Maybe Bitcoin is Looking to Test $20,000 Says This Week’s Crypto TA

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Crypto trader

Bitcoin buyers failed to secure their position above the upper border of the long-term descending channel.

In case of a successful breakthrough we could talk about a long-desired testing of the area around 20,000 USD and continuation of the bull rally.

However, there is still a potential for growth; most likely, we are contemplating another correction before the cryptourrency market growth.

Bitcoin is forming a reversal model on small time-frames; if it forms successfully, we will soon see a breakthrough of another maximum and continuation of the bullish trend.

Meanwhile, EOS looks rather weak in the current situation. Here, the local minimum has been broken through, the price has exited the channel, so the correction might take long.

Bitcoin

The cryptocurrency has pushed off the upper border of the descending channel and is experiencing correction.

However, there is still potential for growth. As we can see on the daily chart, RSI values have returned to the support level.

At the moment of testing this area, another bounce and growth of the price are not impossible.

The quotation BTC/USD itself keeps moving in the ascending channel. As the main trading idea another test of the lower border of the ascending channel around 11,275 USD, followed by growth, should be expected.

Next step will be a breakthrough of the upper border of the channel and securing above 15,000 USD.

In this case a test of the level around 20,000 USD and rigorous development of the bullish trend are highly probable.

This scenario does not fulfill if the price will drop and break through the level around 11,000 USD, followed by further decline down to 7,475 USD.

On H1 an upside-down head and shoulders model is likely to form. Inside the model the currency is falling down to 11,275 USD, on which level formation of the right shoulder will be complete.

Then a bounce-off and yet another growth will follow. This scenario will be confirmed by another test of the trend line on RSI.

The model will no longer be valid in case of a decline below 9,335 USD. In this case the next goal will be 7,275 USD. The pattern will be complete if the price breaks through 12,000 USD.

Ethereum

Ethereum remains inside the ascending channel. What is more, buyers managed to remain above the important support level.

One strong signal of further growth is another test of the support line on RSI. It is a second test, as we may see, so growth from the current levels is to be expected.

The first goal of the ascending trend will be the area around 385.00 USD. The scenario will no longer be valid if the currency falls below 261.00 USD, which will mean exiting the ascending channel and further decline with the goal at 177.00 USD.

On H1 Ethereum is squeezed inside the wedge model. The main trading idea would be a bounce off the upper border of the model and a drop to the lower border around 263.00 USD.

A test of the resistance line on RSI confirms the decline. After the bounce off the support line the cryptocurrency is likely to grow inside the wedge model.

The first goal will be at 361.00 USD. The growth will be confirmed if the currency breaks through the upper border of the model and secures above 305.00 USD.

The scenario will not be valid if the currency declines below the support level and secures below 263.00 USD. In this case the descending correction will develop.

EOS

EOS failed to secure its position above the Ichimoku Cloud. At the moment we are talking about a mid-term trend reversal to the downwards.

The quotations have exited the ascending channel. As the main trading idea ascending correction and a test of the lower border of the Cloud at 6.7 USD are expected. Then a bounce and potential decline down to 4.58 USD are to follow.

If sellers manage to secure their position below that, we may talk about a drop to 3.13 USD. The negative variant will no longer be valid in case of strong growth and securing above 7.20 USD, which will mean a breakthrough of the upper border of the Cloud and a return to the bullish trend.

On H4 EOS is pushing off the lower order of the Cloud. The quotations are squeezed inside the triangle model.

If the lower border of the model is broken through and trading closes above 5.30 USD, the currency is likely to keep falling to 4.38 USD.

The decline will not happen in case of strong growth and a breakthrough of 6.50 USD. This will mean a breakthrough of the upper border of the Cloud and another attempt of growth with the first goal around 7.80 USD.

Litecoin

Litecoin is also experiencing a correction. However, it keeps testing the lower border of the Bollinger Bands indicator.

The quotations are locked inside the ascending channel, which, all in all, signifies a potential for further growth.

As the main trading idea we expect declining and a test of the lower border of the channel at 102.40 USD. Next a bounce and further growth with the first goal at 160.00 USD will follow.

The growth will be confirmed if the resistance line is broken through and the currency secures above 126.00 USD.

The ascending variant will no longer be valid if the currency falls below the lower border of the channel and secures below 100.00 USD. In this case further decline will follow, with the goal at 64.00 USD.

On H4 Litecoin is trading above the important support level around 102.00 USD. As long as buyers manage to stay above the lower border of the channel, we may talk about further growth.

What is more, this structure represents a trend continuation pattern “1 + 1”. The goal of this model will be at 185.00 USD. This scenario is confirmed by a bounce off the trend line on RSI.

A breakthrough of the descending resistance line on the indicator will be sort of a confirmation as well.

The scenario will no longer be valid if the currency falls below 100.00 USD, which will signal an exit from the channel and further decline with the goal around 65.00 USD.

TRON

TRON is testing the support areas. There is still potential for growth while buyers still manage to stay above the former border of the ascending channel.

However, normal growth is not possible as might be seen during the test of the declining resistance line on RSI. The quotations are bouncing off the maximums and start correction.

Now the indicator values are testing the support line which signals growth right from the current levels with the first goal at 0.04187 USD.

There is a possibility that buyers will manage to raise the price even higher, up to the upper border of the channel. However, for strong growth we need a breakthrough of the resistance line on RSI.

The scenario will not be valid in case of a decline below the lower border of the channel ad securing under 0.0201 USD. Then the next goal will be at 0.0998 USD.

On H4 there is a bullish model “5 – 0” forming. This model implies testing of the lower border of the channel followed by further growth renewing the local maximum area.

The scenario will not be performed if the currency falls below the lower border and secures above 0.0282 USD. In this case further decline down to 0.0201 USD is to be expected.

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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