The weekly Technical Analysis is provided by Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
Needless to say, all statements and views expressed below and any forecasts contained herein are solely based on the author’s particular opinion.
This analysis may not be treated as trading advice. RoboForex and Trustnodes bears no responsibility for trading results based on trading recommendations and reviews contained herein.
For many, Bitcoin is the crypto market, and the crypto market is Bitcoin. This is quite alright, as BTC is still the absolute leader across all digital coins.
The crypto market has been going down after a long correction period over a few weeks. Currently, a new correction phase may be drawing near.
Will it actually happen and will it last for long? Even an inexperienced analyst would see the downtrend has faded out completely.
This may mean both a short term correction followed with another downtrend, and a midterm range. What can be said for certain is that Bitcoin, as well as the entire crypto market, is still bearish, which won’t change in the nearest future.
To better understand the market context, it is feasible to analyze BTC both in the short and long term.
On D1, the price is still moving along a descending channel, with the target at the support lines, one of those being $2,750.
The long term resistance, meanwhile, is at $5,740. The Stochastic is entering the oversold area, which may mean a pullback that should be confirmed with a golden cross.
Meanwhile, on H4, the MACD and the Stochastic are converging, with the Stochastic being in the oversold territory, which signals correction.
The local move broke out the descending channel resistance, causing a short term pullback that may then become a midterm one, with the targets at 23.6% Fibo ($4,187), 38.2% ($4,638), and 50.0% ($5,007).
On H1, the price is trying to form an ascending channel, which is confirmed with the Stochastic’s golden cross. The immediate target is the channel resistance, another one may be located somewhere near $4,187.
Then, after hitting the resistance, the prices will move to the upper projection channel, with the targets at $4,638 and $5,007. The major support is at the $3,460 low.
On H1, EOS made a new low, and then the MACD and Stochastic converged, signaling an upward correction. The price is meanwhile testing the short and midterm channel resistance levels.
The closest resistance is at $3,28, and once it gets broken out, the correction signal will become extremely strong. The price may then move to the projection channel to reach 23.6% ($3.49) and 38.2% ($3.88) Fibo. Another upside correction confirmation signal will be the golden cross formed by the Stochastic.
On H1, there was a downtrend that broke out the latest descending channel, but now, with the MACD and Stochastic convergence, it is over.
The price is correcting within a range, while having chances to extend till the projection channel resistance at $127.26, or 23.6% Fibo.
Then, an uptrend may reach 38.2%, or $145.93, and 50.0%, or $160.62. The support is currently below the round number of $100, namely at $98.04.
On H1, LTC is testing the midterm descending channel resistance. The latest rising move broke out the local high, forming a pullback, previously signaled by both the Stochastic and MACD.
The descending trend have so far corrected to 23.6% Fibo. The resistance is being tested, and in case it’s broken out, the price may rise till $35.40.
In its turn, if this one gets broken out, LTC may reach 38.2% Fibo, or $37.80, and 50.0%, or $41.30. Conversely, if the price fails to break out the resistance, it will bounce back to the local support at 29.75, and then to the major one at d$26.28.
On H1, XRP is testing the midterm support. In the short term, however, there may be a reversal after the short term channel resistance breakout, also confirmed with the MACD and Stochastic convergence.
The upside correction may first have the resistance at $0.4155 as its target, and then the major resistance at $0.4775.
As the midterm support is being tested, any uptrend that may form may only be a short term one. Conversely, if the support at $0.3494 gets broken out, the crypto may fall till $0.2450.