Crypto Market Controlled by Bears Says This Week’s Crypto TA

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Trade Floor

The crypto market remains under pressure, controlled by bears. Further decline is still probable.

Currently, there is a possibility of an insignificant upwards correction, but it is too early to speak about the reversal of the whole market.

As for the Bitcoin D1 chart, it may go on declining, executing the Triangle pattern. Litecoin and Bitcoin Cash keep performing the Head and Shoulders patterns, the potential for a decline being rather high here.

Ethereum and EOS keep forming the Wolfe Waves, however, these patterns remain against the current trend unless the nearest resistance levels are broken away, so the probability of the execution of these patterns is rather low.

Bitcoin

The BTC/USD quotations remain under pressure. The market has not reached the Triangle goals yet, tech analysis still shows the potential for a decline.

The goal of the decline may be the support level of $5,700. The Moving Averages are broken away by the price, which signifies strong bearish pressure.

We should expect an attempt of an ascending correction and a test of the broken border of the Triangle near $9,190, after which the decline is expected to go on with the first goal at $7,200.

Here, the lower border of the ascending channel is situated, and the bulls are likely to prevent it from being broken away at the very first test. Yet another signal of the decline would be a bounce off the resistance line on the RSI.

As we see, the values of the indicator have not reached higher than this line yet; moreover, they have failed to break away the support level.

The negative scenario may be canceled in the case of strong growth and a breakaway of $9,800; then we may expect a reversal pattern along the uptrend to form.

Smaller timeframes are not in favor of buyers either. The quotations are traded inside a descending channel. An important resistance level lies at $9,190.

As a short-term trading idea, we should expect a test of the upper border of the descending channel and a decline with the first aim at $7,200.

A strong signal confirming this idea may be a test of the trendline on the RSI. As we see, it was the previous test that provoked falling of the BTC/USD quotations and the escape from the Triangle.

A reversal and growth may only become possible upon a breakaway of $9,190, which will mean an escape from the descending channel.

Ethereum

The ETH/USD quotations remain under the resistance level of $193.45. What is more, prices have bounced off the Moving Averages which signifies a descending impulse.

As a mid-term trading idea, we would suggest a test of the broken border of the ascending channel at $193.45 and further descending with a test of the support level at $142.45.

Upon the breakaway of this level, we should expect a movement to the local minimum of $80.00. The RSI values also suggest falling.

The indicator might be forming a Head and Shoulders pattern, in which case we might expect further decline.

The scenario may no longer be valid in the case of strong growth above $233.25. Then, the ETH/USD quotations may return inside the ascending channel, planning further growth to $265.40 and $320.00.

On H4, ethereum is moving inside a descending channel. It is forming a Flag pattern, which may mean further falling to the first aim at $142.45.

The decline may be confirmed by a breakaway of the lower border of the Flag and securing near $150.05. This variant is supported by another bounce off the resistance line on the RSI.

As we see, such a bounce has already happened before. The scenario may be canceled if the quotations rise and secure above $200.05, which will mean an escape from the channel and further growth with the first aim at $233.25.

Litecoin

The “digital silver” keeps declining, testing the support line near $55.50. As we see, the Head and Shoulders pattern has not been executed yet, so the potential for a decline still preserves.

What is more, prices have broken through the lower border of the Bollinger Bands again, which also signifies the continuation of the declining impulse.

A correction to $65.00 before further decline should not be excluded either. A bounce off the trendline on the RSI may serve as another confirmation of such a movement.

The first aim of the decline might be at $44.00, upon the breakaway of which a movement to $21.85 should be expected.

The negative scenario may no longer be valid if the prices rise above $79.05, which will mean an escape from the descending channel and further growth with the first aim at $107.80.

On H4, the quotations are trading inside a Triangle. A breakaway of the lower border of the pattern may provoke a movement to $40.25. Here, the resistance line of the RSI is also close.

The scenario may be canceled in case the LTC/USD quotations break through the upper border of the pattern and secure above $61.05, which will mean further growth with the first aim at $80.00.

EOS

The quotations have managed to bounce off the lower border of the Ichimoku Cloud again, which signifies a bearish trend and pressure.

If the growth really resumes, it may be signaled by a test of $4.30, which will also mean a reversal Head and Shoulders pattern form; then, after a correction and a test of $3.05 we may be talking about the end of the decline and the beginning of a bullish trend.

As for now, the main idea is a bounce off the signal lines of the indicator and falling to $2.06, where the lower border of the channel lies. A breakaway of this level will provoke a decline to $1.45.

On H4, the quotations are testing $3.06. Here, a test of the lower line of the Ichimoku Cloud is also present. A decline from the current levels with the aim at $2.06 should be expected.

The falling may be canceled in the case of a breakaway of $3.55, which will mean an escape from the descending channel and a movement heading above $4.30.

Bitcoin Cash

The nearest support level is at $177.35. We should expect a small correction and a test of the broken Neck, then a decline with the first aim at $100.65. The correction is also confirmed by the RSI values going below 25.

However, for full-scale growth, the bulls have to provoke a breakaway of $305.00, which will cancel the Head and Shoulders and signal further growth with the aim at $455.05.

On H4, BCH/USD also has the potential for a decline. A test of the trendline on the may confirm such a negative scenario. As we see, a few last signals have been executed thoroughly.

The decline may be canceled by a breakaway of the upper border of the descending channel and securing above $285.00. In this case, the aim will be at the resistance line at $355.00

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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