Market Overview

Collective Capitulation On Valentine's day

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  • The word capitulation appears in different sources...something is being planned...
  • Volatility may increase towards the end of today.
  • BTC/USD may be the first to notice the coming shake.

According to Investopedia:

"Capitulation is when investors give up any previous gain on any security or market by selling their positions during periods of falls. ... A market correction or bear market often leads investors to capitulate or panic sell. The term derives from a military term that refers to surrender."

Have you sold your cryptos in recent weeks?

You haven't done so but are you tempted to do so several times a week?

You should know that this is the massive thinking among non-professionals, and some professionals, in recent months.

Just as euphoria pushes to buy at illogically high levels, fear pushes to sell at minimums with the firm intention of saving something from the salvageable. Humans are programmed to react in this way to emotionally extreme environments, all of us.

However, some have learned that if they can look at the situation from the other side of the story, they will find it easy to find someone who sells things to them at minimum prices and then repurchase them at maximum rates.

BTC/USD 240 Minute Chart

The BTC/USD pair is currently trading at the $3.566 price level, resting on a support level of price congestion at that price level. BTC/USD is under the influence of the EMA50 at $3.544 and the SMA200 at $3.527 and is very likely to fall to these levels. Even a drop to the next support level of $3,473 (SMA100) is within expectation.

Above the current price, the first target is at $3,600 (price congestion resistance), a resistance level from which it would be likely to attempt to breach the long term bearish channel's trendline ceiling by $3,650. The behavior of the BTC/USD pair can become explosive from the resistance level of $3,700 (price congestion resistance).

btc_usd_80-636857372335030962.png

The MACD on the 4-hour chart shows how the lines continue to cross downward but already very close to the middle line of the indicator where it is very likely to turn bullish again.

The DMI on the 4-hour chart shows how bulls and bears have followed opposite dynamics and are heading to a meeting point that will occur late today. This encounter between the two sides of the market will bring volatility to the market, with a high probability that in the case of Bitcoin, we will witness rapid, yet momentary falls.

ETH/USD 240 Minute Chart

ETH/USD is currently trading at the $122 price level, extending the bullish movement that began last Friday. The $120 support level has worked and building on its support Ethereum continues to move higher in the direction of the next resistance level of $131 (price congestion resistance). This price level would be ideal for consolidating the bullish break and waiting for the arrival and regrouping of the moving averages. This move could last a couple of weeks.

Below the current price, the first support level is at the previously mentioned price level of $120 (price congestion support), the second being a confluence zone composed of the EMA50 at $117, the SMA200 at $115.60 and finally a price congestion support at $111. As an extreme support level, which should not be lost in any case, the price congestion support at $105.5.

eth_usd_66-636857373489285235.png

The MACD on the 4-hour chart shows a slightly bearish profile with a little distance between the lines. It is a propitious structure for the continuity of the current situation.

The DMI on the 4-hour chart shows us bulls with control of the market but in a mild downward trend. On the other hand, the bears do not buy the supposed weakness to the bulls and do not react to the rise.

XRP/USD 240 Minute Chart

The XRP/USD is currently trading at the $0.304 price level after consolidating support at the $0.30 price level, which is reinforced by the presence at $0.303 of the EMA50 and the SMA100.

The first bullish target is the SMA200 at the $0.3122 price level. It is very likely that after conquering this lead moving average, the XRP/USD pair will propel itself to the next resistance level at $0.317 (price congestion resistance). The following one is $0.328 (price congestion resistance), while the next immediate resistance level is $0.334 (price congestion resistance). Above this level, the XRP/USD is likely to rise very strongly to relative highs around $0.75.

xrp_usd_71-636857373924454542.png

The MACD on the 4-hour chart shows a fully horizontal profile and in the positive zone of the indicator, albeit for very little. It is a stagnant structure that often leads to violent movement.

The DMI on the 4-hour chart shows bulls with control of the market, although closely followed by some bears that in the case of Ripple, they seem motivated to increase their activity. The trajectory of both sides of the market will lead them to collide in the coming hours, which may lead to a significant increase in volatility.

Posted-In: BitcoinCryptocurrency Fintech News Forex Global Markets General

 

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