Further possible scenarios of the price movement of bitcoin and several popular altcoins are described RoboForex lead analyst Dmitry Gurkovsky.
- The cryptocurrency market remains under controlsellers - all assets went to update the nearest lows. However, the Klin reversal model is already being formed on the daily chart of bitcoin, which may well become the basis for a reversal and growth attempt in the near future. Bulls need to gain a foothold above the level of $ 7670, which will be a confirmation signal in favor of continuing the upward trend.
- Similar patterns are formed on digital assets such as Ethereum, Litecoin and Bitcoin Cash. An important factor here will be the growth of bitcoin, which will already “pull” the rest of the market.
- From the point of view of technical analysis, the XRP chart does not contain the prerequisites for the start of a reversal.
Quotes continue to decline. Buyers have not worked out the “Failed Swing” reversal pattern on the RSI indicator. However, already now we are witnessing an attempt to form a “Wedge” model, which may ultimately provoke growth towards the target at the level of $ 9800. An additional signal in favor of this scenario will be a test of the support line on RSI.
Previously, a similar test caused a slight increase, inthe current situation with the formation of a reversal pattern may begin a reversal of the downward trend. A confirmation will be a breakdown of the upper boundary of the Klin model and consolidation above the level of $ 7670. Cancellation of the scenario will be a fall below the area of $ 4375, which will indicate the abolition of the formation of the model and continued decline.
On the 4-hour chart, there is potential forthe formation of the bull model “Wolfe Wave”. The lower border of the model is located near the $ 5890 mark. Expect a test of this level before the start of growth. RSI values are above the support level, so it is important to see the test of this line before the start of growth. In the case of consolidation below the level of $ 5890, a further decline is expected.
On the daily chart, the asset continues to fall,sellers at the moment managed to gain a foothold under the support level. The nearest area to bounce up is at $ 100. Moving averages still indicate a bearish trend.
Talk about the reversal of the current movement is withbreakdown of the upper boundary of the downward channel and fixing quotes above the level of $ 200. In favor of a probable bounce from the $ 100 level, a test of the trend line at RSI also appears. In case of breakdown of the support area and consolidation below $ 100, we should expect a continuation of the downward trend.
At smaller time intervals continuesa bullish “Wolfe Wave” pattern is forming, which implies a price increase above the level of $ 157. Although the model looks aggressive against the current trend, it is quite capable of helping the bulls stop the fall.
An additional signal in favor of a price increasesupports test line support for RSI. This scenario will be confirmed by a breakdown of the upper boundary of the Wolfe Wave model with price fixing above the level of $ 140. Cancellation of this option will be a breakdown of the level of $ 100.
XRP / USD quotes broke through the support area. At the time of the last test of the upper border of the Bollinger Bands indicator, the price pushed off and broke through the lower border, which indicates the presence of a strong downward impulse. However, RSI values immediately met support in the form of a trend line. Expect a slight drop with the test area of $ 0.1485 and the beginning of growth.
About a full U-turn, it’s worth talking only withbreakdown of the upper boundary of the downward channel and price fixing above the level of $ 0.2740. Cancellation of the option with growth may be a breakdown of the lower boundary of the downward channel and consolidation below the level of $ 0.1000, which will provoke an acceleration of the fall.
On the hourly chart, quotes are falling withindownstream channel. Here there is every chance to see a test of the lower border of the channel near the level of $ 0.1600, after which we can expect the development of an upward correction. In favor of a short-term fall, a test of a downward trend line at RSI will come out. As soon as the bulls manage to gain a foothold above the level of $ 0.2290, it is worth waiting for the development of an upward impulse.
Litecoin quotes continue to develop a strong downward movement on the daily chart. However, now, despite the pressure from the bears, there is potential for a rebound and the beginning of growth.
RSI values are testing the support line again. Do not rule out a fall with the test area of $ 42 and attempts to move up. Confirmation of growth will be a breakdown of the level of $ 50, which will indicate the exit of quotes beyond the downward channel. In the case of a further fall and breakdown of the region of $ 30, we expect the formation of a downward impulse.
A bullish pattern is forming on the 4-hour chart"Wolfe Wave", which indicates the growth potential to the target at $ 50. A strong signal in favor of this scenario is a rebound from the support line on the RSI. A confirmation of the growth will be a breakdown of the upper boundary of the model and consolidation above the level of $ 42. Cancellation of this option will be a breakdown of the $ 30 area, which will indicate the cancellation of the model and the continuation of the downward movement.
On the daily chart, the price is clamped within the boundaries of the model"Wedge". The support line on the RSI is located quite close, which portends a fall in prices to the level of $ 160, followed by the beginning of growth. A confirmation of the rise will be a breakdown of the upper boundary of the Ichimoku Kinko Hyo Indicator Cloud. The cancellation of the described option will be the breakdown of the area of about $ 160, which will indicate the abolition of the "Wedge" model and the continuation of the fall.
At smaller time intervals, the price was able to break through the support area. At the moment, there are prerequisites to see the test area of $ 160 before the start of growth.
An additional signal in favor of the probablethe rebound will perform a support line test on the RSI. Confirmation of the reversal will be a strong price increase with a breakdown level of $ 195, which will indicate the exit of quotations beyond the downward channel.
Financial market forecasts are privateopinion 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.