Market overview of leading cryptocurrency pairs for the current week (from 02/05/2018 to 02/11/2018)

In our weekly review we will pay attention to the market reversal and the change in bearish sentiment

BTC/USD

This week we can talk about the long-awaited change in the downward trend, which began on December 17, 2017 at almost 20,000.00 USD (according to the BitStamp exchange 19,666.00 USD) and ended on February 6, 2018, fixing a minimum of 5,920.72 USD. The total capitalization of the cryptocurrency as of December 17, 2017 was 600 billion US dollars and by the end of the bearish trend it had decreased by 323 billion to 277 billion dollars. 

To analyze the depth of the fall of the BTC/USD pair, Fibonacci levels were used, where the zero level corresponded to a maximum of 20 thousand, and the minimum at the psychological mark of 5,555.55 USD, which was recorded on November 12, 2017, was taken as the base, 100% level. It was assumed that as a result of the fall, the Bitcoin price would test 100% fibo (5,555.55 USD) and meet support at this level. However, the price decline stopped about $365 before the target bottom. In order to speak with complete confidence about a real reversal, in technical analysis, there are a number of signs that confirm the reversal. One of them is considered to be the price chart crossing the EMA55 line or the short moving average and the long moving average from bottom to top. This confirmation was received on the four-hour time frame. Receiving similar signals on larger time frames confirms the reliability of the reversal. Confirming a reversal is an important task for further analysis of price behavior. If the reversal is real, then the price will not fall below the fixed minimum in the near future. And if the price increase is a correctional wave, then the downtrend will soon continue and the price will update the previous minimum.

In addition to technical analysis, it is necessary to take into account the fundamental component, which plays a determining role in the predominance of Bullish or Bearish sentiment in the market. The dissemination of false information or the deliberate creation of fake news interferes with the determination of positive and negative sentiments. Sometimes the same news is interpreted differently. An example would be news about a falling stock market. Many media outlets have already managed to present the fall in stock index quotes as the beginning of a global, protracted recession in the world economy... But whether there will be a synchronous fall in the stock and cryptocurrency markets is still a big question.  

Judging by the trading volume in which BTC/USD grew, we can say that Whales were still outside the market. When we see trading in large volumes, then it will become clear where the major players in the crypto market want to move the price. If the price of Bitcoin drops to a level acceptable for the whales, then perhaps we will witness a flow of stock market capital into cryptocurrency. 

Thus, the coming week will be decisive in understanding further market dynamics. The driving force of the cryptocurrency market, of course, will be the Bitcoin rate. It is he who will pull all the altcoins from the cryptocurrency ecosystem with him.

ETH/USD

This week, Ethereum completely followed the dynamics of Bitcoin and simultaneously turned upward at a minimum of 565.00 USD. On February 10, the price of the ETH/USD pair reached a maximum of 913.00 USD. Today we are watching Ethereum decline to the support level of 23.6% fibo (786.00 USD), which, according to yesterday’s forecast, should slow down the fall. At the beginning of next week, we expect synchronous confirmation of the reversal and new, much-awaited green candles from Ethereum and Bitcoin.    

XRP/USD

On Saturday, Ripple recorded a maximum of 1.23 USD. On February 11, the price briefly consolidated near the one dollar per ripple mark and continued to descend to the 100% fib support level of 0.909 USD. If the general trend in the crypto market allows the price to “push off” from this support level, then the XRP/USD pair will reach new highs in the area of ​​1.404 USD as early as next week.