At the time of Bitcoin testing the resistance and forming another reversal pattern, Litecoin is storming the new hills. In so far as is evidenced by the technical analysis of the structure of the movement of the LTC/USD price, we are only at the middle point of the rise.
It cannot be ruled out that the rally will actively continue with the aim to reach $200. It is highly possible that such growth will provoke the ascending trend for other cryptocurrencies as well.
However, in case the digital silver drops below $95, the market will experience the ongoing descending correction trend.
Breaking out the resistance at $9000 will be a strong signal of the rise of Bitcoin and of the market in general, which will cancel the Head and Shoulders reversal pattern. Soon $10000 will be tested as well.
The crypto currency is moving along the ascending channel. The moving averages are directed upwards and the distance between them is growing which indicates the bullish trend and the strength of it.
However, Bitcoin has not been able to stay above $9000. Currently, there is a potential for the u-turn Head and Shoulders pattern to form.
We can expect that within this pattern Bitcoin will test the level of $8450 and that the price will be reduced.
In case of breakout of the support level and closing below $7400, we can expect Bitcoin to form a pattern and start to head down. Another support at $6185 may be the downfall target.
It is important to understand that, as long as the support level is not broken out, it is too early to talk about the finishing of the pattern and of the beginning of the development of a downfall.
Conversely, the price may break out the level of $9195, in which case we can expect the continued growth above $10000.
One should regard the fall to the lower channel boundary with the testing of the $7410 level and the continued rise above $9195 as the primary scenario. In case of the bounce off at $8450 a downfall is quite probable.
On H1, the price is forming a Triangle chart pattern. At the same time, the asset has been able to go out of the limits of the descending channel.
As a short-term scenario, we can expect the testing of the broken out boundary of the channel at $7800 and an attempt to continue the rise with the first target at $8845.
The breakout of the upper boundary of the Triangle pattern and closing above $8400 will be the confirmation of the rise.
Conversely, this rise may be prevented in case the price breaks out the lower boundary of the Triangle pattern and closes below $7,400, which will be a signal for a further fall to $7,000.
EOS is correcting and moving down. However, it is staying above the upper border of the Ichimoku Kinko Hyo Cloud, which indicates the continued uptrend.
At the same time, the signal lines have crossed in favour of sales, which, in this case, indicates the slowing down of the growth.
There is also a potential for the end of the rise provided there is a downfall and where the crypto price closes below $4.55. In this case, we can expect the downtrend to resume and the fall continues.
Most likely, the price will test the upper cloud boundary at $5.95, then will bounce off up and will continue going up. The resistance being broken out and the price closing above $7.15 would confirm the rise.
On H4, the price movement is within the boundaries of the ascending channel. We had seen a similar structure of the movement on Litecoin chart before the strong rise started.
The price is testing the support level at $5.95. Here a Triangle pattern is also being formed. In the short run, we can expect the price to break out the upper boundary of the pattern, close above $7.00 and continue to rise.
If the buyers fail to stay above and if the lower boundary of the Triangle pattern gets broken out with the price closing at $5.90, this will indicate a fall with the first target being at $4.58 and below.
ETH is still above the upper boundary of the ascending channel. The important support area is still around $230.
The current structure of the movement of the price indicates the decrease of volatility after which a strong movement is expected. On D1, Ether will most likely test the support level and then continue rising at least at the width of the ascending channel.
The additional signal of a rise is a bounce off the support line on RSI. Conversely, it may fall down, break out the upper ascending channel boundary and stay below $230, in which case it is first likely to hit $190, and then the lower boundary of the channel at $160.
On H1, Ether is testing the resistance, which makes the forming of the inverse Head and Shoulders pattern quite probable.
In this case, we should expect the fall and testing of the support at $230 where the Right shoulder of the reversal pattern is expected to end.
After this, a rise with the first target at $285 is expected. This will be confirmed by the breakout of the Neckline and a close above $250.
Conversely, the price may fall down and break out the local minimum with a close above $220. In this case, we can expect that the pattern will stop forming and that the downfall continues.
Litecoin is steadily moving up. Having regard to the price structure of the movement, we can assume that this is only the middle of the rise. The next target is at $185.
As we can see, the values of RSI are within the Triangle pattern. The breakout of the upper boundary will indicate the acceleration of the current upward movement.
In this case, Litecoin will quickly reach the resistance level at $185, On D1, Litecoin will most likely test the support at $122 and then will continue to rise.
Conversely, the price may fall down, break out the lower boundary of the channel and stay below $120. In this case we can expect it to continue heading down towards $97 and then to $83.
On H1, one can also see LTC bounce off the important support level. A strong signal of rise here is the breakout of the descending trendline on RSI. This indicates a possible breakout of the resistance level and closing above $122.
In case the correction and fall below $95 continue, we should expect the decline. This scenario may indicate the long-term correction for Litecoin.
The D1 for Bitcoin Cash looks being ready for a rise. The price is trading above the upper boundary of the ascending channel. However, the target rise to the width of the channel has not happened yet.
The eventual testing of the support line on RSI confirms the continuation of the upward movement. For this reason, on D1 we should expect a quite likely correction attempt and a support testing at $340, followed by a rise with the target at $490.
Conversely, the price will break out the upper boundary of the channel and stays below $335. In this case, we should expect the ongoing descending correction with the target at $225.
The analysis of the H4 also indicates a likely fall towards $335. The price of the cryptocurrency is within the Triangle chart pattern. The nearest support area is located lower.
At this stage, we can expect the breakout of the lower boundary of the Triangle pattern and the continuation of the fall towards the lower boundary of the ascending channel. After such a fall, we can expect a rise above $485.
Conversely, the lower boundary of the channel may be broken and the price may stay below $320. In this case, we should expect the continuation of the fall with the target at $225.
The weekly Crypto Technical Analysis is provided by Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
Needless to say, all statements and views expressed above 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.