investors to abandon their positions in the stock markets, which wiped out about $ 3.8 trillion in value of US stocks. Gold, which served as a traditional refuge, was not spared. The yellow metal plunged about 4.6% on February 28, bringing the weekly loss to around 5% for the week.
This shows that investors did not differentiate between asset classes and sold everything in a state of panic. Bitcoin (BTC) and other cryptocurrencies were not spared the sale either, as investors could have made profits to cover their losses on the stock markets. Bitcoin fell about 14% in February, driving all of the crypto space down.
Weekly view of crypto market data. Source: Coin360
Just a few days ago, crypto traders were all excited when Bitcoin exceeded $ 10,000. However, in a few days, traders are now wondering if the bullish phase of Bitcoin is over and the crypto markets will again fall into a bearish phase. If it is necessary to measure market sentiment, it is worth sticking to the trend.
Let’s take a look at the top five performers in the past seven days to find out if the trend has gone down or if it’s just a small anomaly in a long bull market that still has legs to run.
LEO / USD
UNUS SED LEO (LEO) was the best performer of the last seven days with a marginal gain of more than 1%. Bitfinex suffered a distributed denial of service attack on February 28 for about an hour during which the trading activity was severely paralyzed.
Bitfinex CTO Paolo Ardoino said that although the attack was “very sophisticated”, the team had completely wiped it out in no time and such attacks would no longer work against Bitfinex.
LEO USD weekly chart. Source: Tradingview
The LEO / USD pair is trying to resume its lows at $ 0.80512 but the bearers aggressively defend the resistance of overheads at $ 1.025. However, the positive thing is that the bulls hold the ground and did not allow the pair to slide down.
We expect the bulls to try to push the price above $ 1.025 again. If successful, the pair will start a new uptrend of up to $ 1.36. We expect the bulls to hit a roadblock again at this level, but if crossed, the upward movement can reach $ 2.
Our bullish view will be invalidated if the pair drops from current levels and dips below life lows.
HT / USD
Huobi Token (HT) was the second best player in the past seven days. He almost managed to stay in the green. The Huobi group announced the public launch of the Huobi Chain testnet on February 29. The stock exchange also began trading margins on the Huobi token with 2x leverage.
Weekly chart HT USD. Source: Tradingview
The HT / USD pair had a very volatile week. Along with other cryptocurrencies, it also fell at the start of the week, but reversed direction from a low of $ 3.8890 on February 27. Subsequently, it jumped and surpassed the lead resistance at $ 5.3506, but the bulls could not maintain the higher levels.
We expect the bears to offer firm resistance in the resistance zone of $ 5.3506 to $ 6.10. However, if the bulls can push the price above this area, the ascending triangle pattern will end. This bullish configuration has a target target of $ 9.8212.
However, if the bulls fail to push the price above the overhead resistance zone, the pair could remain limited between $ 3.8 and $ 5.3506. The first sign of weakness will be a break below the EMA at 20 weeks and the trend will become negative on a break below the trend line of the ascending triangle.
LINK / USD
Although Chainlink (LINK) has decreased by around 7% in the past seven days, it has proven to be the third best performer. During the week, Ethereum Classic ad a collaboration with Chainlink to bring decentralized oracles to Ethereum Classic. Spotted ad that Chainlink had “completed an initial integration with a blockchain based on Substrate, marking a major step in the mission of bringing the market-leading network of decentralized oracles of Chainlink to the ecosystem of the Substrate and Polkadot chain.”
LINK USD daily chart. Source: Tradingview
The LINK / USD pair also succumbed to sales pressure during the week, which pushed its price towards the trend line. However, the positive thing is that the bulls bought close to the trend line, which resulted in a strong recovery. This shows that the feeling remains of buying on the dips.
We now expect the bulls to again try to push the price above the overhead resistance to $ 4.8671. If successful, the pair will resume the uptrend which can bring it up to $ 5.6934 and above up to $ 7.3101.
Contrary to our hypothesis, if the bulls fail to push LINK to new heights, the pair could remain limited for a few days. A break below the trend line will be the first sign that the uptrend is weakening. The trend will be reversed in favor of drops below $ 3.
HEDG / USD
Hedge Trade (HEDG) has lost around 13% in the past seven days, but was still the fourth best player among the major cryptocurrencies. This shows that the crypto markets are under pressure. Can HEDG organize a turnaround? Let’s analyze its graph.
HEDG USD daily chart. Source: Tradingview
After consolidating for four weeks between $ 2.37987231 and $ 2.98063936, the HEDG / USD pair succumbed to the reservation of profits. It can now be corrected at $ 2.05233281, which corresponds to the 38.2% Fibonacci retracement of the last rally.
If the pair bounces on this support, we expect the bulls to try to raise the price above $ 3 again, as this will signal a strong buy on the lows. After the price stays above $ 3, the next upward level to watch is $ 4.
However, if the bulls fail to defend the support at $ 2.05233281, the price can slide to $ 1.76557843 and below $ 1.47882405, which are Fibonacci retracement levels of 50% and 61.8 % of the last rally. It is better to wait until the price stops falling and report a reversal before launching long positions.
BTC / USD
The SEC rejected the Bitcoin Exchange Traded Fund (ETF) proposal by New York-based Wilshire Phoenix. The move dissented from Commissioner Hester, “crypto mom” Peirce, who said the Commission continues to change its standards to deny investors the opportunity to buy Bitcoin.
Several popular figures have planned solid short and long term goals for Bitcoin and have suggested that investors have at least some Bitcoin in their wallets.
However, not all support for Bitcoin was possible, as Berkshire Hathaway CEO and President Warren Buffet and the golden bug Peter Schiff continued their anti-Bitcoin views.
BTC USD daily chart. Source: Tradingview
The BTC / USD pair has formed a long-term symmetrical triangle. The price recently dropped by $ 10,500, which is just below the triangle’s resistance line. Support is $ 7,856.76 and below $ 6,435. If these two supports crack, the pair may fall on the support line of the symmetric triangle.
Conversely, if the pair changes direction from current levels or from $ 7,856.76, the bulls will again try to push the price above $ 10,500. We expect the bears to mount a solid defense between $ 10,500 and the triangle’s resistance line.
The EMA at 20 weeks flattens and the RSI is close to the midpoint, suggesting a few weeks of trading related to the range. However, if the bulls can push the price above the triangle, the pair should gain momentum. The target pattern for a triangle break is 29,882, but it may not be a straight dash to these levels.
We expect the uptrend to meet stiff resistance at $ 14,000 and above the highs for life. Until the BTC leaves the triangle, it could remain volatile. Our bullish view will be invalidated if the declines lower the price below the triangle’s support line.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and trading movement involves risks, you must do your own research when making the decision.
Market data is provided by the HitBTC exchange.