Dmitry Gurkovsky, leading analyst of RoboForex, tells about further possible scenarios for the movement of the price of Bitcoin and several popular altcoins.

The cryptocurrency market continues to trade near the local maximum area. However, a reluctance to move higher and break through important resistance levels may indicate the beginning of a downward correction. In the case of continued growth and updating of the highs, we can safely talk about the resumption of the qualitative upward trend. Experts of one of the leading cryptocurrency exchanges Binance concluded that the market probably reached the bottom. Such a study was based on an analysis of data for 2014–2019. At the same time, CME data show a decline in interest and investor involvement in Bitcoin futures.

Bitcoin

Technical analysis of the daily Bitcoin chart indicates the proximity of an important resistance level of $ 6000. Moreover, here is the upper limit of the long-term descending channel. BTC / USD quotes continue to move in the upward correction. In the case of continued growth and breakdown of the upper boundary of the channel, we should expect the resumption of a full-fledged upward movement. The values of the relative strength indicator (RSI) also show a rebound from the support line. This still indicates the presence of an upward impulse. As part of the likely forecast of the cryptocurrency rate, a slight correction to the lower boundary of the channel is expected and growth will continue. The breakdown of the support area and the closing below the level of $ 4,450. Will indicate a resumption of the decline.

Technical analysis of the course of a digital asset on a 4-hour chart indicates the formation of the Triangle model. We should expect an attempt to reduce and test the lower limit of the model near $ 5025. Further, in the case of the breakdown of the upper limit of the model and closure above $ 5465. Expect continued growth with a potential target of $ 5,700. An additional signal here is the test of the support line on the relative strength indicator (RSI). The cancellation of the growth development option will be the breakdown of the lower boundary of the Triangle model and the closure below the $ 4,770 level. That would indicate a quotes out of the model and a potential decline in the $ 4,200 area.

EOS

EOS cryptocurrency continues to move in the ascending channel. Quotes are trading at $ 5.49. As part of the technical analysis of the daily chart of the EOS rate, we should expect an attempt to decrease and test the lower boundary of the channel near the $ 4.80 area. Further, continued growth with a potential goal of $ 7.00. An additional signal in favor of this movement will be a test of the rising trend line on the relative strength indicator (RSI). As you can see, the indicator values are still located above the line, which indicates a potential continuation of growth. The closest resistance area for EOS is at $ 7.00. Breakdown of this level will indicate confirmation of a rise in quotes. An important support area is located near $ 4.75. Cancellation of the upward trend development will be the breakdown of the support area and closing below $ 4.75. That will indicate breakdown of the lower boundary of the channel and the continuation of the decline to the next level near $ 3.15.

Technical analysis of the course of the digital asset EOS on the four-hour chart indicates the continuation of the formation of the model "Triangle". In the short-term version, we should expect an attempt to test the lower limit of the model near $ 5.15. Next – the continuation of growth with a potential goal of $ 6.95. An additional signal in favor of this option will be the breakdown of the resistance line on the relative strength indicator (RSI). The closest resistance area for EOS is at $ 6.10. Breakdown of this level will indicate confirmation of a rise in quotes. An important support area is located near $ 5.00. The cancellation of the growth development option will be the breakdown of the lower boundary of the Triangle model and the closure below $ 4.95. This will indicate a potential decline of $ 4.55.

Ethereum

Cryptocurrency Ethereum continues to move within the framework of the correction and is currently testing the level of $ 166.00. As part of the technical analysis of the Ethereum rate on the daily chart, we can expect an attempt at a minor correction and a test of the lower boundary of the rising channel near $ 145.00. Next – the continuation of growth with a potential goal of $ 220.00. Here is the area of resistance, as well as the upper boundary of the channel. An additional signal in favor of this movement will be another test of the rising trend line on the relative strength indicator (RSI).

Technical analysis of the course of the digital asset Ethereum on the four-hour chart makes it difficult to try to lower and also test the lower boundary of the channel. In the short term, we should expect a rebound from the level of support near $ 155.00. Further, continued growth with a potential goal of $ 190.00. An additional signal in favor of such growth will be the test of the support line on the relative strength indicator (RSI). The closest resistance area for Ethereum is at $ 190.00. A breakout of this level will indicate confirmation of a rise in ETH / USD quotes. Moreover, it will indicate a breakdown of the upper boundary of the rising channel. What will be a strong signal in favor of purchases of a digital asset. An important support area is located near $ 150.00. Cancellation of the upward trend development will be the breakdown of the support area and closing below $ 145.00. That will indicate the breakdown of the lower boundary of the channel and the continuation of the fall with the goal below $ 125.00.

Litecoin

Cryptocurrency Litecoin continues to move in the downward correction. However, the lower boundary of the ascending channel has not yet been broken. Quotes are trading at $ 79.39. As part of the technical analysis of the Litecoin digital asset rate on the daily chart, we can expect an attempt to continue the correction and test the lower boundary of the channel near $ 70.55. Further, continued growth with a potential goal of $ 100.00. An additional signal in favor of growth will be the support line test on the relative strength indicator (RSI). The closest resistance area for Litecoin is at $ 95.00. Breakdown of this level will indicate confirmation of a rise in quotes. An important support area is located near $ 70.55. Cancellation of the upward trend development will be the breakdown of the lower boundary of the ascending channel and closing below the level of $ 68.00. That will indicate a continuation of the fall to the next support level near $ 53.45.

A technical analysis of the Litecoin digital asset rate on a four-hour chart indicates the movement of an asset within a descending channel. In the short-term version, we should expect an attempt to reduce and test the lower limit of the model near the $ 70.00 area. Further, continued growth with a potential goal of $ 100.00. An additional signal in favor of such growth will be a rebound from the support area on the relative strength indicator (RSI). The second signal will be the breakdown of the upper boundary of the downward channel and the closure above $ 85.00.

Bitcoin Cash

Cryptocurrency Bitcoin Cash continues to move in the ascending channel. Quotes are trading at $ 308.75. Technical analysis of the daily chart indicates the development of the correction with a test of the lower boundary of the channel near the $ 275.00 area. Further, continued growth with a potential goal of $ 400.00. An additional signal in favor of this movement will be a test of the rising trend line on the relative strength indicator (RSI). As you can see, the third test of this support line on the indicator will take place. Cancellation of the upward trend development will be the breakdown of the lower boundary of the ascending channel and closing below the level of $ 235.00. That will indicate breakdown of the lower boundary of the channel and the continuation of the decline in the Bitcoin Cash rate to the level of $ 177.00.

Technical analysis of the digital asset rate on a four-hour chart indicates a potential decline from current levels. In the short term, we should expect an attempt to fall and a test of the support level near $ 255.00. Next is the continuation of growth with a potential goal of $ 400.00. An additional signal in favor of such growth will be the test of support area on the relative strength indicator (RSI). A strong signal for the continuation of the rise will be the breakdown of the upper boundary of the downward channel and closing above $ 345.00. Cancellation of the growth option will be the fall and the breakdown of the support level of $ 255.00.

Attention!
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 occur when using trading recommendations from the submitted reviews.

Subscribe to the BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.