Strong Bullish Rally Says This Week’s Crypto Technical Analysis

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Crypto trader

Bitcoin keeps growing steadily, the head and shoulders pattern being irrelevant once again.

At the same time, EOS and Litecoin are preparing for a breakthrough of the resistance lines; Bitcoin Cash and Ethereum are heading for their new maximums, but no strong ascending trend is to be seen here yet.

The market altogether looks ready for continuing the rally. The possibility of tough testing of the area around 15,000 USD by the Bitcoin is not to be dismissed; a breakthrough will mean escaping the long-term descending channel and finishing the correction. Such scenario promises new heights for cryptocurrencies.

Bitcoin

The cryptocurrency is moving inside a strong bullish rally. On the daily chart the upper border of the descending channel is really close, which may provoke a serious correction.

Such correction is also proved by testing of the descending resistance line on RSI. However, a breakthrough of the channel and closing above 15,000 USD may mean the currency will keep going up, aiming above 20,000 USD.

The main trading idea might be a bounce off the resistance line at 13,270 USD and a test of the support line at 11,275 USD. Another idea would be an attempt for further growth by escaping the long-term descending channel.

A test of the support line on RSI will be an additional confirming signal. What might prevent the cryptocurrency from growing is a steep fall below the level of 10,355 USD, which might provoke further correction down to the level of 8,965 USD.

On H1, Bitcoin is moving inside the channel. RSI values have bounced off the resistance line hinting at potential testing at the level of 13,270 USD before yet another correction.

As a short-term trading idea, a test of the lower boundary of the ascending channel at 11,275 USD and the following growth are to be expected.

The ascending trend may be confirmed by a breakthough of the resistance line and closing above 13,270 USD.

In this case a test at 15,000 USD is to be expected. This scenario may no longer be valid if the currency falls below 11,275 USD, which will mean escaping the channel and subsequent falling up to 10,355 USD.

However, such a decline should also be considered another correction before new growth.

Ethereum

Ethereum is testing the resistance line. The cryptocurrency is generally growing, the main idea having been its growth to the width of the ascending channel it has broken through.

As we may see, the market has reached this goal. Presently, a decline and a test of the lower boundary of the ascending channel at 285 USD is to be expected.

Then the currency will grow again potentially aiming at 416 USD. The scenario may be cancelled if Ethereum falls below 286 USD which will mean escaping the ascending channel and further drop to 219 USD. The rise of the cryptocurrency will be confirmed by closing at 348 USD.

On H1, Ethereum has successfully worked out the model 5-0. A short-term idea might be a test of the support level at 320 USD and subsequent rise with the goal at 416 USD.

In case of substantial growth and a breakthrough of the upper boundary of the ascending channel it is highly probable that the growth will speed up.

The scenario may no longer be valid if Ethereum falls below 315 USD which will mean escaping the ascending channel and further correction potentially aiming at 286 USD.

EOS

EOS is trading in the ascending channel. The potential for the head and shoulders model is reducing. Obviously, the “right shoulder” of the model is already much bigger than the “left shoulder”, which points at the pressure from the bulls.

It is highly probable that such scenario will prevent the model from implementation and demonstrate growth of the asset.

The main trading idea will be a decline and testing the lower boundary of the channel at 7.30 USD. A bounce and further growth up to 9.85 USD are to follow. This scenario may be proved by a test of the triangle lower boundary.

A breakthrough of the upper boundary will prove the ascending trend. The scenario may be cancelled if the currency falls below 7.20 USD which will mean escaping the channel and subsequent correction up to 5.90 USD.

On H4, EOS has managed to bounce off the lower boundary of the ascending channel. This means further growth aiming at 8.77 USD.

An additional signal confirming the growth will be a bounce off the support line on RSI. Yet another confirmation of the ascending trend will be a breakthrough of the resistance line and closing above 7.55 USD.

This scenario may no longer be valid if the currency falls below the lower boundary of the channel and close under 7.20 USD; this will mean further correction up to 5.95 USD.

Litecoin

Litecoin is moving above the Ichimoku Cloud which hints at an ascending trend. The price keeps bouncing off the signal lines, demonstrating the strength of the trend.

The main idea on the daily chart will be an attempt of declining and testing the closest support line at 124 USD, followed by another rise with the first aim at 146 USD.

A breakthrough of this area will mean an acceleration of growth to the next goal around 187 USD. Maximum possible correction points at the test at 105 USD.

The scenario will be cancelled if the currency drops and breaks out the support line at 102 USD. This will mean escaping the channel and subsequent falling with the aim at 66 USD.

On H4, Litecoin is moving in the ascending channel. It has bounced off its lower boundary which reveals a potential for further growth, confirmed by the test of the RSI trend line, as well as by a breakthrough of the ascending resistance line on the indicator and closing at 146 USD.

The scenario will not be valid if the currency falls below 123 USD, in which case further correction aiming at 102 USD is to be expected.

Bitcoin Cash

Bitcoin Cash is renewing its maximum. At the moment it is breaking through the resistance line which may signal further growth with the first goal around 636 USD.

This scenario is confirmed by breaking through the upper boundary of the RSI “triangle”, which also means acceleration of the current growth.

The scenario will no longer be valid if the currency breaks through the lower boundary of the channel, aiming at 337 USD.

On H4, we may see a tough test of the resistance line at 521 USD. The upper boundary of the ascending channel also lies here.

If the cryptocurrency breaks through this level, it will grow heavily first aiming at 636 USD. Yet additional confirmation of this scenario is the bouncing off the Bollinger Bands lower boundary, demonstraiting the bulls’ strength.

A short-term trading idea will be a test of the support line at 450 USD and further growth. The scenario will be cancelled if the currency drops below the lower boundary of the channel aiming at 226 USD.

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.

Copyrights Trustnodes.com

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