HomeTradingProfit taking for crypto: the red sign prevails today

Profit taking for crypto: the red sign prevails today

For the second day in a row, the red sign prevails in the crypto market today, though this is not a worrying sign because they seem to be retracements due to profit taking as a result of the strong weekend rises.

coin360 20200211
Source: COIN360.com

Among the top 10 cryptocurrencies in terms of capitalization, half is negative starting with Bitcoin, Ethereum and Ripple, down 1.5%.

Among the best of the day, however, there are some double-digit rises, notably Waves (WAVES) which is the best of the top 100, up 25%, followed by Huobi Pool Token (HOT), directly linked to the Asian exchange which flies over 20%, although it is not the main token, Huobi Token (HT), up 6%. HOT enters the top 100 for the first time, reaching the 90th position with over $47 million of capitalization. The lowest step of the podium is occupied by Verge (XVG) with +12%. 

Worthy of note is also Basic Attention Token (BAT), a token linked to the Brave browser, which today rises 8%, reviewing the highs reached last mid-November in the 29 cents dollar area, levels that show how the reaction of the entire sector from the lows of mid-December allows BAT to recover ground, which is up 100% and sees the value double in just under 2 months.

Algorand (ALGO) also stands out with an increase of 7%, benefiting from the recent news.

On the opposite side, among the worst, there is Lisk (LISK) which, after the strong rises of the last few days, is now falling by 20%, while Icon (ICX) and Hedera Hashgraph (HBAR) lose 4% from yesterday morning’s levels. 

Capitalization remains high above 280 billion dollars, the highest levels of the last five months. Trading volumes fell 10% from yesterday’s levels but are above $110 billion, maintaining a strong performance, unlike the other previous trading peaks in mid-January and October, where volume peaks had lasted only a few days. By contrast, current volumes have been constant for a week.

Bitcoin is falling back in terms of dominance and is back to 63.5%. Ethereum strengthens at 8.7%, the highest level of the last 10 months. XRP fluctuates around 4.2%, not benefiting from the rise in prices in the last week that has seen it recover 29 cents, although now Ripple has fallen back to 27 cents in the last 48 hours.

BTC 20200211
Bitcoin chart by Tradingview

Bitcoin (BTC)

After revisiting again the $10,000, levels that it had abandoned last October, when they had been reached for a few hours, Bitcoin sees profit taking prevail, and so prices yesterday fluctuated around $9,800 and then fell back below this threshold, trying to find a new point where to form a support. 

Every downward movement sees as support the ex-resistance level at $9,500. Only a fall below this level would trigger a first wake-up call that would threaten the uptrend now present since the beginning of the year and which sees BTC gain 30% despite the decline of the last 24 hours.

ETH 2020021
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum appears to have better set the upward trend. The excellent weekly closing sees a long-lasting uptrend (7 weeks) that has not been recorded since 2017. Ethereum prices over the weekend were close to $230, the highest level since last August,

For Ethereum, just like for Bitcoin, it is now necessary to take advantage of this momentary setback in the $215 area to pick a support from which to start again. For Ethereum there is plenty of room before going to affect the bullish trend up to $200. Only descents below $185 would trigger a wake-up call that would threaten the current bullish trend started in the early hours of 2020.


Federico Izzi
Federico Izzi
Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".