Dear Monfex Traders!
Here is an advanced technical analysis for Bitcoin and Ethereum based on chart patterns and technical indicators.
Enjoy reading this analysis, and you’ll get a professionally structured, reasonable basis for making trading decisions over the next week!
Technical Analysis for Bitcoin (BTC/USD)
Overview for the last week (03/11-03/17)
During the past week Bitcoin has been trading within a narrow range from $3,900 to $4,000 with relatively small volatility. From Monday through Friday, the price has been consolidating within an ascending triangle (chart pattern), showing a modest price appreciation every day. On Saturday, the price moved up above the $4,000 resistance, thus making a new local high, and confirming that BTC/USD is in an upward trend. Since the $4,000 level was a significant resistance, the breakthrough above it also was significant and volatile, and caused BTC/USD to appreciate by 4.2% in a day.
Overall, the end of week has clearly shown that BTC/USD remains in an upward trend and a bullish sentiment on the market prevails.
Analysis for the upcoming week (03/18-03/24)
As of March 18, 2019, the medium-term trend for BTC/USD is upward and there are no signs of a possible reversal. We expect that the price will continue to increase gradually within the bounds of an ascending trend channel, as depicted on the chart bellow.
An ascending trend channel is being formed on a daily timeframe and is already encompassing 1.5 months. The trendlines of this channel slope in an upward direction, within which the price is making higher highs and higher lows. This dynamic represents a strong continuation chart pattern.
The price is expected to continue to appreciate over the upcoming week targeting the next resistance levels at $4,250 and $4,500. Thus, we believe that traders should be exposed more towards long positions (buy orders), rather than short ones.
The following additional forecasting information has been gleaned from the technical analysis of BTC/USD:
- An ascending triangle - a psychologically strong pattern - was broken and the price broke through the upper resistance forming the triangle at $4,000. We expect this action to give new momentum to BTC/USD over the upcoming week and cause a new rally to $4,500.
- An ascending trend channel is being formed on a daily timeframe. It represents a strong continuation chart pattern and means that the continuation of an upward trend is more likely.
- Both quick (10-days) and slow (30-days) Exponential Moving Averages are increasing. EMA is a primary trend indicator. The fact that both EMAs (with short and long periods) are growing, and the BTC price is moving above the quick EMA, is positive for BTC/USD.
- Stochastic oscillator (5,3,3), plotted on a daily timeframe, has approached an overbought range. This means that a small retracement downwards is possible, after which the prevailing medium-term trend is going to continue upwards.
A verity of technical indicators and chart patterns, mentioned above, confirm our previous forecast and indicate that the BTC/USD is expected to gain momentum over the upcoming week and increase to new highs at $4,250-$4,500.
Technical Analysis for Ethereum (ETH/USD)
Overview for the last week (03/11-03/17)
During the past week Ethereum has been trading within a narrow range from $133 to $137 with relatively small volatility. Similar to Bitcoin, the price has continued to consolidate within an ascending triangle (chart pattern), showing a modest price appreciation every day. On Saturday, the price spiked up above a local $144 resistance by 9.5% and set a new local high at $147.5. This move essentially confirmed that ETH/USD is in an upward medium-term trend.
The end of week has shown that ETH/USD remains in an upward trend and a bullish sentiment on this cryptocurrency pair prevails.
Analysis for the upcoming week (03/18-03/24)
As of March 18, 2019, the medium-term trend for ETH/USD is upward and there are no signs of a possible reversal. The overall market sentiment for ETH/USD is somewhat similar to the one for BTC/USD.
The primary evidence of a continuing uptrend comes from an upward trend channel on a daily chart. The trendlines of this channel slope in an upward direction, within which the Ethereum price is making higher highs and higher lows. This is a continuation chart pattern.
In addition, there is an ascending triangle, as shown on the chart. The trendline connecting the high prices is horizontal at $144, and the trendline connecting the low prices forms an uptrend. On Saturday the price has gone through and above the $144 resistance, and we believe this will give new momentum to ETH/USD over the week and will drive the price higher to the next resistance at $165.
Also, there are a series of confirmatory signals from technical indicators. On a daily timeframe, the Stochastic oscillator (5,3,3) is growing, and the %K line is moving above the %D line. This confirms an upward trend.
A verity of technical indicators and chart patterns, mentioned above, confirm our previous forecast and indicate that the ETH/USD is expected to gain momentum over the upcoming week and increase to its next target at $165.
We hope this analysis was useful to you.
If you have any feedback or suggestions, please contact us at [email protected].
To your trading success,
Research Team at Monfex
Disclaimer
This report does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. Monfex accepts no responsibility for any consequences resulting from the use of this material. No representation or warranty is given as to the accuracy, timeliness, or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. This research and analysis does not involve or apply to any specific investment objectives, financial situation, and needs of a specific person who may receive it.
This report is for information purposes only and should not be considered a solicitation to buy or sell any cryptocurrency or cryptocurrency product. It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Redistribution is prohibited without written permission. To license this report, please contact [email protected].
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