Update-1 of #DCXTechnicalThursday
Welcome to #DCXTechnicalThursday. In this series, our growth marketer Sachin Jain will share charts on various coins and help you understand basics of Technical Analysis.
Sachin Jain is a well known Technical Analyst and has 1000s of people following him through his community for cryptocurrency. He is into cryptocurrency trading since November 2017 and into stock market trading from last 2 years.
Let’s learn the basics of Technical Analysis first, over to Sachin!
This week for our #DCXTechnicalThursday, we are going to analyze Price Action of Top 3 most talked about coins — Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP)
Before moving onto the charts, I would like to briefly describe the basics of technical analysis.
Technical analysis is not as complicated as it looks! It’s all of us who make it complicated by applying 100’s of patterns, indicators, etc. I have always asked everyone to keep things simple using the basic technique called ‘Price Action’.
What is price action?
Price action is simply making trading decisions from the price chart. This also means that we will not use indicators but simple horizontal lines to identify dynamic support & resistance. You can use basic indicators like VWAP, Stochastic and RSI to get a perfect entry point but nothing more is usually required.
So let’s jump onto our charts.
Pair: BTC/USDT | Time Frame: 1 Day
BTC was trading at $7697 (when the blog was written) & made a high of $7780 today. Today’s high has been acting as resistance from last 16 days which shows that the bulls are facing a difficult time to push the price higher. But this does not mean that the bears are in control. As long as the support of $7330 is intact on daily basis, the trend will be upwards. If $7330 gets broken, the next support for BTC as per the price action is at $7090 and $6600 respectively. On the upper side, if BTC is able to break through $7780 and close above it on a daily time frame then it shall advance further to $8000 followed by $8400.
Pair: ETH/USDT | Time Frame: 1 Day
Like BTC, ETH is also range bound from last 2 weeks. ETH was trading at $606 (when the blog was written). On the upper side, ETH will face resistance around $636 and on the downside it will find a support near $570.
If the support gets broken on a daily basis, ETH will head towards $510 and $450 respectively. Once the resistance gets broken on daily basis, ETH will straight away rally to $700 followed by $750. So there will be massive movement on both the sides.
Pair: XRP/USDT | Time Frame: 1 Day
XRP was trading around $0.68 (when the blog was written). XRP has been consolidating for a long time now and is likely to take off. Interestingly, XRP is forming an inverted head & shoulder on a daily chart and indicating bullishness. Although, Inverted H&S is yet to form and should be done in a couple of days. Once the price action breaks the neckline $0.71 (acting as a resistance for now) of the invested H&S on a daily basis, XRP will rally to $0.86-$0.92 range. Failing to break the neckline will again push XRP to sub $0.60 zone.
Note: All the above charts & analysis is only for educational purposes.
We are doing a trading workshop “Learn to Trade in Crypto” on this Saturday, June 9 from 2–5 pm!
Let us know which coins should we do our next TA blog on and what will you like to learn in the next article of #DCXTechnicalThursday
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