Wave of Correction Says This Week’s Crypto Technical Analysis

0

Trade Floor

The cryptocurrency market is experiencing yet another wave of correction. Bitcoin continues declining, potentially ready to test the support level at $9,000; for the buyers it will be important to see a bounce off this level.

Otherwise the next goal of decline may be at $7,150. Judging by the daily charts, Litecoin and Ethereum are ready to develop new waves of growth; however, without support from BTC there is no reason for waiting for a strong increase.

Ripple is testing the lower border of the long-term channel; it is logical to expect a strong bounce off the current support area, followed by a possible movement towards the upper border at $0.5700.

EOS looks rather weak in comparison with its other rivals; further decline to $3.15 is not excluded.

Bitcoin

The leading cryptocurrency is still correcting. On the daily chart we can still see an uptrend, the quotations are moving above the Moving Average level.

The important support level is still at $9,000. However, the bullish tendency is slowing down; as we may see, the price is renewing the minimums.

In case of a decline and a breakthrough of $9,000 there may emerge potential for further decline to the goal at $7,190.

As the main trading idea on the daily chart we should expect a bounce off the lower border of the ascending channel and further growth, aiming at $13,400.

This idea may be confirmed by a breakthrough of the nearest resistance area and securing above $10,745; conversely, it may not be realized if the quotations escape the channel.

On H4 the quotations are moving inside the descending channel. There is potential for further decline with the aim at $9,000. However, it is too early to speak about a reversal for a decline.

The current structure of movement consists of yet another ascending pattern Wolfe’s Wave forming. Inside the pattern a test of $9,000, then a bounce and an attempt of growth to the first goal at $12,000 are expected.

The trading idea may be confirmed by a breakthrough of the upper border of the descending channel and securing above $10,550.

The scenario may no longer be valid in case of a steep decline and a breakthrough of $8,000, which will signify cancellation of the bullish model and further decline to $7,190.

Ethereum

Ethereum is again bouncing off the important support level of $185. However, the pressure of sellers is quite strong, the price has broken through the area of Moving Averages, where the lower border of the ascending channel is situated.

Another test of this support area should not be excluded, followed by growth to $260 and $320. This variant is supported by the forming of a Failure Swing pattern on RSI.

Growth may be confirmed by a breakthrough of the resistance level and securing above $225. The scenario may no longer be valid in case of a decline and a breakthrough of $185; this will signify escape of the quotations from the ascending channel and further decline to $145.

On H4 Ethereum is trading inside a descending channel. As a short-term variant a test of the resistance at $225 and further decline to $185 may be expected.

This scenario is supported by a bounce off the resistance line on RSI. If buyers manage to push the price above $240, this will signal completion of a reverse model Double Bottom and beginning of growth with the first goal at $320. Conversely, if the price breaks through $185, it may fall as deep as $145.

EOS

EOS keeps declining, trading above the Cloud, which signifies a bearish trend. A return to the uptrend requires a breakthrough of the upper border of the Cloud and securing above $6.10.

The main trading idea on the daily chart may be a bounce off the signal lines of the indicator and further decline to the first goal at $3.15.

A breakthrough of this area with the quotations escaping the ascending channel may signify the development of a descending impulse, aiming at $1.50.

Technical analyses of smaller timeframes also demonstrate a bearish impulse. Here EOS is trading inside the Cloud, which signifies a slow-down of the decline.

As a short-term trading idea a test of the upper border of the descending channel near $4.55 and further decline aiming at $3.15 should be expected.

The scenario may not realize if the price grows robustly, breaking through $4.55, which will signify an escape from the channel and further growth with the first aim at $5.80.

However, a full-scale return to the bullish trend may happen only after a breakthrough of $6.60.

Litecoin

Litecoin has managed to push off $75 as well as the area of Moving Averages, which means the bullish trend is still in force.

The quotations keep moving inside the channel. What is more, on RSI a reversal pattern – an upside-down Head and Shoulders – is forming.

In case of a breakthrough of the descending trend line an attempt of growth with the potential goal at the local maximum is to be expected.

This scenario may be confirmed by a breakthrough of the nearest resistance area and securing above $107.

Conversely, it may be canceled by a decline below $75, in which case further decline to $43 should not be excluded.

On H4 Litecoin keeps moving inside the descending channel. The Moving Averages also point at a bearish impulse.

However, there is still potential for forming of a reversal pattern Double Bottom, so after testing $75 a bounce and an attempt of a breakthrough of the upper border of the descending channel are to be expected. In this case the goal of the growth will be at $127.

The scenario will no longer be valid in case of a breakthrough of the local minimum and securing under $75, which will cancel the pattern and stop further falling.

Ripple

The technical analysis of the daily chart of Ripple looks rather simple. The quotations are testing the lower border of the sideways channel; it is logical to expect a surge up and an attempt of growth to the first goal at $0.4490.

This scenario is supported by another bounce off 30 on RSI. The growth will be confirmed by a breakthrough of the descending trend line on the indicator and securing above $0.3600.

The scenario will be canceled if the price falls below the lower border of the channel and secures under $0.2780, in which case the decline may even strengthen.

On H4 there is still potential for forming of a reversal pattern Double Bottom. Upon a breakthrough of the upper border of the descending channel the current decline may turn around and start growing to the goal at $0.4490.

A breakthrough of the resistance line on RSI will become a confirming signal. The scenario will be canceled if the quotations fall below the local minimum, in which case the reversal pattern may not be completed.

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.

Editorial Copyrights Trustnodes.com

Comment

100000
  Subscribe  
Notify of