Nice setup for $NEOUSD in February
Overall, the bearish case looks weak with a few divergences that had already happened in the past few weeks on the way down.
The support build-up sits at EMA-50 and EMA-200.
Buy orders should be placed around the $10 mark with tight stop losses around $9.5 for both targets.
The first target...
Bitcoin outlook for February
Bitcoin is in an interesting spot at the moment.
The EMA-200 was and the red supply line was broken on January the 14th with the tallest green candle since October the 25th.
This move was also accompanied by high volume which indicates strength.
The price has been retracting ever since, but what's interesting...
Whilst we're still in the crypto winter, the price of ETHUSD could drop as low as $40.
The green line shows the next major support which sits at around $42. At this moment in time, we are at the very bottom of the current support level. If this support breaks and the price drops below $80, the next stop is $40.
Point of Interest is the volume by price...
There's a cluster of resistance at $3,564:
Supply line (red line)
Fib line 23.6%
The price had already bounced off of the resistance and is headed downward.
The interesting part is the weak volume on which the price had been climbing for the past 3 candles. This indicates bullish divergence as the volume bars are way below average.
As Bitcoin is in free fall and trending in confined range, the price will bounce between $3,000 and $3,500.
If the daily candle closes below $3,000 at any point, the test of $1,850 (S2) is highly likely as there's literally nothing in between to stop to price from falling.
S2 is the major support established in July 2017 which was the start of the Bitcoin run...