Crypto price analysis: prices remain range-bound

Leading RoboForex analyst Dmitry Gurkovsky explains the potential trajectories for Bitcoin’s price and several popular altcoins.

The cryptocurrency market continues to move sideways. Many assets are trapped between resistance and support levels, and this uncertainty will persist until a breakout occurs.

On shorter timeframes, Chainlink, Ethereum, Litecoin and XRP are already forming reversal patterns in favour of gains. To complete the patterns, the market may yet make one more small dip downward, from which the start of a new wave of growth could be expected.

The key support level for Bitcoin is $10,000. If buyers fail to hold this level, the downside target would be $8,000.

Bitcoin

On the daily chart, BTC quotes remain above the support area, but a break of $11,200 has not yet occurred. The price is between key levels, with neither buyers nor sellers having enough momentum to leave the range.

A breakout above $11,200 would signal a continuation of the rise toward $12,495 and higher. If sellers manage to push through the $10,000 level, a drop to $8,000 is possible within the bullish ‘5-0’ pattern. That pattern envisions a rebound off the lower boundary of the uptrend channel and a continuation of the rise.

Daily chart BTC/USD from TradingView.

On the 4-hour chart, quotes breached the neckline of the reversal pattern “Inverted Head and Shoulders”. However, to confirm the upward movement, it is also important to see a breakout above the nearest high with a close above $11,200. In that case, one can speak of the start of the upside movement toward above $13,500.

4-hour chart BTC/USD from TradingView.

Ethereum

ETH/USD quotes on the daily chart continue to rebound from the middle line of the Bollinger Bands, signaling selling pressure on the asset.

The potential to finish forming the bullish ‘5-0’ pattern remains. However, the RSI trend line has not yet been breached — such a signal would further support a rise in prices.

For buyers, it is crucial to break through the nearest resistance and settle above $397. An negation of the scenario could be a break below the lower boundary of the rising channel with price staying below $250. In that case, one should not expect the ‘5-0’ pattern to play out, as the priority would be a further decline toward $150.

Daily chart ETH/USD from TradingView.

On smaller timeframes, the price breached the descending trend line, and its current movement structure remains a reversal pattern “Double Bottom”.

A break of the trend line is the first signal of a potential start of price growth as part of the reversal pattern. Additional signal would be a break of the RSI trend line. As confirmation, it is important to see the price hold above $397.

If bears manage to push the price down and hold below $306, the scenario of forming the pattern could be cancelled, and the price could continue to fall toward $250.

4-hour chart ETH/USD from TradingView.

Litecoin

Litecoin’s daily chart prices rebound from the support area. The RSI downtrend line has also been breached. There is a high potential for breaking the same line on the price chart.

The growth target is $52. The risks of forming a reversal pattern “Head and Shoulders” also persist, so buyers should avoid breaking the support area and holding below $38. Such a scenario would indicate a continued decline toward $25.

A strong signal for a full-blown upward movement would be a breakout above the upper boundary of the down channel with a close above $70.

Daily chart LTC/USD from TradingView.

XRP

The daily chart quotes for XRP rebound from the support area. However the price has not fallen far enough yet to complete the reversal pattern “Inverted Head and Shoulders”. The break of the RSI downtrend line also points to potential further price growth toward $0.30. Confirmation would be a break above the upper Bollinger Band with a close above $0.26.

Its negation could be a crossing of the quotes into the support area and their close below $0.2180, which would trigger further declines toward $0.1675.

Daily chart XRP/USD from TradingView.

Chainlink

Chainlink’s daily-chart quotes move within a downward correction. However, a break of the RSI trend line has already occurred. There are strong odds of finishing the decline and beginning a rise.

A strong signal in favour of this scenario would be a breakout above the upper boundary of the downtrend channel with a close above $13.60. In that case, consider a move toward $17.85.

A negation of the bullish scenario could be the break below the lower boundary of the rising channel with a close below $5, which would indicate a continuation of the decline toward $1.25.

Daily chart LINK/USD from TradingView.

On shorter timeframes, Chainlink’s quotes are falling within a bear channel. There is potential for forming a reversal pattern “Head and Shoulders” provided the price tests the $8.42 level and bounces off it.

A confirmation of an upward move would be a breakout of the resistance area with a close above $11.20. This would indicate the breaking of the upper boundary of the downtrend channel and the further development of an upward movement toward $13.60 and higher.

A negation of the bullish scenario could be a break of the local minimum with a close below $7.25. This would indicate the end of the reversal pattern and a continuation of the decline in the asset’s price.

4-hour chart LINK/USD from TradingView.

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