Technical analysis

The crypto market is taking off, how to know when to take profit ?

Julien Moretto – 12 Feb 2020

The bullish acceleration is clear this week in the cryptocurrency market. The start of the year 2020 is one of the best in a long time. Bitcoin has gained a further 12% in seven days and has settled above the symbolic $10,000 level.

But the altcoins offer even more impressive gains, like Tezos (XTZ) with +71% or Lisk (LSK) with +59% in one week. However, some uptrends seem to go parabolic. If the bullish trend builds more gradually on Bitcoin, profit taking could be strategic this week on some Altcoins. Let’s see some key price levels.

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  • According to CoinGecko, market capitalization is exploding and is now close to $300 billion compared to $261 billion last week.
  • In this context, Bitcoin’s dominance is still losing ground: 62.7%, compared to 64.7% last week.
  • The two best performances of the week in the top 20 are Tezos (XTZ) with +71.3% and Lisk (LSK) with +58.8%.
  • Fed President Jerome Powell said that confidentiality is essential for the widespread adoption of cryptocurrencies. An announcement that is viewed positively by the market at the moment.

We invite you to discover our complete analysis in video (in French and dated from February 11):

Bitcoin (BTC)

Bitcoin-chart-1

Coinhouse’s Recommendation : 
Hold

  • Bitcoin uptrend appears to be more healthy than most Altcoins. We keep the same recommendation than last week, given the strong uptrend and the lack of reversal signals on the main indicators. The next area to watch for profit taking will be the €9,500 and €9,900 ($10,500 and $11,100).
  • The bullish reversal is confirmed on the mid-term. So profit taking should only be partial.
  • Concerning the Indicators: MACD momentum remains on a strong uptrend. We will watch for a RSI divergence in the daily timeframe to make our profit taking decision if the price settles above $10,500.
  • The weekly bullish trend shows no sign of running out of steam.

Ethereum (ETH)

Ethereum-chart-1

Coinhouse’s Recommendation : 
Profit Taking

  • The uptrend has accelerated sharply on Ethereum since February 5. The asset gained 33% this week, at €234 ($255) on February 12.
  • Last week, we said that buying Ethereum was still possible. A decision that paid off. Given the sudden acceleration of the bullish trend in recent days, we are changing our recommendation as we are probably approaching a strategic area for partial profit taking on Ethereum.
  • Even if reversal signals are still absent on key indicators such as RSI, the price range between €230 and €245 ($250 and $270) should be a difficult resistance to break. Partial profit-taking at the top of this zone will probably be strategic.

Litecoin (LTC)

Coinhouse’s Recommendation : 
Hold

  • Litecoin (LTC) is more correlated with Bitcoin: the asset gained 15.3% in seven days and is now trading at €71 ($79) on February 12.
  • Our buy signal, which had been monitored for weeks, was the upbreak of the pivot zone from €55 to €57 ($62 to $65).
  • Since then, the Litecoin price has appreciated by 24% and is now in contact with a resistance zone located at €70 ($78). Given the strength of the current uptrend, it is recommended not to take profits on Litecoin right away.
  • The price could indeed make an additional leg-up and reach the zone between €82 and €89 ($90 and $100). If the main indicators start to show divergence signals in this zone, then profit taking will be considered.

Top & flops of the Week (top 50 marketcap)


Tops

1- Tezos (XTZ) : +71,7%
2- OKB : +68,7%
3- Lisk (LSK): +61,6%


Flops

1- Icon (ICX) : -18,3%
2- IOTA : +5,3%
3- Ethereum Classic (ETC): +8,4%

market-recap-7d

Latest Crypto News

  • 100% anonymous transactions could happen quickly on Ethereum.
    The company Aztec has just launched a system of smart contracts based on zk (zero knowledge) technology. The first proposed asset will be the zkDai, but many others should follow. This goes against the demands of the authorities which are increasingly seeking to regulate these assets.

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.
For further information, please do not hesitate to contact our support department.

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