August 6, 2020

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

Further possible scenarios of the price movement of bitcoin and several popular altcoins are described RoboForex lead analyst Dmitry Gurkovsky.

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The market continued to move as part of the negativescenario and at the moment the best that can happen is a correction before the next wave of decline. For Bitcoin, the lower boundary of the Triangle model will act as a strong area of ​​resistance - until it is broken, you should not expect an upward movement.

Ethereum and EOS, on the other hand, lookquite interesting for growth as part of the start of development of upward patterns on the daily charts. Important support levels for them have not yet been broken, which leaves a chance for an upward movement.

Litecoin and Bitcoin Cash may begin to decline as part of reversal models that have been formed for a long time, but the market did not dare to work out such patterns.

Bitcoin

Leading cryptocurrency still managed to leavethe limits of the Triangle model, however, the breakdown took place down instead of the expected rebound and the beginning of growth. At the moment, as the main option, we should expect an attempt to further refine the model down.

The first target of the fall may be the lowerthe border of the rising channel at the level of $ 7030, after the breakdown of which the next support will be the area below $ 5720. A rebound from the resistance line on the RSI indicator speaks in favor of long-range downward movement. The indicator values ​​broke through region 30, which indicates the presence of a strong bearish impulse. As a rule, a signal for growth should be considered only after a return above level 30.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

BTC / USD, TradingView data

At the same time, do not rule out attemptscorrections with the test of the broken border of the model, and only after that - continued development of the downward movement. Cancellation of the option with a decrease here may be strong growth and a breakdown of the level of $ 10,995, which will indicate the return of strong buyers and a potential reversal in favor of an upward trend.

Technical analysis of smaller timeof gaps also indicates the development of an early correction to the resistance level of $ 9190, where the lower boundary of the Triangle model is located. In favor of the correction, a test of the support area on the RSI indicator is in favor, a rebound from which we saw earlier.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

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Most likely, the test of the resistance level will notreversal for new growth, and will lead to a movement even lower - to the level of $ 7200. Cancellation of the negative scenario will be a strong growth and a breakdown of the upper border of the downward channel with fixing quotes above the level of $ 9800. Only in this case it is worth returning to the option with the continuation of the rise. In the meantime, the leading asset remains under strong pressure from the bears.

Ethereum

In the case of Ethereum, do not rule outthe likelihood of the formation of the bullish “Wolfe Wave” model, which will indicate the potential for continued growth to the level of $ 280.60. The lower boundary of this model remained unbroken, which means that the chances of a rebound and upward movement remain. In favor of this rise, the test of the ascending trend line at RSI may be in favor. Earlier, we already observed a rebound in asset quotes from the level of $ 170 to $ 225. Cancellation of the positive option on the daily chart will be a breakdown of the level of $ 125. In this case, the target of the reduction may be the area of ​​$ 75.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

ETH / USD, TradingView data

On a 4-hour chart, quotes are also justtesting the support area and the broken border of the Wedge model. Do not exclude an attempt to grow cryptocurrency from current levels. An additional signal in favor of such a movement is a rebound from the support line on the RSI. A confirmation of the rise here will be a breakdown of the resistance level and consolidation above $ 185.25. Cancellation of the option with growth will be a strong drop and a breakdown of the $ 145 area. With this development, we should expect a continued decline.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

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Litecoin

Litecoin quotes continued to move withinnegative option with the development of the model “Head and shoulder”. As you can see, the asset pushed off the resistance level and is currently testing the support area of ​​about $ 55.

It is possible that we can see a correction tothe broken border of the ascending channel and the continuation of the decline with a target at $ 40. However, a downward price structure around the $ 80 level potentially indicates a probable fall to $ 21.85.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

LTC / USD, TradingView data

Cancellation of the scenario with a decrease will be a stronggrowth and breakdown of the level of $ 90, which will indicate the fixing of LTC / USD quotes above the upper border of the Ichimoku Kinko Hyo Indicator Cloud. In this case, we should expect a change in trend in favor of the upward trend and the continuation of the rise to the first target at $ 125.65. Pressure from sellers on the course of "digital silver" is currently maintained.

On the 4-hour chart, asset quotes rested inlower boundary of the downward channel. As long as buyers manage to stay higher, there is a high probability of the development of a correction in the range of $ 65 - $ 70. Already from these levels we should expect a continued decline.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

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A broken test will be in favor of this option.trend lines on the RSI. However, if the bears manage to gain a foothold under the lower boundary of the channel, this will be a signal in the direction of sales to targets in the range of $ 40 - $ 20, which can be achieved very quickly.

The cancellation of this scenario will be a breakdown of the upper boundary of the downward channel and the consolidation of Litecoin above the level of $ 80, which will indicate a potential continuation of growth to the first target at the level of $ 107.

Eos

The structure of the movement on the daily chart EOSsame as Ethereum. We are witnessing the formation of the ascending Wolfe Wave model. Quotes tested the lower boundary of the model, which indicates a potential rebound and the beginning of upward movement.

An additional signal in favor of such dynamicsstands and test the trend line on the RSI. The goal of the upturn during the development of the upward model is an area of ​​about $ 5.40. Cancellation of this option may be a fall and a breakdown of the support level with fixing quotes below $ 2.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

EOS / USD, TradingView data

On a 4-hour chart, quotes start fromsupport level, where the lower border of the downward channel is located. As a short-term trading idea, we should expect an attempt to grow to the first target at $ 4.30.

An additional signal here is a strongdrop in RSI values. As you can see, earlier prices have already shown growth at the time of testing this area. Breakdown of the upper boundary of the downward channel and consolidation above the level of $ 4.30 will indicate the quotes go beyond it and lead to a full continuation of the rise. Cancellation of the positive option for EOS will be a breakdown of the $ 2.05 area, which will indicate an increase in the bearish trend.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

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Bitcoin cash

Bitcoin Cash Quotes That Moved InAs part of the formation of the “Head and Shoulders” reversal pattern, they can return to the test of the broken neck line of this model and then continue the development of the downward movement. A test of the trend line at RSI also favors a likely correction.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

BCH / USD, TradingView data

The next important area of ​​support isthe level of $ 177.05, a breakdown of which will indicate a test area of ​​$ 100.65. Cancellation of this option here will be a strong growth with the surf of the upper boundary of the channel and fixing quotes above the level of $ 355.95. In this case, the asset will have a chance to move up.

On the 4-hour chart, we also see a strongpressure from sellers. The cryptoactive has left the limits of the Triangle model and is preparing for a correction with a test of the resistance level of $ 245.00 before the next wave of decline. In favor of this scenario, a breakdown of the trend line on the RSI appears, which, if the price returns to it, will act as resistance. Cancellation of this option may be a strong growth and the breakdown of the level of $ 320.00, in which case the growth targets will be the areas around the levels of $ 355.95 and $ 457.10.

Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7,030

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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.