Many assets are stuck inside their respective Triangle patterns. Moreover, bulls haven’t been able to break the closest resistance levels and continue pushing cryptoassets upwards.Dmitriy Gurkovskiy, a senior analyst at foreign exchange broker RoboForex, provides his vision of the possible tendencies in price changes for Bitcoin as well as for other major cryptos.The unwillingness of the cryptocurrency market to move upwards may indicate a strong bearish pressure but to confirm a further decline, sellers must break the closest support areas. If BTC/USD falls lower ,500, it may continue trading downwards to reach ,300. Of course, such a movement may result in a further downtrend of the entire cryptomarket, that’s why at the moment there are serious risks of a strong descending
Topics:
<title> considers the following as important:
This could be interesting, too:
Wayne Jones writes Bad News for Crypto? Elizabeth Warren to Succeed Sherrod Brown on House Banking Committee
Martin Young writes Ethereum’s Modular Strategy: Short-Term Pain, Long-Term Gain, Says Research
Dimitar Dzhondzhorov writes 4 Reasons Why Bitcoin’s (BTC) Price Might See a Short-Term Correction
Wayne Jones writes DOJ Seeks M in Crypto from Binance Over FTX Bribery Allegations Involving SBF
Many assets are stuck inside their respective Triangle patterns. Moreover, bulls haven’t been able to break the closest resistance levels and continue pushing cryptoassets upwards.
Dmitriy Gurkovskiy, a senior analyst at foreign exchange broker RoboForex, provides his vision of the possible tendencies in price changes for Bitcoin as well as for other major cryptos.
The unwillingness of the cryptocurrency market to move upwards may indicate a strong bearish pressure but to confirm a further decline, sellers must break the closest support areas. If BTC/USD falls lower $8,500, it may continue trading downwards to reach $6,300. Of course, such a movement may result in a further downtrend of the entire cryptomarket, that’s why at the moment there are serious risks of a strong descending movement.
Bitcoin
As we can see in the daily chart, Bitcoin continues trading under an important resistance level, a breakout of which will indicate further growth. However, as long as the price is moving below this level, one shouldn’t exclude the possibility of a further decline towards the next significant support area at $6,320. Another signal in favor of this idea is a test of a quick resistance line at the RSI. To confirm a further decline, BTC/USD must break the downside border of the Bollinger Bands indicator and fix below $8,500. Still, this scenario may no longer be valid if the asset breaks the resistance level and fixes above $10,635. In this case, the instrument may continue trading upwards with the first target at $11,900.
Photo: RoboForex / TradingView
In the H4 chart, BTC/USD is stuck inside another Triangle pattern. Also, there has been a rebound from the descending resistance line at the RSI. There is a potential for a test of the pattern’s upside border and a further decline towards $8,135. To confirm this idea, the pair must break the closest support area and fix below $9,025. However, this scenario may be canceled if the price breaks the pattern’s upside border and fixes above $9,995. In this case, the asset may start completing the pattern in an upward direction.
Photo: RoboForex / TradingView
Ethereum
In the daily chart, Ethereum continues testing the descending channel’s upside border. If ETH/USD breaks $255 and fixes above it, the asset may continue growing to reach $287. However, another signal in favor of a further decline towards $220 will be a rebound from the resistance line at the RSI. As we can see, the previous test of the resistance line was followed by a strong decline, after which the price managed to return to the upside border of the Bollinger Bands indicator. Such a movement indicates serious bullish pressure.
Photo: RoboForex / TradingView
On shorter timeframes, ETH/USD is growing inside the rising channel; it has almost left the descending correctional channel, thus indicating a potential test of $253. At the moment of the test, the RSI indicator may face the resistance from the trendline, which may result in a strong rebound to the downside with the first target at $221. However, the bearish scenario may no longer be valid if the pair continues growing and fixes above $260. After that, the instrument will have no other options except for further growth with the target at $300.
Photo: RoboForex / TradingView
Litecoin
As we can see in the daily chart, Litecoin is still trading sideways; right now, the asset is moving below the middle band of the Bollinger Bands indicator and still trying to rebound from it. Such a movement indicates a bearish pressure, that’s why one shouldn’t exclude the possibility that LTC/USD may break the downside border of a Triangle pattern and fall towards $23. To confirm this idea, the pair must break the support area and fix below $38. However, this scenario may no longer be valid if the price breaks the pattern’s upside border and fixes above $51. In this case, the instrument may grow to reach the target at $68.
Photo: RoboForex / TradingView
In the H4 chart, there is a potential for the formation of a Head & Shoulders reversal pattern. As we can see, LTC/USD is expected to complete the right Shoulder at $46 and then start a significant decline towards $38 or even deeper. Another signal in favor of this idea will be a test of the resistance line at the RSI. To confirm this scenario, the pair must break the neckline and fix below $41. However, the bearish scenario may be canceled if the asset breaks $51. Many traders believe that in this case, the price may complete the pattern in an upward direction, so they are waiting for further growth.
Photo: RoboForex / TradingView
Bitcoin Cash
In the daily chart, Bitcoin Cash is moving below the middle band of the Bollinger Bands indicator, which means a strong bearish pressure. The cryptocurrency is still stuck inside a Triangle pattern. The key trading idea implies a breakout of the pattern’s downside border and a further decline towards $136. A signal in favor of this scenario will be a rebound from the resistance line at the RSI. However, this scenario may no longer be valid if the price breaks the pattern’s upside border and fixes above $280. After that, the instrument may continue trading upwards with the target at $356.
Photo: RoboForex / TradingView
As we can see in the H4 chart, the asset has rebounded from the descending trendline, which is near the closest resistance level. There is a potential for a further decline towards $223, a breakout of which may indicate a movement with the target at $211. A signal in favor of this idea is a rebound from the resistance line at the RSI. However, the price may yet trade upwards but only after breaking the descending channel’s upside border at $250. In this case, the instrument may continue growing to reach $263 and then $280.
Photo: RoboForex / TradingView
EOS
As we can see in the daily chart, EOS is still moving inside a Triangle pattern. A strong signal in favor of a further downtrend and a breakout of the pattern’s downside border is a test of the trendline at the RSI. To confirm this idea, the asset must break $2.24 – in this case, it may continue falling towards $1.32. However, the bearish scenario may no longer be valid if the cryptocurrency breaks the resistance level and fixes above $3.16. After that, the instrument may break the pattern’s upside border and continue trading upwards to reach $4.10.
Photo: RoboForex / TradingView
In the H4 chart, the cryptoassets has also tested the pattern’s upside border. In addition to that, we can see a rebound from the descending trendline at the RSI, which is a strong signal in favor of a further decline towards $2.43. If the price breaks this level, it may start completing the pattern and fall towards $2.24. Still, the bearish scenario may be canceled if the asset breaks $2.65. In this case, the instrument may continue trading upwards with the target at $2.91.
Photo: RoboForex / TradingView
Disclaimer: Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.