Unfortunately, other digital assets do not look ready for strong growth from the current levels.
We may suppose, that the probable correction of BTCUSD may provoke another strong decline of the crypto market; after that, we may wait for possible growth of other assets.
For example, on D1 for Litecoin and Bitcoin Cash, there are the Head and Shoulders patterns clearly visible; in case of a breakaway of the closest minimums, the currencies may go deep down, realizing the patterns.
However, if the main cryptocurrency manages to escape the descending channel soon, it may make bulls and other assets more confident.
The leading cryptocurrency managed to demonstrate another high-quality bounce off the support line again.
Presently, the quotations are testing the upper border of the descending channel. A strong signal of further growth might be another bounce off the moving average which signifies pressure of buyers and a lack of market desire to go deep into a correction.
A confirmation of the growth of the asset may be a breakaway of the upper border of the descending channel and securing above $12,385.
In this case, the aim of the growth may in fact be at $15,000. The bullish scenario may no longer be valid if the currency falls steeply and secures below $9,075. Such a negative scenario may easily send the price even lower to $7,275.
On H4 several variants of further price movements may be singled out. The most conservative scenario from the viewpoint of buyers may be a correction to the support level at $9,800, where an upside-down Head and Shoulders pattern is expected to form.
Upon a breakaway of the $12,385, we may be speaking openly about the completion of the pattern and the continuation of an uptrend.
The aim of the growth may be at $15,950. That is why an interesting support area may be that around $9,800-9,075.
Another signal, confirming this scenario, may be a bounce off the support line on RSI.
The scenario may no longer be valid if the price falls below $9,075, which may cancel the pattern and further development of the descending correction.
The quotations of Ethereum are pushing off the resistance level, which is also the upper border of the Bollinger Bands, for the second time.
This points at pressure from sellers. The main scenario here may be a decline to $185. Yet another signal confirming the decline may be a bounce off the trendline on RSI; however, this line is lying quite far away, so the decline may happen without a test.
An area interesting for buyers lies at $145; at the moment of its testing there might appear potential for forming of an upward Wolfe’s Wave pattern that, in the end, may send the price up to $275.
In order to cancel the negative scenario, bulls should secure the price above $235, which means a breakaway of the upper border of the Bollinger Bands and possible return of the asset into an uptrend.
On smaller timeframes, ETH has also failed to break through the resistance level and realize a full-scale Triangle pattern.
A short-term scenario may be a decline to $187, upon the breakaway of which the pathway to $146 may open.
The scenario may be confirmed by yet another bounce off the trendline on RSI.
As we may see, the values of the indicator are breaking through the area around 30 and simultaneously bouncing off the area around 70, which signifies a bullish impulse.
The currency may resume its growth only in case of a breakaway of the resistance line and securing above $236.
Litecoin keeps trading under the trendline, which is also the lower border of the ascending channel.
The quotations have tested $107.80 for the second time: bulls have failed to secure above it. That is why it is too early to speak about a reversal upwards.
The main trading idea may be a decline and another test of the support level at $76. A breakaway of this level will signify further decline to $60-50.
Such a negative scenario may be confirmed by the unwillingness of the market to break through the descending resistance line on RSI.
The price structure on D1 in general hints at the formation of another Head and Shoulders pattern, which may drop the price significantly down. However, it is important to remember that all patterns have a certain potential for realization, which is never 100%.
The scenario may be only canceled by strong growth and a breakaway of $125, which may signify cancellation of the pattern.
On H4 the quotations are squeezed in the Triangle pattern, which signifies ambiguity of further movements until the price escapes the model.
Judging by the regular bounces of RSI values off the resistance line we may suppose that the pattern may be broken through downwards, with the potential goal at $63.
The scenario may no longer be valid if the upper border of the pattern is broken through and the quotations secure above $107.80, which may mean a short-term victory of the bulls and the beginning of growth aimed at $125.65.
On D1 the quotations have bounced off the resistance line at $4.57 again. What is more, the asset keeps moving under the Ichimoku Cloud, which also means the preservation of the bearish trend.
The growth may be resumed only upon a breakaway of the resistance level and securing above $6.00.
As the main trading idea, we should expect a bounce off the lower border of the Cloud and a decline with the first goal at $3.05, with possible testing of $2.15.
The decline may be confirmed by a breakthrough of the lower border of the ascending channel and securing below $4.00.
On H4 the quotations are moving inside the forming Triangle pattern, which means a decrease in volatility with a subsequent strong escape to the side.
Another bounce off the resistance line on RSI hints that such a breakaway is most likely to be top down with the first goal at $3.20, followed by a further decline to $2.15.
For the bears, an important resistance is lying at $4.85; a breakaway of this level may signify growth and testing $6.60.
On D1, Bitcoin Cash still does not look ready for a new wave of growth. The price has tested the resistance near $355 and is now bouncing off. What is more, the asset remains below the lower border of the ascending channel.
The probable decline to $248 may be confirmed by a test of the descending resistance line on RSI. In case of securing below $248, forming of the reversal Head and Shoulders pattern should not be excluded, which may send the chart of the asset deep down.
In order to cancel the scenario, it is important for bulls to demonstrate robust growth and a breakaway of $400, which may bring the quotations inside the ascending channel and, perhaps, resume their growth.
On H4 the potential for a decline in order to realize the descending pattern 5-0 is preserved. The decline may also be confirmed by another bounce off the trendline on RSI, which would be another bearish signal.
What is more, a breakaway of the ascending support line on the indicator has already happened, which means a probable breakaway of the lower border of the channel and a drop with the aim at $248.
The negative scenario may be canceled in case of strong growth and a breakthrough of $400, followed by further growth to $457 and return of the bullish trend.
The weekly Crypto Technical Analysis is provided by Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
Needless to say, all statements and views expressed above and any forecasts contained herein are solely based on the author’s particular opinion.
This analysis may not be treated as trading advice. RoboForex and Trustnodes bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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