Weekly Crypto Market Analysis with Geco.one 07.02.2022
Bitcoin prices have increased in recent days by over $ 10,000, from less than $ 33,000 to over $ 43,000. Even though this growth exceeded 30%, from a technical point of view, there has still not been a change from a downward trend to an upward trend.
One of the basic principles of technical analysis indicates that a change from a downtrend to an upward trend occurs only when the market breaks a new, higher peak. Considering the above and that the last peak in the downward trend is around $ 45,000, only the increase in the BTC rate above this level could be interpreted as a trend change.
Nevertheless, another principle of technical analysis indicates that there is a potential for continued growth in the near future, just around the level mentioned above. However, it should be remembered that the potential for growth to technical resistance is one thing and that it is another thing to overcome it permanently.
We could also expect potential increases in the near future on the Ethereum quotations, the price of which has recently increased by over 44%. This increase led to the defeat of resistance of $ 3,000, which could naturally support a further appreciation towards $ 3,400.
It is only there that the next technical resistance, determined based on the last peak of the downward trend, is found. It also means that only the exit above $ 3,400 would mean a change from a downtrend to an upward trend.
We could also expect short-term increases in the BCH stock market. According to the assumptions of the polarity reversal principle, the rate of this cryptocurrency could return to the area of the recently defeated support (now resistance) of $ 360.
However, considering that the downward trend is still in force here, another supply reaction may appear around this level, which could initiate another wave of sales.
The current situation on the EOS quotes, which is moving towards $ 2.70, is also almost identical. However, the emergence of a supply response around this resistance would confirm that the increases observed for several days are only a form of another correction in a downward trend, after which the rate could return to the downward path.
Due to the high correlation of the vast cryptocurrency market, very similar technical systems can also be seen on the quotes of other projects, such as DOT, SOL or XLM.