Cryptocurrency Price Analysis: Potential for Reduction Remains

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

Cryptocurrencies continue to adjust withoutstrong movements in any direction. Many assets are «squeezed» within the framework of the «Triangle» model, which indicates a maximum reduction in volatility. A breakdown of such a pattern can provoke a strong movement towards a breakout. On the daily charts, there is still potential for a decline in the value of assets. However, to confirm the potential for a downward movement, you should wait for the breakdown of the «Triangles» on small timeframes. After the decline, we should expect the formation of high-quality patterns in favor of growth to new highs.

Bitcoin

BTCUSD quotes on the daily chart push offfrom the next resistance level near the $ 7500 mark. The values ​​of the RSI indicator also came close to the downtrend, which indicates a potential rebound at the time of its test. Therefore, do not exclude the development of growth and the test level of $ 8000, where the upper boundary of the downward channel is located. Only after such a movement can we expect a continuation of the fall in the Bitcoin exchange rate. The target may be the area near the $ 5700 mark and there are risks to see a test of the local minimum at $ 4030. Cancellation of this option will be a breakdown of the upper boundary of the downward channel with price fixing above the level of $ 9,200, in which case we can consider the continuation of the asset rise and a test level of $ 10,635.

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On the 4-hour chart, the asset price remains atwithin the boundaries of the &#171;Triangle&#187;, which reflects a decline in volatility. If the upper boundary of the model breaks through and quotes consolidate above the $7,500 level, we should expect continued growth and a test of $8,320, from where the price may begin to fall. If, from current levels, a breakdown of the lower boundary of the model occurs with the asset value consolidating below the level of $6415, this will trigger a continued decline towards the target at $5710, and then &#8212; for $4975.

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Ethereum

On the daily chart, Ethereum pushes offthe upper border of the indicator Ichimoku Kinko. Buyers managed to get back inside the Indicator Cloud, indicating a sideways movement. Breakdown of the upper boundary of the Cloud and price fixing above the level of $ 200 may provoke continued growth of the asset rate to the upper boundary of the downward channel near the level of $ 240. However, the RSI indicator is testing a downward resistance line, and there are risks to see a drop in quotes in the near future. A confirmation of the decline will be a breakdown of the lower boundary of the Indicator Cloud and price fixing below $ 144, when a decline to $ 98 can be expected.

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At smaller time intervals, the price riseswithin the ascending channel. As soon as the ETHUSD quotes fall below the level of $ 167, we can talk about the beginning of their decline to the level of $ 118 and below. However, before this fall, the price may update the local maximum. The cancellation of the option with a decrease in the value of the asset will be a breakdown of the level of $ 208, in which case we should expect the price to continue to rise to the level of $ 240, where the upper border of the downward channel is located on the daily chart of the asset.

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Litecoin

LTCUSD quotes on the daily timeframepushed off from the upper border of the Bollinger Bands indicator. If the fall continues and the $35 level is broken, we should expect the asset price to continue to decline. The target of such a movement could be the area between the levels of $27 and $16. An additional signal in favor of a potential fall will be a rebound from the resistance line on the RSI indicator. Cancellation of this option could be a breakdown of the upper boundary of the downward channel with the price consolidating above the level of $65, at which it is worth considering the continuation of the rise in quotes to the target at $81, and then &#8212; for $105.

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On the 4-hour chart, the price is moving away fromSliding averages, indicating a continuation of the downward trend. Moreover: a “Head and Shoulders” pattern is being formed, where in the event of a breakdown of support and fixation of quotes below the level of $36, we can expect the model’s target to be reached at the level of $27. A strong signal in favor of the downside option will be a rebound from the trend line on the RSI indicator. The cancellation of the negative scenario will be a strong increase in the value of the asset with the price consolidating above the level of $47, which will indicate a stop in the development of the model and continued growth towards the target at $55.

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Eos

EOS cryptocurrency quotes for the second timerepel from the fast moving average on the daily chart of the asset, which indicates pressure from the sellers. We should expect an attempt to test the upper border of the downward channel and the fall in prices to the levels of $ 1.66 and $ 1.22. A strong signal in favor of this option will be a rebound from the resistance line on the RSI indicator. Cancellation of the negative option for bulls will be a strong growth and a breakdown of the level of $ 3.29, in which case we should expect continued growth to the level of $ 4.72.

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On smaller time periods the price&#171;squeezed&#187; within the framework of the &#171;Triangle&#187; model. In the event of a breakdown of the lower boundary of the model and fixation of quotes below the level of $2.28, we should expect the price of the asset to begin to fall towards the first target at $2.02. An additional signal in favor of such a scenario will be a rebound from the trend line on the RSI indicator. Cancellation of this option may be a breakdown of the upper boundary of the &#171;Triangle&#187; with the price consolidating above the $2.85 level, where the target for growth will be the area around the $3.29 level.

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Bitcoin cash

On the daily chart, the price bounced off the fastMoving average, which demonstrates the strength of the bears. Moreover: there is potential to complete the formation of a downward pattern &#171;5-0&#187; and began working it out. In most cases, after a rebound from the upper boundary of the descending channel, quotes fall to the area of ​​a local minimum. Here this area is within the $136 and $80 levels. Cancellation of the option with the development of a bearish model will be a strong increase in the value of the Bitcoin Cash asset with the price consolidating above the level of $285, which will indicate a continued rise to potential targets near the levels of $450 and $495.

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The price on the 4-hour chart is moving withinformation of a reversal pattern &#171;Head and Shoulders&#187;. The target for executing the model is the area around the $136 level. Confirmation of the fall will be a breakdown of the support level and consolidation of quotes below the $200 level. In the event of a strong price increase and a breakdown of the $252 level, we should expect the formation of the model to be canceled and the price to continue to rise to the first target at $285.

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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.