Technical analysis

Bitcoin still strong, altcoins frenzy hitting the market

Julien Moretto – 5 Feb 2020

Consolidation is healthy on Bitcoin this week. The asset is stable, at +1.3%, and remain above the €8,400 ($9,200) zone on February 5th. This price action favors a new uptrend in the market, which could project the price into the €8800 to €9400 range ($9700 to $10,500).

The Altcoin market is doing even better. Very good performance by Tezos (XTZ), which has gained 30% over the last seven days and breaks its 2019 high of €1.70 ($1.90). Icon (ICX) even goes into a technical bubble pattern with more than 150% rise in one week. With 3 months to go before the halving, the market sentiment is reversing more and more in favor of buyers. Nevertheless, it is still important to identify the price zones that will trigger potential corrections. Here is our analysis.

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  • According to CoinGecko, the market capitalization continues to increase this week, at $261 billion compared to $256 billion last week.
  • Bitcoin’s dominance is regressing at 64.7%, down from 66.2% last week.
  • The two best performances of the week in the top 20 are Tezos (XTZ) with +30.3% and IOTA with +17.2%.
  • Stablecoin exchanges on the Ethereum blockchain have exceeded those of ethers. This shows that the demand for stable cryptographic assets is strong.

We invite you to discover our complete analysis through this video (february 4th) :

Bitcoin (BTC)

bitcoin chart

Coinhouse recommendation : 
Hold

  • Considering the nice consolidation going on in Bitcoin, we recommend to hold this week, following last week’s slight profit taking. Bitcoin is holding the €8,400 ($9,200) pivot zone well and is creating a little more of a long-term bullish recovery sentiment in the market.
  • The next zone to watch for profit taking is the one between 8800€ and 9400€ (9700$ and 10 500$). However, it will be necessary to remain attentive to the signals given by the indicators when approaching this zone and not to take profits automatically.
  • Le momentum MACD semble proche d’un retournement baissier en unité de temps journalière. Ce scénario pourrait offrir des zones intéressantes de rachat à 8000€ (8900$) et 7700€ (8600$). Mais le cours du Bitcoin peut s’emballer à la hausse rapidement, sans offrir de retracement. L’installation durable du RSI en zone de surachat dans l’unité de temps journalière sera un bon indicateur de cette psychologie de marché.
  • MACD Momentum appears to be close to a bearish reversal in a timeframe. This scenario could offer interesting buyback zones at €8000 ($8900) and €7700 ($8600). But Bitcoin’s price can go up quickly, without offering retracement. A good indicator of this market psychology will be the sustained installation of the RSI in the overbought zone in the timeframe.
  • The January monthly closing reinforces the probability that the corrective movement initiated since the end of June 2019 will be completed.

Ethereum (ETH)

Ethereum chart

Coinhouse Recommendation : 
Buy

  • Our buy signal finally arrived on Ethereum, when the price crossed the 165€ ($180) threshold on January 29th. Assets gained 9% this week, at €177 ($196) on February 5.
  • Even if buying now is already less interesting on Ethereum, we remain on a purchase recommendation. The Fibonacci extension levels of the previous bearish phase project a price that could rise to a range between €187 ($209) and €200 ($222). A level that will be conducive to initial profit taking, subject to signals of reversals on the main indicators.
  • If the correction occurs earlier than expected, which remains less likely, €158 ($175) to €165 ($180) remains an interesting buyback zone.

Tezos (XTZ)

Coinhouse Recommendation : 
Buy

  • Tezos (XTZ) remains impressive and breaks its major resistance of 1.70€ ($1.90) this week. The performance is noteworthy: +30.3% in seven days to now trade at €1.87 ($2.07) on February 5th.
  • In our last analysis on Tezos, we recommended to check the resistance of the €1.45 ($1.60) and to buy if it was broken up. This analysis is bearing fruit today.
  • The price action seems to be accelerating since the €1.70 ($1.90) break. The RSI has moved into the overbought zone on the timeframe and we have no short term reversal signals. Those who have not yet bought Tezos can therefore buy, even if the performance will be lower.
  • No rush to take a profit. We let the trend unfold. Fibonacci extensions give a range between €2.08 ($2.31) and €2.30 ($2.57) to consider possible profit taking, conditional on the signals of the indicators at that time.

Top & flops of the week (top 50 marketcap)


Tops

1- Icon (ICX) : +125%
2- Lisk (LSK) : +66%
3- Tezos (XTZ): +34%


Flops

1- Cosmos (ATOM): -8,5%
2- Bitcoin SV (BSV): -4,7%
3- Bitcoin Diamond (BCD) : -0,3%

Crypto latest news

  • The PSG is launching its own cryptocurrency. It will allow fans to vote on club decisions, and allow them to participate in events. The Socios app is already being used by Atletico Madrid and Juventus, among others.
  • Ethereum miners are bullish. They are accumulating native ETH assets and do not seem to want to part with them at these prices. It is estimated that they are accumulating 11% more ETH. From 1.54 million to 1.69 million ETH in one year.

Investors’ attention is drawn to the fact that the content of the articles does not constitute investment advice.
Investment in cryptocurrencies carries a risk of total capital loss.
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