Bitcoin price climbed to a new monthly high above $4,200 before it faced renewed selling pressure. BTC/USD declined heavily below $4,000 and dragged all major altcoins like Ethereum (ETH), ripple (XRP), bitcoin cash (BCH), litecoin (LTC) and EOS into a bearish zone. Going forward, there could be a short term recovery, but there is a risk of more losses in the coming sessions.
- Bitcoin price topped near the $4,220 level and traded below $4,000 and $3,800.
- Ethereum price failed to settle above $165 and declined more than 20%.
- Ripple price made a downside move below the $0.3650 support and it could test $0.3000.
- EOS is trading in a bearish zone and it may trade towards the $2.10 support area.
- WXC and CIT gained more than 300% during the past 7 days.
Bitcoin Price Analysis
There was a slow and steady rise in bitcoin price above the $4,000 level. BTC/USD even broke the $4,200 resistance level this week before sellers appeared and pushed the price back below $4,000.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price formed a new monthly high at $4,221 and later declined heavily. It broke the $4,000 and $3,950 support levels to enter a bearish zone. There was also a close below the $4,000 level and the 21 simple moving average (4-hours).
The decline was initiated once sellers pushed the price below a major ascending channel with support at $3,955 on the same chart. The price broke the $3,800 support and the 76.4% Fib retracement level of the last wave from the $3,684 low to $4,221 high.
At the moment, the price is trading near the $3,700 support with a bearish angle. In the short term, there could be an upside correction, but the $3,850 and $3,900 levels are likely to prevent gains.
Only a successful close above $4,000 may push the price back in a positive zone. On the downside, a break below the $3,684 low may push the price towards the $3,550 support. It represents the 1.236 Fib extension level of the last wave from the $3,684 low to $4,221 high.
Further below $3,558 and $3,550, the price may decline towards the $3,350 support, which is the 1.618 Fib extension level. Overall, the current price action is bearish and bitcoin could extend losses towards $3,550 or $3,350.
Ethereum Price Analysis
Ethereum price failed on many occasions near the $165 and $166 resistance levels. Finally, ETH/USD started a fresh decline and traded below the $150 and $140 support levels.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price faced a heavy selling interest below the $150 level and 21 simple moving average (4-hours). Sellers pushed the price below the 61.8% Fib retracement level of the last leg from the $116 low to $166 high.
More importantly, there was a break below a major bullish trend line with support at $152 on the same chart. It opened the doors for more losses and the price declined below the $135 and $130 support levels.
At the outset, the price is testing the $127-128 support and the 76.4% Fib retracement level of the last leg from the $116 low to $166 high. ETH may correct a few points in the short term, but the previous supports at $135 and $140 will most likely stop upsides.
On the downside, a close below the $128 and $125 levels, may push the price towards the $116 swing low. The next key support is near the $105 level and the 1.236 Fib extension level of the last leg from the $116 low to $166 high.
Overall, Ethereum price is under pressure below $140 and it may accelerate declines below the $128 support level.
Ripple Price Analysis
Ripple price spiked above the $0.4000 level recently against the US Dollar, but it failed to gain bullish momentum. XRP/USD retreated from highs and broke the $0.3900 and $0.3800 support levels.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as high as $0.4042 recently and later declined below the $0.3700 support. There was even a close below the $0.3650 support and the 21 simple moving average (4-hours).
Sellers pushed the price below the $0.3420 support and a fresh weekly low was formed at $0.3228. The price is currently consolidating losses above $0.3220 and it may trade above the 23.6% Fib retracement level of the recent decline from the $0.4042 high to $0.3228 low.
However, the price is likely to face a strong selling interest near the $0.3600 and $0.3640 levels. Moreover, the previous trend line support near $0.3700 and the 21 simple moving average (4-hours) may well act as a barrier.
Finally, the 50% Fib retracement level of the recent decline from the $0.4042 high to $0.3228 low is at $0.3635 to prevent upsides.
Therefore, upsides are likely to remain capped near $0.3700 and sooner or later ripple price may extend declines. The main support is at $0.3100 and $0.3000, below which sellers are likely to struggle.
EOS Price Analysis
EOS price traded above the $3.00 resistance recently against the US Dollar. However, there was no major upward move and the price struggled near the $3.05 level.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as high as $3.05 and later started a fresh decline. It broke the $3.00 and $2.80 support levels to enter a bearish zone. More importantly, there was a close below the $2.80 level and the 21 simple moving average (4-hours).
During the decline, there was a break below a key bullish trend line with support at $2.80 on the same chart. The price dipped below the 76.4% Fib retracement level of the last leg from the $2.29 low to $3.05 high.
The current price action is bearish and it seems like the price may decline towards the $2.29 low or even the $2.10 support. The key support is $2.10 and the 1.236 Fib extension level of the last leg from the $2.29 low to $3.05 high.
Overall, EOS price may extend slides towards $2.10 or even $2.00 where buyers are likely to take a stand in the near term. On the upside, an initial resistance is at $2.60, followed by the main hurdle at $2.80.
During the past 7 days, despite heavy selling in bitcoin, a few small cap altcoins gained more than 100%, including WXC, CIT, DNA, EVN and CBC (trading volume more than $50K). Out of these, WXC rallied around 500% and CIT gained nearly 320%.
To sum up, bitcoin price made a bearish turn below $4,000 and if sellers gain momentum it could slide towards the $3,350 support. To recover, BTC/USD must move above $4,000 and $4,050. If not, there could be further declines in BTC and major altcoins like Ethereum, EOS, Stellar, XRP, BCH, TRX, ADA, NEO, ICX and XMR in the near future.
The market data is provided by TradingView, Bitfinex.