Serious Correction For Bitcoin, ETH, Cryptos Says This Week’s TA

Bitcoin is experiencing a serious correction. Presently, it preserves the potential for the decline to $9,900, from where the quotations may form a new wave of growth, realizing the reversal pattern.

It is important for the “digital gold” not to fall below $9,000; such a scenario implies further descending correction.

There is still pressure on other altcoins, reversal Head and Shoulders patterns forming on the Litecoin and Bitcoin Cash; in case these assets renew the minimums, they may demonstrate a steep decline.

At the same time, EOS and Ethereum are conversely aiming at a good bounce upwards after another wave of descending correction.

The leading digital asset is correcting, forming an upside-down Head and Shoulders pattern. The key support line is at $9,115.

A breakthrough of this area will signify an escape from the ascending channel and a further decline with the aim at $7,475.

As the main trading idea, we may consider a bounce off the lower border of the channel near $9,500 and the beginning of growth with the first goal at $12,385.

A breakthrough of this resistance level means possible growth above $13,900. What is more, one should note the emergence of multiple forecasts from different analysts and companies, promising upcoming strong growth of BTC.

There is, indeed, the potential for such growth at the moment, but the bulls are to hold the price above $9,115.

On H4 we can also see a reversal pattern forming. The right Shoulder is expected to complete around $9,450-$9,200.

Ideally, the right Shoulder is to be a bit higher than the left one, which will mean the weakness of the sellers at this place and the beginning of the price reversal.

The scenario may be canceled if the currency falls below $9,115. In the classical technical analysis, the cancellation of the pattern may signify a contrary movement for the same height as the height of the pattern.

So, a serious decline should not be excluded in case of a breakaway of $9,000. Generally, modern traders try buying at the moment of the right Shoulder forming, incrementing the volume of their positions upon the breakaway of the Neck line.

The second cryptocurrency in terms of capitalization has neared the support level at $190. As we may see, the buyers failed to break through the resistance and secure above $235, regardless of several attempts to do so.

This means probable decline with the potential goal at $145. There we should expect the completion of the Bullish Wolfe Wave and the beginning of the growth of ETH above $275 in accordance with the pattern.

The growth may be confirmed by a breakaway of the descending trendline. The scenario may no longer be valid in case of a serious decline and a breakaway of $145, which will mean cancellation of the pattern and further decline to $90.

On the smaller timeframes, ETH quotations have managed to secure below the ascending trendline, which also signifies potential decline with the first aim at $190.

A breakaway of this area will mean further decline to $145, where the beginning of growth inside the ascending pattern is to be expected.

Generally, the digital asset keeps declining inside a bearish channel. The declining may be canceled if the quotations escape the channel and secure under $235, in which case growth will be aiming at $275.

On D1, EOS quotations are stuck between the resistance and support levels. Earlier, the rate of the asset already bounced off the upper border of the Bollinger Bands, which signifies pressure from the sellers.

Presently, the quotations are trying to break through the lower border of the bands. The main scenario suggests a further decline with a test of $3.20. Here lies the lower border of the ascending channel, which the cryptocurrency may easily bounce off.

Also, a Bullish Wolfe Wave pattern with the buying area near $2.35 is forming. The aim of such a pattern would be at $5.00. The scenario may no longer be valid if the quotations secure below $2.15, which will mean a potential test of $1.45.

On H4, the digital asset is squeezed inside the Triangle pattern. We are still contemplating a decline of volatility with a further potential escape to the side.

The quotations have bounced off the resistance level at $4.85 several times, suggesting a breakaway of the pattern top-down with the aim of the decline at $2.15. This movement is confirmed by a bounce off the trendline on RSI.

The scenario may be canceled in case the upper border of the pattern is broken through and the quotations secure above $4.85, which will mean an escape from the channel and the beginning of growth above $6.60.

The “digital silver” remains under pressure, with the reversal Head and Shoulders pattern forming. If the sellers manage to secure below $75.00, an attempt of decline and the beginning of the pattern realization with the aims near $40.00 are to be expected.

In order to cancel such a negative scenario, the currency should demonstrate growth and break through the level of the right Shoulder by the closing prices.

It is important for the buyers to demonstrate securing of the LTC quotations above $107.80, in which case the scenario of growth may become valid again.

It should be mentioned that earlier such a pattern already formed on the top, and the quotations fell from $130.00 to $76.50.

On H4, the quotations have broken through the lower border of the Triangle pattern. A further decline with the potential goal at $63.35 is to be expected.

This movement is confirmed by another bounce off the resistance line of the RSI. The scenario of the decline may no longer be valid in case of strong growth and a breakaway of the upper border of the descending channel, in which situations the goals may be at $107.80 and $125.65.

On the daily chart, Bitcoin Cash still looks ready for an aggressive decline as the completion of the reversal Head and Shoulders pattern.

What is more, RSI values are testing the resistance line, such a test itself being a strong signal of a decline of BCH.

The idea may be confirmed by a breakaway of the support level and securing below $245.00, which will also signal the completion of the pattern.

The scenario may be canceled in case the resistance level is broken through and the quotations return into the ascending channel, which will mean a potential continuation of growth with the first aim at $455.00.

On H4, the quotations are moving inside the descending channel. A bounce off the upper border of the channel and a further decline with the first aim at $248.45 is still expected.

A strong signal, confirming such a decline, is a bounce off the resistance line of RSI. The decline may be confirmed if the lower border of the ascending channel is broken through.

The scenario may be canceled in case of a breakaway of the upper border of the descending channel and securing above $400.00, which might be followed by growth and a test of $457.10.

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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