Positive signs for cryptocurrencies
Positive signs for cryptocurrencies
Trading

Positive signs for cryptocurrencies

By Federico Izzi - 2 Mar 2020

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Today, unlike the weekend, sees a marked prevalence of positive signs. Over 85% of cryptocurrencies have green signs. Among the major capitalized it is necessary to reach the 16th position occupied by Huobi (HT) to find the first negative sign: -1.5%. The rest are definitely above par with increases over 3% like Bitcoin (BTC) and Ethereum (ETH). 

coin360 20200302
Source: COIN360.com

Among the top 40, the best today is Bitcoin Satoshi Vision (BSV) which continues to be characterized by the strong daily increases of over 6%, followed by the other Bitcoin fork, Bitcoin Cash (BCH) with +4.5%, a rebound that comes after testing the 200 day moving average. Cosmos (ATOM) stands out with +5%. Tezos (XTZ) and Chainlink (LINK) are still in 10th and 11th position, protagonists of countertrend days last week. Today they rise by 2.5% and 4% respectively.

Prices continue to float on supports already touched at the end of last week. During the weekend the market was characterized by low volatility with prices trying to build a foundation threshold from which to start again. 

Saturday’s trading day was poorly animated and characterized by low volumes, less than half of the daily average traded in the last 15 days. On Sunday, trading volumes jumped twofold, a trend that continues today with trades at 120 billion dollars, +20% from Sunday’s levels and +50% from Saturday.

Taking as a reference the prices of last Monday, only one green sign emerges on a weekly basis among the first 40 cryptocurrencies, that of Chainlink, which from the levels of February 24th gains 3% thanks to today’s performance. All the others are in strong loss, 90% with double-digit declines, except Lisk (LSK) -2%, while Bitcoin, Crypto.com (CRO), Qtum (QTUM) and Bitcoin Gold (BTG) lose about 8-9%. All others lose more than 10%.

A descent that aligns with that of the traditional financial markets, which since last week are falling with historic declines. This is due not so much to the repercussions of the Coronavirus but to a reversal of uncertainties that are also affecting the cryptocurrency sector, which apparently seemed devoid of social and health aspects, instead they are destabilizing even the digital sector, beyond the balances that regulate traditional finance and trade. 

In such a delicate phase, the reallocation of portfolios and investments by institutions also sees the performance of cryptocurrencies decline. A further signal comes from the low trading volumes recorded last week on CME and Bakkt, which have seen volumes fall. This is a signal that is reflected in cryptocurrencies and bitcoin and could give a justification for the recent declines. It could be a transitory movement linked to international uncertainties at a socio-sanitary and socio-political level, but not directly economic.

The market cap remains above 250 billion dollars, the dominance of Bitcoin has remained unchanged since last Friday at around 65%. In clear contraction that of Ethereum, under 10%. Ripple instead stable at 4.1%, same levels for the past three weeks.

BTC 20200302
Bitcoin chart by Tradingview

Bitcoin (BTC)

Bitcoin tries to consolidate the $8,800, to the extent that over the weekend the swings were contained within $300 with $8,800 acting as the balance level. 

Bitcoin today is approaching $8,900 but it will be necessary for BTC to try to recover the $9,500 before it reaches a first bullish signal. The $8,500-8,400 threshold, revised on Sunday afternoon, confirms the level of dynamic resistance crucial to maintain the bullish trend.

ETH 20200302
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum’s recovery is sharper, rising 8% from yesterday afternoon’s lows to $230 at the moment. A bullish movement that continues today with a gain of 3.5% and that currently, in the medium-short period, does not mark a maximum higher than the lows recorded during the last week. 

It is necessary for Ethereum to recover the 235 or even the 240 dollars in the next few days in order to identify a first level of swing on the lows and to be able to go again to evaluate the recovery of the 255 dollars that has become medium-term resistance. 

A reversal of prices below the $215, which was the target level of the head and shoulders, would project Ethereum down to $190-200: so there’s plenty of room for a lack of real direct support. 

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".

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