Potential for Serious Growth Says This Week’s Bitcoin Crypto TA

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Trade Floor

The leading cryptocurrency remains above the important support level of $9,100.

The potential for serious growth and a renewal of the local maximum preserves. Moreover, we are contemplating several bounces off the lower border of the Triangle pattern, and each next test is higher than the previous one, which may also mean the presence of bulls on the market and highlight the importance of the lower border of the pattern.

A good confirmation of the upward movement might be a breakaway of $11,000. Conversely, a breakaway of the lower border of the pattern may signify a negative scenario for the BTC/USD as this will mean a correction to $7,200.

Unfortunately, other coins remain under pressure with no quality signals of a reversal and the beginning of an uptrend. Litecoin and Bitcoin Cash are moving inside reversal patterns, which may drop significantly below the existing levels at any moment. The technical analysis of EOS and Ethereum on smaller timeframes also promises a high probability of falling to new minimums.

Bitcoin

BTC/USD quotations have failed to escape the Triangle pattern again. In the technical analysis, moving inside such a pattern means some ambivalence and a decrease in the volatility; however, later on, it is followed by strong growth in the direction of the breakaway.

In most cases, the Equilateral Triangle patterns are broken out in the direction of the trend, but a breakaway of the lower border should not be excluded either. Here, on the daily chart, Bitcoin is pushing off the area of the Moving Averages, which, again, points at an uptrend.

An important support area is situated around $9,115; a breakaway of this area may send the leading crypto asset into a serious correction aiming at the levels of $7,200 or $5,825.

As the main trading idea, we should, anyway, expect a bounce off the lower border of the ascending channel and an attempt upwards with the first goal at $11,005. A breakaway of this level will signify a high possibility of reaching $12,385.

On H4, the quotations are also squeezed inside a smaller Triangle pattern.

As a short-term trading idea, we should expect a test of the lower border of the pattern and the beginning of growth to $11,005. A breakaway of the upper border of the Triangle may confirm the growth.

Yet another signal in favor of such a movement may be a bounce off the support line on RSI. An active upward movement is likely to be preceded by a breakaway of the upper border of the descending channel and closing above $12,000.

A negative scenario for BTC/USD might be a breakaway of the lower border of the Triangle pattern and securing under $9,115. In this case, falling will aim at the lower border of the bearish channel at $7,200.

Ethereum

The second-biggest cryptocurrency is still moving inside an ascending Wolfe Wave forming.

For the completion of the pattern, one more decline, aiming at $146, is needed, where the price may start ascending from. The Moving Averages are also crossing, which is an additional sign of pressure from the sellers.

A potential bounce and the beginning of ascending might be supported by a test of the support line on RSI. A sort of a confirmation of the idea may become a breakaway of the descending trendline on the indicator.

The potential aim of the growth and realization of the ascending pattern is at $275. The scenario may no longer be valid in case of a steep decline and a breakaway of $120, which will cancel the pattern and send the price even lower.

On H4, the price is squeezed inside a Triangle once again. Moreover: a similar pattern has formed on RSI, where a test of the resistance line may provoke a decline of the cryptocurrency.

As a short-term trading idea, we should expect a bounce off the upper border of the Triangle and a movement to $146.00. The decline might be confirmed by a breakaway of the support level and securing under $174.95.

The negative scenario may no longer be valid in case of strong growth and a breakaway of the resistance line with securing above $200.00. The closest aim of the growth might be the area of $236.00.

EOS

On the daily timeframe, the cryptocurrency keeps trading under the Ichimoku Cloud which signifies a downtrend.

Also, we can see constant bounces off the signal lines of the indicator, which demonstrates the strength of the bears at the moment.

An uptrend may only resume upon a breakaway of the upper border of the Cloud and securing above $5.00.

As the main trading idea, we should expect further decline with the aim at $2.15. It may be confirmed by a breakaway of the lower border of the ascending channel and falling below $3.20.

On H4, EOS keeps moving inside the bearish channel. Judging by the symmetrical structure of the movement, we may suppose that the aim of falling might be at $2.15.

So, as the short-term trading idea, we should expect a test of the upper border of the descending channel and a further decline. The scenario may no longer be valid in case of strong growth and a breakaway of the upper border of the Cloud with securing of EOS/USD above $4.00, which will mean further growth to the aim of $4.85.

Litecoin

The digital silver remains under the neck of the reversal Head and Shoulders pattern. The goal of the decline is still the area below $40.00.

What is more, LTC/USD quotations have fallen below the middle line of the Bollinger Bands indicator, which means strong pressure from the buyers.

The closest aim of the decline is $64.00. To cancel this scenario, the bulls should reach above the right shoulder of the reversal pattern, in which case only we may expect another wave of growth.

However, at the moment the quotations remain below the resistance level, and the main idea suggests further development of the downtrend.

On smaller timeframes, we can see a decline of the volatility and another Triangle forming.

The closest aim of falling is at $64.30. A bounce off the upper border of the pattern and a further decline is to be expected. Upon securing below the support line, the next level of the decline may be at $53.50.

The scenario may no longer be valid in case of a breakaway of the upper border of the Triangle and securing above $79.50. This may provoke an escape from the descending channel and the beginning of growth to $107.80.

Bitcoin Cash

The quotations of the cryptocurrency keep moving below the Ichimoku Cloud, which signifies the continuation of the downtrend.

As we may see, the quotations are pushing off the lower border of the Cloud which is yet another demonstration of the bears’ strength. The growth may only resume in case of a breakaway of the upper border of the Cloud and securing above $400.

As the main trading idea, we should expect a decline with the first goal at $248. A breakaway of this area will provoke a further decline to $177 as the beginning of the execution of the reversal Head and Shoulders pattern.

On H4, BCH/USD is trading inside a bearish channel. An important resistance level is at $354. A breakaway of this level may signify resuming of growth with the aim at $457.

However, as the main scenario, we should expect a test of the upper border of the descending channel and a further decline aiming at $248. This scenario may be confirmed by a bounce off the resistance line on RSI.

As we may see, the indicator values have pushed off this line several times, which has provoked a decline.

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

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