After good growth, cryptocurrencies have returned to previous levels as buyers are not strong enough to create a bullish trend on the market.
Unfortunately, even Bitcoin does not look ready to rise yet, as its current structure reminds of a Bearish Flag, which may provoke a breakaway of the minimum and a decline to new minimums very soon.
Presently, XRP looks rather interesting; there is a reversal pattern forming, and in the case of a breakaway of the resistance level, the price should be ready for a new wave of growth as the execution of the pattern.
Ethereum, Litecoin, and EOS remain under the bearish pressure and are likely to keep declining.
The price has already pushed off the nearest resistance area. Currently, the bearish pressure is increasing, and there is a good chance to see the leading cryptocurrency decline further with the first aim at $6,875.
Such a scenario is confirmed by another bounce off the resistance line on RSI. What is more, the price is moving inside a channel and has tested its upper border, following the test by a bounce.
It should not be forgotten that the market has not executed the Triangle pattern yet, and prices are still below the current levels.
As an alternative, we may consider a reversal Head and Shoulders pattern on RSI; this pattern is also executed by the market. However, the pattern is still lacking the right shoulder, which means the price is moving to $6,875, where the pattern will potentially be completed.
The reversal may also be confirmed by a breakaway of the resistance line and closing above $9,800.
On H4, BTC/USD has returned to testing the support area after a small bounce. The current structure looks like a Descending Flag.
After a breakaway of the lower border of the channel and the price closing under $7,630 the pattern is expected to be complete, and the quotations are expected to fall to $6,875.
A breakthrough of this level is likely to be followed by a decline to $5,750. The fall of RSI below the support line is already pointing at a high possibility of further decline of the BTC.
The scenario may no longer be valid in the case of strong growth above the upper border of the descending channel and securing above $9,190. In this case, we may expect the price to move to $9,800.
Bears have managed to provoke another bounce off the Moving Averages, which is still pointing at the presence of the sellers on the market, regardless of the attempt of growth seen by the investors last week.
In the previous review, we have pointed at the Head and Shoulders, potentially forming on the RSI and suggesting a decline.
Currently, this pattern is almost complete, and there is a high probability of falling from the current price levels with the first aim near $146.35.
The negative scenario may be canceled if the asset breaks through $240.00, which will mean an escape from the channel, followed by a movement to $280.60.
On smaller timeframes, the quotations also seem likely to fall to $146.35. They might as well test even the area around $120.00, where the lower border of the descending channel is situated.
Such a scenario may be confirmed by a reversal pattern forming on the RSI. As we see, it is a second pattern forming on the Ethreum chart, which might be a strong signal of falling.
This idea might be confirmed by a breakaway of the lower border of the ascending channel and securing below $150.00.
The scenario may no longer be valid in the case of a breakaway of the upper border of the channel above $220.00.
XRP/USD has managed to rise above the Ichimoku Cloud, which signifies pressure from buyers and a potential reversal of the downtrend.
Here, the reversal Double Bottom pattern is also likely to be completed. With the breakaway of $0.3210, we may expect the confirmation of this idea and further ascending, aiming at $0.3805.
The scenario may be canceled if the quotations fall below $0.2290; in this case, we should expect them to fall to $0.1490.
On H4, XRP has been moving inside an ascending channel since the beginning of October. Presently, the quotations are testing the support area, where the signal lines of the indicator are also situated.
We should expect a bounce off them and further growth with the first aim at $0.3210. The idea might be supported by a breakaway of the upper border of the descending channel securing above $0.3005.
The scenario may no longer be valid in the case of a breakaway of $0.2630, which will mean a breakaway of the lower border of the Cloud and further decline to $0.2290.
On D1, the lines of the Bollinger Bands are narrowing which signifies a decline of volatility; we should soon be seeing a strong movement for a breakaway of the indicator border.
LTC has pushed off the upper border of the indicator and is trying to break through the lower one, which also means pressure from bears.
A continuation of the current downtrend with the first aim at $40.30 looks possible. As yet another confirmation of the idea, we might regard another bounce off the resistance line on RSI.
Also, the reversal Head and Shoulders pattern, not executed by the market yet, should not be forgotten either. This scenario may no longer be valid if $70.00 is broken away.
On H4, the asset is also going down. However, even now the structure does not look very much like a Descending Flag as the pattern is excessively stretched.
We may expect to fall to the lower border of the descending channel but a strong movement even lower is unlikely to follow because RSI is also going to test the support area, which may provoke another attempt of growth.
A price fall may be canceled in the case of strong growth securing above $63.65.
EOS keeps pushing off the signal lines of the Ichimoku indicator, which signifies the presence of sellers on the market.
On the whole, the current descending movement remains rather strong. The nearest aim of the decline might be the area near $2.05.
The decline might be canceled if EOS/USD grows significantly and secures above $4.30, breaking through the upper border of the Ichimoku Cloud and moving to $5.35.
However, right now there are certain risks of falling to $2.05 and then to $1.45.
On the smaller timeframes, the price has shown a good bounce off the important resistance level of $3.30. Also, the sellers have managed to push the price off the borders of the ascending channel.
Further decline aiming at $2.05 is to be expected. A strong signal here is the completion of the Head and Shoulders pattern on RSI.
The negative scenario may no longer be valid in the case of strong growth and securing of the cryptocurrency above $3.65, which will signify an escape from the descending channel.
The weekly Crypto Technical Analysis is provided by Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
Needless to say, all statements and views expressed below 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.