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Bitcoin: BTC holds prices at support levels
Bitcoin: BTC holds prices at support levels
Trading

Bitcoin: BTC holds prices at support levels

By Federico Izzi - 24 Feb 2020

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Global tensions are rising again, with investors shifting attention from the stock market to safe-haven assets and in this context Bitcoin is holding prices at support levels. 

coin360 20200224
Source: COIN360.com

After closing last week with yet another bullish candle, this week starts with a prevalence of red signs. Among the top 100 cryptocurrencies per market cap, 80% is in negative territory, although it’s a bit of a misleading sign given what happened over the past weekend. 

Sunday was very eventful. Yesterday’s trading volumes returned to the average of the last few days after a drop in volumes equal to ⅓ of normal on Saturday, interrupting the long-lasting trend that has seen consistent high volumes that had not been recorded since the spring of 2019.

Despite moments of pause like the current one, 2020 confirms to be a very eventful year for cryptocurrencies, with major achievements for the whole sector and in particular for the major altcoins.

Bitcoin vs Gold

Bitcoin is no exception, with an increase of +30% since the beginning of the year. Bitcoin outperforms gold which, with today’s record, brings its prices close to $1,700 an ounce, levels not seen in seven years, since mid-January 2013. 

However, despite its excellent performance, gold has seen its prices gain only over 11% since the beginning of the year. This shows that Bitcoin, although it seems to be lagging behind the other altcoins, confirms itself as a safe haven in this current context and should not worry about the divergence that is being recorded in these hours with gold showing a bullish impulse, while BTC remains stable at the values of the last 24 hours. 

After all, this is a particular scenario for Bitcoin, which is facing a global emergency for the first time. The holding of important levels of support confirms that Bitcoin will be able to continue to stand out as a safe haven asset decidedly decorrelated from all other assets known so far. 

ALGO 20200224

Algorand (ALGO) is still among the best of the day and continues to register higher prices, to the point that ALGO has reached for a few minutes the 50 cents abandoned last August. Algorand continues to gain positions in the ranking. With this increase, since the beginning of the year, Algorand has recorded a +130% and is in 34th position with 280 million dollars of capitalization. Today the crypto gains 13%, confirming the trend that already characterized it in recent days. 

VeChain (VET) also rises with a +5.3%, but in this case, it is a reaction movement following a strong bearish trend that characterized VeChain last week, which means it is a recovery of part of the accumulated losses.

Chiliz (CHZ) follows at a distance, with a +3%, which benefits from recent partnerships in the sports sector.

Among the worst is Tezos (XTZ), which today loses 8% but this does not undermine the tenth position gained in recent weeks with over 2.2 billion capitalization.

The volumes remain strong and, despite the decline in prices, the market cap remains above $285 billion. Bitcoin’s dominance remains unchanged at around 63%, with Ethereum that continues to gain market share reaching 10.5%, a level not recorded since May 2019. XRP loses 2.5% of its value in 24 hours and this difficulty is reflected in the dominance that falls below 4.3%, a level that had recovered last week.

BTC 20200224
Bitcoin chart by Tradingview

Bitcoin (BTC) holds the support

Bitcoin tries to confirm that the medium-term support is holding between $9,500-9,600, levels tested during the last few hours. This confirmation of support would again push BTC’s prices above $10.00 in the coming days. 

In the event of a failure to hold this level, the next support to be monitored is $8,800. If this target is reached, the first warning will be triggered for a bullish trend that has remained intact for now.

ETH 20200224
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum closed the ninth consecutive week on the rise at $260. It is a performance that has never been recorded in the last 4 years. This highlights the healthy momentum of Ethereum which is currently taking a break. 

It is necessary to understand if this lateral trend around 260 dollars is a movement of consolidation aimed to return to attack the $285, a maximum level recorded in recent days, before heading for the attack of the psychological threshold of $300.

The only signal that would begin to jeopardize the current strong bullish trend of Ethereum, which from the lows of the beginning of the year has gained 120%, would become the break of 245 dollars. Hence Ethereum currently holds a support area where it can move during this consolidation phase. 

 

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. Since May 2017 he is officially a Bigbit technical analyst. 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".

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