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

The market continued to move in the framework of the negative scenario and at the moment the best that can happen is a correction before the next wave of decline. For Bitcoin, the lower boundary of the Triangle model will be a strong area of resistance – until it is broken, you should not expect upward movement.

On the other hand, Ethereum and EOS look quite interesting for growth as part of the development of upstream models on the daily charts. Important support levels for them have not yet been broken, which leaves a chance for an upward movement.

Litecoin and Bitcoin Cash may begin to decline as part of reversal models that have been formed for a long time, but the market did not dare to work out such patterns.

Bitcoin

The leading cryptocurrency was still able to leave the Triangle model, however, the breakdown took place down instead of the expected rebound and the beginning of growth. At the moment, as the main option, we should expect an attempt to further refine the model down.

The first target of the fall may be the lower border of the rising channel at the level of $ 7030, after the breakdown of which the next support will be the area below $ 5720. A rebound from the resistance line on the RSI indicator speaks in favor of long-range downward movement. The indicator values broke through region 30, which indicates the presence of a strong bearish impulse. As a rule, a signal for growth should be considered only after a return above level 30.

BTC / USD , TradingView data

At the same time, one should not exclude attempts at correction with a test of the broken border of the model, and only after that – continued development of the downward movement. Cancellation of the option with a decrease here may be strong growth and a breakdown of the level of $ 10,995, which will indicate the return of strong buyers and a potential reversal in favor of an upward trend.

A technical analysis of smaller time periods also indicates the development of an early correction to the resistance level of $ 9190, where the lower boundary of the Triangle model is located. In favor of the correction, a test of the support area on the RSI indicator is in favor, a rebound from which we saw earlier.

Most likely, the test of the resistance level will not become a reversal for new growth, but will lead to a movement even lower – to the level of $ 7200. Cancellation of the negative scenario will be a strong growth and a breakdown of the upper border of the downward channel with fixing quotes above the level of $ 9800. Only in this case it is worth returning to the option with the continuation of the rise. In the meantime, the leading asset remains under strong pressure from the bears.

Ethereum

In the case of Ethereum, one should not exclude the possibility of the formation of a bullish “Wolfe Wave” model, which will indicate the potential for continued growth to the level of $ 280.60. The lower boundary of this model remained unbroken, which means that the chances of a rebound and upward movement remain. In favor of this rise, the test of the ascending trend line at RSI may be in favor. Earlier, we already observed a rebound in asset quotes from the level of $ 170 to $ 225. Cancellation of the positive option on the daily chart will be a breakdown of the level of $ 125. In this case, the target of the reduction may be the area of $ 75.

ETH / USD , TradingView data

On the 4-hour chart, quotes are also just testing the support area and the broken border of the Wedge model. Do not exclude an attempt to grow cryptocurrency from current levels. An additional signal in favor of such a movement is a rebound from the support line on the RSI. A confirmation of the rise here will be a breakdown of the resistance level and consolidation above $ 185.25. Cancellation of the option with growth will be a strong drop and a breakdown of the $ 145 area. With this development, we should expect a continued decline.

Litecoin

Litecoin quotes continued to move as part of a negative option with the development of the Head and Shoulder model. As you can see, the asset pushed off the resistance level and is currently testing the support area of about $ 55.

It is possible that we can see a correction to the broken border of the upward channel and a continued decline with a target of $ 40. However, a downward price structure around the $ 80 level potentially indicates a probable fall to $ 21.85.

LTC / USD , TradingView data

Cancellation of the scenario with a decrease will be made by strong growth and a breakdown of the level of $ 90, which will indicate the fixation of LTC / USD quotes above the upper border of the Ichimoku Kinko Hyo Indicator Cloud. In this case, we should expect a change in trend in favor of the upward trend and the continuation of the rise to the first target at $ 125.65. Pressure from sellers on the course of "digital silver" is currently maintained.

On the 4-hour chart, asset quotes rested against the lower border of the downward channel. As long as buyers manage to stay higher, there is a high probability of the development of a correction in the range of $ 65 – $ 70. Already from these levels we should expect a continued decline.

In favor of this option, a test of the broken trend line at RSI will come out. However, if the bears manage to gain a foothold under the lower boundary of the channel, this will be a signal in the direction of sales to targets in the range of $ 40 – $ 20, which can be achieved very quickly.

The cancellation of this scenario will be a breakdown of the upper boundary of the downward channel and the consolidation of Litecoin above the level of $ 80, which will indicate a potential continuation of growth to the first target at the level of $ 107.

Eos

The movement structure on the daily chart of EOS coincides with Ethereum. We are witnessing the formation of the ascending Wolfe Wave model. Quotes tested the lower boundary of the model, which indicates a potential rebound and the beginning of upward movement.

An additional signal in favor of such dynamics is the RSI trend line test. The goal of the upturn during the development of the upward model is an area of about $ 5.40. Cancellation of this option may be a fall and a breakdown of the support level with fixing quotes below $ 2.

EOS / USD , TradingView data

On the 4-hour chart, quotes are repelled from the support level, where the lower border of the downward channel is located. As a short-term trading idea, we should expect an attempt to grow to the first target at $ 4.30.

An additional signal here is a strong drop in RSI values. As you can see, earlier prices have already shown growth at the time of testing this area. Breakdown of the upper boundary of the downward channel and consolidation above the level of $ 4.30 will indicate the quotes go beyond it and lead to a full continuation of the rise. Cancellation of the positive option for EOS will be a breakdown of the $ 2.05 area, which will indicate an increase in the bearish trend.

Bitcoin cash

Bitcoin Cash quotes, which moved as part of the formation of the “Head and Shoulders” reversal pattern, can return to the test of the broken “Neck” line of this model and then continue the development of the downward movement. A test of the trend line at RSI also favors a likely correction.

BCH / USD , TradingView data

The next important area of support is the level of $ 177.05, a break of which will indicate a test area of $ 100.65. Cancellation of this option here will be a strong growth with the surf of the upper boundary of the channel and fixing quotes above the level of $ 355.95. In this case, the asset will have a chance to move up.

On the 4-hour chart, we also see strong pressure from sellers. The cryptoactive has left the limits of the Triangle model and is preparing for a correction with a test of the resistance level of $ 245.00 before the next wave of decline. In favor of this scenario, a breakdown of the trend line on the RSI appears, which, if the price returns to it, will act as resistance. Cancellation of this option may be a strong growth and the breakdown of the level of $ 320.00, in which case the growth targets will be the areas around the levels of $ 355.95 and $ 457.10.

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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