Commentary by Jackson Zeng, COO Caleb & Brown
Among the biggest movers this week were Bitcoin (BTC) and Litecoin (LTC), showing more positive signs than other weeks previous.
Bitcoin: USD $3,574 (14 Feb 2019 1:41pm)
This week we saw a 9% spike recovering the price from approximately $3350 up to $3700.
However, once again we’re approaching the 50 Day simple moving average (SMA) and exponential moving average (EMA) resistance.
In the past year, of the 12 instances the Bitcoin price approached the higher of the 50 Day SMA and EMA, we’ve seen a 75% rejection rate as the first significant candle following the convergence of price and SMA/EMA (see image below).
On the other indicators, we’re seeing a neutral reading of 50 on the Relative Strength Index. But while we’re seeing lower highs, we’re still in the bear trend and the chance of a lower low (under $3200) is very much present.
These are particularly positive signs for the strength at which cryptocurrency markets may rebound in the future.
Whether you are new to the market, or a seasoned trader, Caleb & Brown can help to realise your goals. Call us on +61 1800 849 149 or Contact Us to discuss further.
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