Analysis of cryptocurrency pairs BTC/USD, ETH/USD, XRP/USD as of 02/09/2018

Today we continue to analyze our previous forecast and try to determine the objective reasons for yesterday's consolidation.

Yesterday, the three main cryptocurrency pairs observed price consolidation above the upper limit of the descending purple corridor. Please note that trading took place without the participation of large orders, on small volumes.

BTC/USD

Bitcoin, yesterday pushed through the upper border of the corridor and tried to test the moving average EMA 55, but at this point the price was only able to establish the daily high is at 8644.36 USD. The possibility of price consolidation above the upper limit of this corridor was facilitated by small volumes of transactions and a neutral news background on fundamental events. At the hearings in the US Senate, which took place on February 6, the main message of the speeches of the heads of the Securities Commission (SEC) and Commodity Futures Commission (CFTC) was the recognition of the need for reasonable government regulation of relations in the cryptocurrency sector, which would take into account the interests of all participants in such relations. Constructive reports created an optimistic mood, compared to the earlier negative background of news events.    

However, let me remind you that confirmation of a reversal and change in the downward trend is the price consolidating above the EMA 55 level. As we see, this has not happened yet. Most likely, today the price will again return within the purple corridor and continue the downward trend to the lower border of this corridor.

ETH/USD

Ethereum, on February 8, was also able to gain a foothold above the upper border of the downward corridor and the level acted as support 23.6% fibonacci (786.00 USD), but the price of ether was not even able to test the moving average EMA 55. Therefore, it is most likely that today the price chart will return to the corridor range and continue the downward trend.

XRP/USD

Ripple yesterday moved confidently sideways, in a rather narrow range, and managed to “crawl out” of the downward corridor zone. However, given the general trend that is now being set by Bitcoin, we can assume that today a decline in Ripple is also expected, but it should be noted that it will occur with a much smaller amplitude.    

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