Bitcoin price struggled this week to break the $3,800 resistance and later declined. BTC/USD is currently forming a breakout pattern and it could soon make the next major move either above $3,800 or below $3,500. Similarly, there is a lot of bearish pressure on all major altcoins like Ethereum (ETH), ripple (XRP), bitcoin cash (BCH), litecoin (LTC) and EOS, but they could stage a short term recovery.
- Bitcoin price failed to overcome sellers near the $3,790 and $3,800 resistances.
- Ethereum price must hold the key $115 support area to start a recovery.
- Ripple price is trading in a range, but it could bounce back to $0.3600.
- EOS is showing positive signs and it might climb towards $2.75 or $3.00.
- 2GO and UP gained more than 200% during the past 7 days.
Bitcoin Price Analysis
After a major decline, bitcoin price found support near the $3,575 level. Later, BTC/USD started trading in a range and recovered a few points above the $3,600 and $3,680 resistance levels.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as low as $3,573 and later corrected above $3,700 and the 21 simple moving average (4-hours). There was also a break above the 23.6% Fib retracement level of the last decline from the $4,218 high to $3,573 low.
However, the previous supports near the $3,780 and $3,800 levels acted as a strong resistance and prevented more gains. The price trimmed gains and traded back below the $3,680 level.
At the outset, there is a contracting triangle formed with resistance near the $3,725 level. Should there be an upside break above $3,725 and $3,800, the price may start a decent recovery. The next key resistance is at $3,895 and the 50% Fib retracement level of the last decline from the $4,218 high to $3,573 low.
Above $3,900, the price may even climb above the $4,000 and $4,100 resistance levels. On the other hand, if there is a downside break below the $3,600 and $3,575 support levels, the price could test the $3,370 support level.
The current price action is slightly bearish below $3,725, but a break above the triangle and $3,800 could open the doors for a solid upward move in the coming sessions.
Ethereum Price Analysis
Ethereum price faced a heavy selling interest near the $160 barrier and later declined sharply below $140. ETH/USD even broke the $130 support and tested the $115 support area.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as low as $115.78 and later started a short term upside correction. The price bounced back above the $126 resistance and the 21 simple moving average (4-hours).
There was even a push above the 23.6% Fib retracement level of the last decline from the $162 swing high to $116 swing low. However, sellers protected gains near the $130-132 resistance zone, resulting in a fresh decline.
At the moment, the price is trading below the $128 resistance and two bearish trend lines with resistance near $127 on the same chart. If there is an upside break above trend lines and $128, the price may climb towards the $140 level.
The stated $140 barrier coincides with the 50% Fib retracement level of the last decline from the $162 swing high to $116 swing low. Above $140, the price will most likely test the $144 and $145 resistance levels.
Conversely, if there is no upside break above $128, Ethereum could break the $115-116 support. The next major support is at $108, below which there is a risk of a push towards $100.
Ripple Price Analysis
Ripple price struggled this week to settle above the $0.3800 and $0.4000 resistance levels against the US Dollar. XRP/USD topped near the $0.4040 level and later reacted to the downside below $0.3600.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded below the $0.3600 and $0.3500 support levels. There was even a close below the $0.3400 level and the 21 simple moving average (4-hours). The price spiked below the $0.3200 support and traded as low as $0.3177.
Recently, there was a short term correction above the $0.3200 and $0.3250 level. XRP even moved above the 23.6% Fib retracement level of the recent decline from the $0.4043 high to $0.3177 low.
However, the previous supports near the $0.3480 and $0.3500 levels acted as a solid resistance. The price trimmed gains and it is currently trading below the $0.3400 support.
It seems like ripple needs to surpass the $0.3400 and $0.3480 resistance levels to start a recovery. In the mentioned case, the price could test the 50% Fib retracement level of the recent decline from the $0.4043 high to $0.3177 low near $0.3610.
If there is a downside extension, the price is likely to test the $0.3040 support, where buyers are likely to take a stand.
EOS Price Analysis
EOS price extended declines below the $2.50 and $2.40 support levels against the US Dollar. The price tested the $2.25 support and later formed a base for a decent recovery.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as low as $2.24 and recently traded above the $2.40 resistance plus the 21 simple moving average (4-hours). Moreover, the price cleared the 23.6% Fib retracement level of the last drop from the $3.05 high to $2.24 low.
More importantly, it seems like buyers were able to clear a major resistance near $2.45 and a triangle on the same chart. Should EOS gain traction above the $2.60 level, the price may climb towards the $2.75 resistance level.
Besides, the 61.8% Fib retracement level of the last drop from the $3.05 high to $2.24 low is at $2.74 to act as a resistance, above which the price may perhaps rise towards the $3.00 barrier.
Therefore, the current technical structure indicates a positive bias above the $2.60 resistance. On the flip side, if EOS fails to climb above $2.60 and $2.65, there could be a fresh decline towards the $2.25 support area.
During the past 7 days, a few small cap altcoins traded higher and gained more than 100%, including 2GO, UP, APL, DLT, RPM, CIT, KST and SNPC (trading volume more than $50K). Out of these, 2GO rallied around 325% and UP gained nearly 210%.
Overall, bitcoin price is positioned for the next key break either above $3,800 or below $3,500. The technical indicators are pointing bearish signs, but as long as BTC/USD is above $3,500, there are chances of a decent recovery above $3,800 and $4,000. If buyers fail, it could drag BTC and major altcoins like Ethereum, EOS, Stellar, XRP, BCH, TRX, ADA, TRX, IOTA and XMR lower in the near term.
The market data is provided by TradingView, Bitfinex.