Leading RoboForex analyst Dmitry Gurkovsky explains possible further scenarios for Bitcoin’s price movement and several popular altcoins from RoboForex.
Prices of popular cryptocurrencies have again moved into downward corrections. But already on the daily charts of Bitcoin and Ethereum, bullish patterns are forming, indicating a likelihood of an upward breakout.
Before these patterns are fully formed there is room for one more move downward. Therefore one should not rule out an even deeper drop before the next upturn.
On weekly charts Bitcoin and Ethereum have already formed large patterns in favour of a strong rally. The current decline, however, may be only a classic test of the upper bounds, after which the rise will continue.
Bitcoin
On the daily chart of Bitcoin there is a breakout of the lower boundary of the “triangle”. There are good chances to see quotes fall to the levels of $8,800 and $8,000. Near these levels there will be potential to complete the formation of the bullish “5-0” pattern. Its completion implies a rise in the cryptocurrency’s value to a local maximum.
A strong signal in favor of the scenario of price growth would be a breakout of the downward trendline on the RSI indicator. The described scenario will be negated by a break of $6,300, in which case one should consider a decline to around $3,895 and lower.
Daily BTC/USD chart from TradingView.
On the 4-hour chart the price is again trapped within the “Triangle” pattern. Do not rule out a break of the lower boundary of the pattern and a further decline to the level of $8,815. An additional signal in favor of this scenario would be a rebound from the RSI’s resistance line.
Confirmation of the downside movement would be a break of the support area with the price holding below $9,750. The negation of the described bearish scenario would be a break above the upper boundary of the downtrend channel with prices above $10,705. In this case, a continuation of the rise to $12,495 could be considered.
4-hour chart BTC/USD from TradingView.
Ethereum
ETH/USD on the daily chart showed a strong decline. However, there is potential here for forming a bullish “5-0” pattern. In this case, a test of the lower boundary of the upward channel at $299 is expected, followed by a move up to $500.
A strong signal in favor of the price rise would be a breakout of the downward trendline on the RSI indicator. The negation of this scenario and the beginning of the bullish pattern’s development would be a break of the lower boundary of the upward channel with the asset’s price below $245. After this, one can consider a continuation of the decline to the $150 level.
Daily ETH/USD chart from TradingView.
On smaller timeframes the price is confined within a triangle pattern, although quotes have already left the upward channel. There is a risk of a continued decline to the $250 level.
Confirmation of the decline would be a break of the lower boundary of the pattern with prices below $302. An additional signal in favor of this scenario would be a rebound from the upper boundary of the downward channel.
An override of this scenario could be a break above the triangle’s upper boundary with prices above $375. In that case one can expect continued growth.
4-hour chart ETH/USD from TradingView.
Litecoin
Litecoin prices on the daily chart have moved into the reversal pattern “Head and Shoulders”. The target for the decline is the $38 level, where an important support area lies. Its break would indicate the continuation of the decline to $25.
A strong signal for a rise would be the breakout of the downward trendline on the RSI indicator, which would indicate the end of the current downward impulse and the start of a rise to $69.
Daily LTC/USD chart from TradingView.
On the 4-hour chart quotes bounce off the $45 support level. Here a “Triangle” pattern is forming, a break below which would point to further declines toward $39. An additional signal in favor of a decline would be a bounce from the upper boundary of the downward channel.
An override of this scenario would be a break above the upper boundary of the downward channel with prices above $50. After that one can expect continued growth toward $65.
4-hour chart LTC/USD from TradingView.
Bitcoin Cash
On the daily chart Bitcoin Cash quotes have again moved to the lower boundary of the sideways corridor. Buyers confidently broke it upward, but bulls did not have the strength for further movement.
The current price action structure strongly resembles forming a reversal pattern “Head and Shoulders”. At the moment, consider a bounce to the upside toward $268. If this region is broken, one can expect a continuation of the rise toward $338, which would indicate the reversal pattern is invalidated and price growth continues.
An additional signal in favor of growth from current levels is also the test of the RSI trend line. The negation of the bullish scenario would be a break of $203, which would indicate a decline to $139.
Daily BCH/USD chart from TradingView.
EOS
The EOS crypto asset is testing the support level and the lower boundary of the ascending channel. There was potential for forming a reversal pattern “Head and Shoulders”, but sellers are not rushing to implement it.
Moreover, there was a bounce off the RSI support line, suggesting an attempt to reverse and begin moving price upward toward $3.95. The negation of the rise could be a break of the lower boundary of the ascending channel with price below $2.20, in which case a continuation of declines toward $1.40 could be considered.
Daily EOS/USD chart from TradingView.
On the 4-hour chart the price is falling within a downward channel. Expect the decline to end with a breakout of its upper boundary and a hold above $3.17.
The upside scenario would be negated by a breakout below the $2.45 level, in which case further decline could be considered.
4-hour chart EOS/USD from TradingView.
Subscribe to ForkLog news on Telegram: ForkLog FEED — all the news, ForkLog — the most important news and polls.