Crypto Price Analysis: Bitcoin Poised for Further Gains

RoboForex’s chief analyst RoboForex Dmitry Gurkovsky explains the possible scenarios for Bitcoin’s price movements and several popular altcoins.

The cryptocurrency market is attempting a rebound. While assets such as Bitcoin and Ethereum appear ready to extend their gains, Litecoin and EOS seem more inclined to test the nearest support again. Only after that might signals for a rise emerge, and another attempt at a substantial uptick in asset prices could be anticipated.

Leading the pack is Ethereum — on the weekly chart a large reversal pattern “Double Bottom” is visible, with potential to move toward the $600 level.

Bitcoin

On the daily chart, Bitcoin’s price again bounced from an important support. Bears failed to break the $10,000 level, which would have pointed to a further drop to $8,000. RSI values also bounced off the support line, suggesting the start of a rise toward the $12,495 level. A breakout of this level would signal continued upside toward $14,230.

A strong signal on the indicator in favor of this scenario would be not merely a bounce off support but a breakout of the downward trend line. This signal would indicate the end of the current bearish correction. If the price breaks below the lower boundary of the rising channel, one should consider a drop toward the $8,790 level.

BTC/USD daily chart from TradingView

On the 4-hour chart, the price has left the bearish channel, though the RSI tests the resistance line. For now, another attempt to fall to $10,540 followed by a move higher cannot be ruled out yet. A strong signal in favor of the continuation of the bullish impulse would be a breakout above the upper boundary of the large downward channel with the price holding above $12,005.

The invalidation would be a breakout of $9,505, which would indicate breaking the lower boundary of the downtrend channel and could provoke accelerated declines. Typically, a breakout of the downward channel to the downside is a very reliable signal for further bearish momentum.

4-hour BTC/USD chart from TradingView

Ethereum

ETH/USD quotes on the daily chart managed to rebound from the lower boundary of the Bollinger Bands, but a break of the middle line has not yet occurred. Such a signal would point to a full resumption of the uptrend.

Here too there remains the potential to complete the ascending pattern “5-0” — only the test of the lower boundary of the rising channel is missing. A strong signal in favor of continued growth would be a breakout of the RSI trend line. The positive scenario could be halted by a break of the support region with the price staying below $250, which would indicate the cancellation of the “5-0” pattern and a continuation of the decline toward $150.

ETH/USD daily chart from TradingView

On smaller timeframes, the price grows within a bearish channel. A breakout above its upper boundary and a close above $415 have not yet occurred, so discussing further gains from current levels would be premature. Moreover, RSI values test the resistance line, which could trigger a drop toward $306, and a breakout of that level would signal a continuation of the decline toward $251.

ETH/USD 4-hour chart from TradingView

Litecoin

Litecoin prices on the daily chart continue to correct within the head-and-shoulders pattern. The target for the decline remains the $38 level. There are no signals for a rise yet. The RSI resistance line has not been breached, and the indicator values have not even attempted to test it.

A break of $38 would point to further declines toward $24. For the upturn to resume, bulls must break out of the descending channel and hold above $60; in that case, a further rise toward $76 could be considered.

LTC/USD daily chart from TradingView

On the 4-hour chart, the quotes are squeezed within a triangle pattern. RSI has bounced off the resistance line, indicating potential for further downside from current levels. A confirmation of decline would be a break below the pattern’s lower boundary with a close below $45. A move above the upper boundary of the descending channel with a close above $51 would invalidate the downside and point to a continuation higher toward $56.

4-hour LTC/USD chart from TradingView

TRON

On the daily chart, TRON’s quotes are correcting but remain within an uptrend channel. There is potential to test its lower boundary at $0.0210 and continue the price rise. An additional signal in favor of this scenario would be a rebound off the RSI support line. The growth scenario could be invalidated by a break of the channel’s lower boundary and prices staying below $0.0170, in which case a drop to $0.0110 could be considered.

TRON/USD daily chart from TradingView

On smaller timeframes, the asset’s price also declines within a descending channel. The potential to drop to $0.0210 remains. A strong signal in favor of this scenario is persistent bounces off the descending trendline on the RSI. The negative variant could be invalidated by a breakout above the upper boundary of the descending channel with prices above $0.0310, which would indicate the end of the decline and the start of a rise toward $0.0360.

TRON/USD hourly chart from TradingView

EOS

EOS on the daily chart continues to test the support area. RSI values have already bounced off the trendline, but no substantial movement upward has yet occurred. Therefore, one should not rule out a deeper decline to $2.49, from which a rise toward $3.17 could be expected. The scenario would be invalidated by a break of the support level with price staying below $2.49, in which case further decline toward $1.40 could be considered.

EOS/USD daily chart from TradingView

On the 4-hour chart, the price is declining within a descending channel, with good chances to see it fall to $2.21. A strong signal in favor of this variant would be a rebound off the RSI trendline. The downside scenario could be invalidated by a breakout above the upper boundary of the descending channel with prices above $3.17, which would indicate the end of the decline and the start of a rise in asset value.

EOS/USD 4-hour chart from TradingView

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