It implies strong pressure from buyers. What is more, formation of the model in the direction of the current ascending trend may provoke robust growth.
However, this idea will prove true if the quotations exit the long-term descending trend and secure above $14,050.
Ethereum is also aiming at further growth, while other currencies do not promise anything interesting form the point of technical analysis.
Litecoin and Bitcoin Cash are forming a reversal pattern, and in case these patterns are confirmed, a decline is to be expected. EOS is also aiming down but not that seriously.
The cryptocurrency has managed to bounce off the support line and is getting ready to test the upper border of the descending channel.
Such a breakthrough will signal exit from a long period of correction and, all in all, further growth with potential testing of $20,000. The growth of Bitcoin to the width of the channel is not to be excluded.
Another confirmation of the growth is the bounce off the support line on RSI. The closest resistance line is at $14,050. The main trading idea is testing the lower border of the ascending channel at $12,050 with further growth.
This will be confirmed by a breakthrough of the upper border of the channel and securing above $14,250. The scenario will be canceled in case of a breakthrough of the support line at $9,300. Then the goal of the decline will be the area around $7,275.
On H4 we may see the quotations move inside the reversal Head and Shoulders pattern. Earlier we mentioned high potential of the appearance of the model which will prove the development of the ascending trend.
The nearest goal of growth is the area around $14,050. The short-term trading idea is testing of the Neck at $12,400 and further growth.
The variant may no longer be valid if the quotations break through the lower border of the channel, and BTC/USD secures above $10,000. The next goals of descending would be $9,000 and $7,275.
Ethereum keeps moving inside the bullish channel. What is more, another ascending channel with a steeper slope has formed, which signifies the strength of buyers.
The currency is still above the support level at $280. The main trading idea would be a decline to the lower border of the channel and continuation of growth with the first goal at $355; a breakthrough of this level will signify a next goal at $410.
The variant will not be valid if the currency falls below $280; in this case the next goal will be the level of $225.
On H4, Ethereum has bounced off the lower border of the channel. The current structure of the price movement looks symmetrical, which also implies potential for further growth.
This variant is supported by a bounce off the support line on RSI. The growth will be confirmed if the quotations secure above $354. The scenario will no longer be valid if the currency declines, breaks through the lower border of the channel and secures at $280.
In this case further development of the descending correction with the goal at $225 is to be expected.
EOS keeps trading above the Ichimoku Cloud. The trend is still descending. Unlike Bitcoin, there is no potential of growth.
As the main trading idea, a rise and testing of the lower border of the Cloud at $6.55 are expected. A bounce off and further development of the descending trend with the potential goal at $4.40 are to follow.
The fall will not happen if the buyers raise the price above $7.05, which will signal a renewal of the ascending trend with the closest goal at $7.80.
On H4 the volatility of EOS is still declining. The quotations are squeezed in the Triangle model.
As the short-term trading model a breakthrough of the lower border of the model is to be expected. It will be confirmed by closing below $5.20, in which case further decline to $4.38 is to follow.
The scenario will not work in case of a robust rise and a breakthrough of $6.55. This will signal a breakthrough of the upper border of the model and an attempt of growth with the first goal at $7.80.
Litecoin keeps moving in the ascending channel. On the one hand, there is potential for growth inside the channel; on the other hand, there is a risk of forming of a reversal Head and Shoulders pattern.
What is more, on RSI the quotations keep bouncing off the descending trend line which means pressure from the sellers.
If the buyers fail to maintain the currency above $102, a decline aiming at $64 according to the reversas Head and Shoulders pattern is to be expected.
Strong growth and a breakthrough at $146 will cancel the variant, signifying further development of the ascending trend.
On H1 Litecoin is moving inside the Triangle pattern. The volatility is declining; however, a strong movement towards a breakthrough of the pattern is to be expected soon.
A short-term trading idea would be a breakthrough of the lower border of the pattern and securing below $109.
This will signify further decline to $95 and down according to the reversal pattern. The variant will no longer be valid in case of a breakthrough of $128; then the growth will aim at $146.
On the daily time frame the currency is moving inside the ascending channel. However, here also exists a risk of forming of a reversal pattern and beginning of a decline aiming at $225.
As the main trading idea a rise to $465 and the beginning of decline are to be expected. Around this line forming of the reversal Head and Shoulders pattern is to be expected.
The decline will be confirmed by a drop and a breakthrough of $365. Another confirmation is a bounce off the resistance line on RSI.
The negative scenario will no longer be valid in case of a robust growth and a breakthrough of $500, which will mean cancellation of the reversal pattern and may provoke growth towards $636.
H4 also shows a reversal pattern forming. A growth from the present levels to the resistance area at $466 is expected; at this level the right shoulder of the pattern will be complete and the decline may start.
Testing of the broken trend line from below will be yet another confirmation. The variant will be canceled if the quotations renew the local maximum and secure above $520.
In this case one can freely scheme the height of the model from the maximum and expect robust growth of the currency.
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.