Cryptocurrency price analysis: bitcoin is ready for growth, which can not be said about altcoins

RoboForex lead analyst Dmitry Gurkovsky talks about further possible scenarios of the price movement of bitcoin and several popular altcoins.

The leading digital asset continues to trade above the support level of $ 9,100 – buyers manage to maintain an advantage. To confirm the upward movement, it is important to see the breakdown of the upper boundary of the Triangle model and consolidation above $ 12,385. In this case, the levels of $ 15,000 and $ 16,000 will become easily reachable in the short term.

Moreover, technical analysis most likely indicates further growth as the main option for bitcoin. However, in the case of a negative scenario, a breakdown of the lower border will provoke a fall to the level of $ 7200. This will send all altcoins even deeper down.

Litecoin and Bitcoin Cash, meanwhile, are ready for a strong decline in the reversal patterns. Thus, BTC, ETH and EOS as a whole are preparing for growth, even after correction, but this can not be said about the rest of the assets.

Bitcoin

BTC quotes continue to be adjusted within the Triangle model. Once again, a test of the moving averages area took place, and at the moment we are seeing a rebound.

This still indicates the strength of the bulls that hold the key support area – $ 9100. As the main trading idea, we should expect a test of the lower boundary of the model and an attempt to move up to the first target at the level of $ 13,900. A test of the support line on the RSI indicator will favor this scenario.

A confirmation of the development of the upward trend will be a breakdown of the upper boundary of the Triangle model and consolidation above the level of $ 12,385. Cancellation of the option may be a fall and a breakdown of the level of $ 9115, which will indicate going beyond the model and the beginning of the decline to the level of $ 7200.

On the 4-hour chart, the leading digital asset continues to move within the downward channel. Do not exclude another attempt to fall and test the level of $ 9550 before the start of growth. An additional signal in favor of an upward bounce here will be a test of the lower boundary of the downward channel on the RSI.

As you can see, previously such a test provoked a strong growth rate. As confirmation of the development of the rise, there will be a breakdown of the resistance level by $ 11,005. However, to a full return to the bullish trend, we can only speak with a breakdown of the upper boundary of the downward channel. The cancellation of the scenario will be a decrease and a breakdown of the level of $ 9115, which will indicate a continuation of the correction to the lower border of the downward channel.

Ethereum

Leading altcoin ETH is still testing the area at $ 190, as well as the lower border of the upward channel. Quotes start from a downtrend, which indicates a potential continuation of the decline with the test support level of $ 145. However, already at the time of testing the indicated area, there may appear potential for the formation of an upward “Wolfe Wave” model, the level of $ 275 will be the purpose of growth and development. Therefore, a possible fall should not be taken as another “collapse” of the market, but rather as a good opportunity for a potential rebound and a new wave of growth. A confirmation of the beginning of the upward movement will be a breakdown of the downward trend line. Cancellation of the positive option will be a breakdown of the level of $ 120, which will indicate a continued decline to $ 91.95.

The 4-hour chart of the asset is clamped in the framework of the “Wedge” model – in most cases this pattern is a reversal pattern. However, here, too, another drop to the target by $ 146 is not enough, after which it will be possible to talk about the beginning of growth. An additional signal in favor of completing the formation of the model is another rebound from the resistance line at RSI. As you can see, the beginning of growth occurs when the indicator falls slightly lower, therefore, it is still premature to expect the beginning of upward movement from current levels. Cancellation of the option with a rise will be fixing quotes below the level of $ 145, which will indicate a breakdown of the lower boundary of the model and a continued decline.

Eos

On the daily chart, asset quotes came close to the lower boundary of the ascending channel. However, the values of the RSI indicator have not yet tested the support line to talk about the beginning of growth from current levels. As the main trading idea, it is expected to fall to the level of $ 2.15, where the potential for growth will arise. In favor of such a scenario, the formation of the upward Wolfe Wave model, which will give the potential for upward movement, to the level of $ 5.00, is in favor. Confirmation of growth will be a breakdown of the upper boundary of the downward channel. Cancellation of the described scenario will be a fall below the level of $ 2.15, which will indicate a decrease to the level of $ 1.45.

On a 4-hour chart, EOS continues to move near the lows. Here we also see the potential for continued fall with a target of $ 2.15. The values of the RSI indicator are constantly repelled by the downward resistance line, which indicates strong pressure from the sellers.

Do not exclude an attempt to test the upper border of the downward channel near $ 4.00 and continue to decline. Cancellation of the option will be the growth and breakdown of the level of $ 4.85, which will indicate going beyond the channel and the beginning of the rise in quotes.

Litecoin

LTC is still under pressure from the formed head and shoulders reversal pattern. As you can see, the quotes “failed” below the level of $ 75, which indicates a breakdown of the “Neck” line and a high probability of continued fall with the target below $ 40. A confirmation of the development of the downward movement will be a breakdown of the lower boundary of the ascending channel and consolidation below $ 65. Cancellation of the negative scenario will be a strong growth with a breakdown of the level of $ 107.80, which will confirm a change in trend in favor of the upward trend, when a local maximum test can be expected.

On the 4-hour chart, quotes were able to gain a foothold under the “Neck” line, which now acts as a serious resistance level. The next target of the fall are the levels of $ 65 and $ 55. In favor of such a fall, there is also a rebound from the resistance line on the RSI indicator. Cancellation of the negative scenario may be a strong growth and breakdown of the upper boundary of the downward channel, which will lead to the return of buyers to the market and a possible test of the area of $ 107.80.

Bitcoin cash

Bitcoin Cash is still being traded as part of the formation of the head and shoulders reversal pattern on the daily chart. There is a high potential for further decline with a target below the level of $ 177. In favor of such a negative scenario, another rebound from the resistance line on the RSI indicator is also in favor. Confirmation of the downward movement will be a breakdown of the level of $ 248.45, which is the Neck line, and the completion of the formation of the model. Cancellation of the option to reduce will be a strong growth and a breakdown of the level of $ 400, which will indicate a breakdown in the level of formation of the right "Shoulder" and the continued rise in quotations.

At shallow time intervals, the digital asset is reduced in the downward channel. The RSI values are “clamped” in the framework of the “Triangle” model, so we can expect a strong movement at the moment of breaking the boundary of this model.

As a short-term scenario, a drop to the support level by $ 248.45 is possible, a breakdown of which will send the price even lower – to the area of $ 177.35. The cancellation of this movement will be a breakdown of the upper boundary of the downward channel and the consolidation of quotes above the level of $ 355, which will indicate a potential continued growth to the target by $ 457.10.

At the time of writing, the market situation is as follows.

Attention!
Forecasts of financial markets are the private opinion of their authors. Current analysis is not a guide to trade. RoboForex is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.

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