Bullish Pattern Says This Week’s Crypto Technical Analysis

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Trading abstract.

Bitcoin failed to break through the resistance area and secure above $14,000, which could provoke aggressive growth.

Presently the currency is undergoing a serious correction; other cryptocurrencies have also dropped significantly, but generally the movements are in accordance with forecasts.

BTC/USD is testing support at the lower border of the channel, preserving the potential for a bounce and another attempt of growth.

What is more, on smaller timeframes graphic analysis shows a bullish pattern. However, in case of a breakthrough of the support line and securing under $9,000, the goal of decline will be at $7,275.

Ethereum and EOS are forming ascending patterns on daily charts. Litecoin is forming another reverse head and shoulders pattern with the nearest goal of ascending at $100, upon hitting which the risks of descending may grow again. Bitcoin Cash is ready for a bounce up to $355.

Bitcoin

The currency is undergoing a correction; as we may see, the quotations have escaped the ascending channel, which points at a significant slowdown of the current bullish impulse.

However, BTC is still trading above the support level at $9,265, having the chance for growth. Only in case this area is broken down, further decline with the first aim at $7,275 becomes possible.

The main trading idea could be testing the lower border of the ascending channel at $9,265 and further growth. The latter will be confirmed if the resistance level is broken and the quotations secure at $13,215.

On H4 the quotations also push from the support level. An ascending Wolfe wave is forming here as well. Inside the pattern a bounce from the lower border of the descending channel and an attempt of growth to $11,250 are to be expected.

This scenario will be confirmed by further growth and hitting $10,000. Full-scale growth will become possible, if the quotations break through the upper level of the descending channel and secure above $12,200.

The scenario will no longer be valid if the price falls significantly, breaking through the lower border of the descending channel. In this case there will form a strong signal for selling the currency. The goal of the decline will be below $6,000.

Ethereum

Ethereum is moving inside a strong descending correction. The quotations have escaped the quick ascending channel. The next stop might be at the support level of $185.

This will be testing the lower bullish 5-0 pattern. In case of a successful bounce and securing above $265, further growth with the aim at $360 should be expected.

The growth might not happen in case of strong pressure from sellers and the securing of below $185, which will mean escaping the channel and further decline with the aim at $140. In such circumstances the price may return to $80.

On H4, price is testing the lower border of the descending channel. Current dynamics suggests a bounce and testing of $265, where a turn is expected, followed by further falling with the aim at $185.

In case of a breakthrough of the descending channel and securing above $280, growth might resume.

However, if sellers hold the pressure and manage to secure below $180 from the current level, this will become a strong signal for further decline without an ascending correction.

EOS

EOS keeps falling steeply. However, soon it will be testing the important support area at $3.15, as well as the lower border of the ascending channel.

If buyers manage to keep price inside the channel, a bounce and further growth with the first aim at $6.55will follow.

The growth will be confirmed by a breakthrough of the resistance area and securing above $4.40. The variant will no longer be possible if the currency keeps on falling below $3.10. This will signify an escape from the channel and falling towards $1.50.

On H4 the currency also demonstrates potential for a reverse from the current levels, confirmed by a Wedge on RSI.

The trading idea will be confirmed if the price breaks through the upper border of the pattern and secures above $4.40, which will signify a return into the channel and a continuation of growth with the first goal at $6.35.

The variant will no longer be possible if the currency keeps on falling below $3.10. This will signify a breakthrough of the lower border of the channel and acceleration of falling towards $1.50.

Litecoin

On the whole, Litecoin is moving in accordance with expectations. Sellers demonstrated their strength. However, an important support level is at $65. The correction level of 0.618% is also there.

As the main trading idea, we should expect further decline with the goal at $64.50, at which point buyers are likely to turn the price upwards. The aim of such growth will be at $100.

The variant will be confirmed by a breakthrough of the descending trend line on RSI; what is more, the values of the indicator has fallen below 30 for the first time since December 2018, which also might mean a bounce up.

The variant will no longer be valid in case of a breakthrough of the support level and securing under $60, which will signify further decline aiming at $40.

On H1, Litecoin is descending inside the channel. As a short-term trading idea, testing of the upper level of the descending channel at $80 and further growth to $64.50 are to be expected.

Yet another confirmation of this variant may be a bounce off the descending trend line on RSI.

The reverse will be confirmed by a breakthrough of the upper border of the descending channel after testing the support level at $64.50.

Bitcoin Cash

On the daily timeframe the currency is steeply declining. RSI here has also tested the values below 30 for the first time since the end of 2018. Such testing might mean a turn at $225.

The first goal of growth will be $355. An additional confirmation of growth may be a breakthrough of the descending id trend line on RSI.

The variant will no longer be valid in case of a breakthrough of $255, in this case the goal of the decline will be at $150.

On H4 the quotations keep moving inside the descending channel. A fall to $255 is expected, then a breakthrough of the upper border of the descending channel, a reverse and further growth with the aim at $465.

The scenario will no longer be valid in case of a decline and a breakthrough of $255.

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.

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