Analysis of cryptocurrency prices: this time the lows stood
Dmitry Gurkovsky, leading analyst of RoboForex, tells about further possible scenarios for the movement of the price of bitcoin and several popular altcoins.
Last week, the market was falling to local minima, trying to continue the long-term downtrend. But, apparently, the support from the buyers at the minimum was quite strong, which at the moment may allow the market to go into a correction.
This situation is typical for almost all cryptocurrencies. Summarizing analytical observations, we can say that in the short term, the market will continue to move upwards in the correctional corridor. But the long-term outlook remains downward, although a number of cryptoactive assets are already very close to their bottom.
The BTC daily timeframe demonstrates the development of a downward impulse to the support line of the main long-term channel – the mark of $ 2455. It should be noted that Stochastic remains in the oversold zone, which, on the one hand, indicates a continuation of a steady decline, and on the other hand, a pullback approach. The formation of convergence on MACD is also observed.
On the 4-hour chart, it is worth considering the evolving correction within the downward corridor. Testing the support line is likely to end with a rebound and resistance breakdown. The local growth target after the breakdown will be the level of resistance of the medium-term order – $ 3808. Further quotes can go to the line of resistance of the emerging growth channel – the mark of $ 4020. At the same time, without excluding the possibility of a breakdown of the support level at $ 3,392, it is necessary to consider the option of developing another impulse to reduce to the psychologically important level of $ 3,000, and with its breakdown – to $ 2,530. The “Black Cross” on the Stochastic indicator will be a confirmation signal for the decline.
If we consider the 1-hour timeframe of BTC from the point of view of technical analysis, then first of all, we note the formation of “Golden Crosses” on the indicators of Stochastic and MACD. This picture may be a confirmation of the hypothesis of the formation of a short-term correctional growth phase, the nearest target level of which is in the region of $ 3,800.
The technical picture of the 4-hour EOS timeframe shows the breakdown of the resistance line of the downward channel with the movement of quotations to the upper projection channel, and the formation of a correction trend. A hint about the possibility of a correction earlier was the formation of convergence on the MACD. In addition, the output of Stochastic from the oversold zone is also evidence of growth. The main goal of the correction is to consider the resistance line of the projection corridor – the level of $ 2.4300. From this level, you can expect a rebound and a decline to parity.
When considering the EOS chart on the 1-hour timeframe, we can see that the quotes tested the support line in the region of $ 1.8415. At the same time, Stochastic is in the oversold zone, at the exit of which the Golden Cross will be formed, giving an additional signal to growth.
Considering the dynamics of Ethereum on the 4-hour chart, we note that the quotes are within the descending channel. At the same time, the MACD histogram went into the positive area, and Stochastic went out of the “oversold” zone. Together, these factors indicate a possible development of a correction trend in growth. But the main supporting signal should be the breakdown of the resistance line at $ 96.00. The growth target will be the projection channel resistance level at $ 110.00. In spite of everything, it is also important to consider the option of breaking through local support and continuing the development of the main trend to the level of $ 60.00.
Ethereum's 1-hour timeframe confirms the general mood of a larger scale. It is worth noting the formation of the "Golden Crosses" on the indicators Stochastic and MACD. This circumstance indicates a high probability of breakdown of resistance in the region of $ 96.00 and subsequent growth in the area of resistance of $ 106.70- $ 110.00.
When looking at the technical picture of the XLM on the 4-hour chart, we see that the cryptocurrency quotes have overcome the resistance line of the medium-term downward channel and are trying to break the resistance of the short-term one. Current resistance is at $ 0.1183. Overcoming this level will signal the further development of corrective growth to the main resistance line – the level of $ 0.1430. Previously, we could observe the formation of convergence on the MACD and Stochastic indicators, which warned of a rollback.
On the 1-hour XLM chart, a more detailed picture of the development of a corrective uptrend can be observed. On the MACD and Stochastic indicators, the formation of additional signals is expected – Golden Crosses. Breakdown of local resistance at $ 0.1183 is also expected. Assuming the possibility of overcoming support, as a goal of reducing it is worth considering the level of $ 0.0920.
The 4-hour XRP chart shows a downward trend approaching the main channel support line. In this case, the rebound of the downward dynamics from the support of the medium-term channel may mean the development of a correction phase. The “Golden Crosses” on the MACD and Stochastic indicators serve as indirect signals for this. The main confirmation of the growth hypothesis will be the breakdown of the resistance level at $ 0.3183. This can open up the quotes for the way to the upper projection channel for growth to the target at $ 0.3560. But if the resistance level stands, the quotes will go to the assault of support, the breakdown of which may lead to a decrease to $ 0.2290.
When considering the 1-hour XRP timeframe, we see that Golden Crosses are formed on the MACD and Stochastic indicators, which can mean the further development of the corrective trend. Primary support is at $ 0.2818.
Forecasts of financial markets are the private opinion of their authors. Current analysis is not a guide to trading. RoboForex is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.
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