Bitcoin price rally above the $7,000 level quickly faded. BTC/USD is currently declining towards the key supports at $6,520 and $6,400. Ripple outperformed recently, but other like Ethereum, bitcoin cash, EOS and litecoin trimmed most gains and are currently approaching important support levels.
- Bitcoin price failed to stay above the $6,800-6,820 resistance zone.
- Ethereum is under pressure below the $220 and $225 resistance levels.
- Ripple price remains well supported above the $0.4400 level.
- EOS remained in a tight range above the $5.00 support level.
- SIM, UBEX, YLC, SCC and CBC gained more than 200% during the past 7 days.
Bitcoin Price Analysis
Bitcoin price rallied above the $7,000 and 7,200 levels due to a sharp decline in tether. However, the BTC/USD pair failed to hold gains above the $7,000 and declined heavily to move back below the $6,800 level.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price climbed above the $6,800, $7,000 and $7,200 levels. However, it turned out to be a false break since the price moved back below $6,800-6,820.
During the decline, the price traded below the $6,700 support and the 21 simple moving average (4-hours). At the moment, the price is struggling to hold the 50% Fib retracement level of the last wave from the $6,212 low to $7,019 swing high.
It seems like the price may continue to move down towards the next major support at $6,520. It represents the previous resistance and the 61.8% Fib retracement level of the last wave from the $6,212 low to $7,019 swing high.
Below $6,520, the next major support is near the $6,440 level. There is also a connecting bullish trend line in place with support at $6,480 on the same chart.
Therefore, if the price continues to move lower, it could find a strong buying interest near the $6,520 and $6,440 levels. Below these, the next key support is near the $6,210 level.
On the upside, the price must break the 21 SMA and the $6,700 resistance. However, a proper close above the most important resistance near $6,800 is needed for an upside acceleration.
Ethereum Price Analysis
Ethereum price also followed bitcoin and spiked above the $225 and $230 levels. ETH/USD traded close to the $245 level before sellers appeared.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as high as $242 and later corrected sharply lower. The decline was such that the price moved below the $220 level and the 21 simple moving average (4-hours).
More importantly, there was a break below 61.8% Fib retracement level of the last wave from the $188 low to $242 high. It opened the doors for more losses and it seems like the price may continue to move down below the $210 level.
An immediate support is near the 76.4% Fib retracement level of the last wave from the $188 low to $242 high at $201. Below this, the price may well break the $200 handle to extend declines.
On the upside, there are two important bearish trend lines in place with resistance at $212 and $222. Buyers need to clear these trend lines, $220, and the 21 SMA to push the price back in a positive zone.
Overall, the current price action is bearish unless buyers manage to gain strength above the $220 resistance level. Above $220, the price is likely to test the $230-234 resistance area.
Ripple Price Analysis
Ripple price performed relatively well and moved up slowly and steadily above the $0.4400 level against the US Dollar. XRP/USD traded above the $0.5000 resistance before sellers took a stand.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price started a decent upward move from the $0.3780 low. The price moved higher and traded above the $0.4200 and $0.4400 resistance levels.
The upside move was such that the price climbed above the 21 simple moving average (4-hours) and the 23.6% Fib retracement level of the last decline from the $0.6238 high to $0.3780 low. However, the price failed to hold gains above the $0.5000 resistance and later declined below 0.4800.
There was also a rejection noted near the 50% Fib retracement level of the last decline from the $0.6238 high to $0.3780 low. The price is currently trading below the 21 SMA and the $0.4700 level.
More importantly, there is an ascending channel in place with support at $0.4400 on the same chart. As long as the price is following the channel, it remains supported for more gains above the $0.4700 level.
An initial resistance is at $0.4800, above which the price may possibly climb above the key $0.5000 resistance in the near term.
EOS Price Analysis
EOS price did not climb above the $6.20 and $6.50 resistance levels against the US Dollar. The price mostly traded in a broad range above the $5.00 support area.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price recently formed a high near the $6.10. It failed to stay above the $6.00 resistance and started a downside move. It moved below the $5.80 level and settled below the 21 simple moving average (4-hours).
More importantly, the price struggled to stay above the $5.50 pivot level and also moved below the 50% Fib retracement level of the last wave from the $4.99 low to $6.10 high.
On the downside, an immediate support is near the $5.40 level and the 61.8% Fib retracement level of the last wave from the $4.99 low to $6.10 high. There is also a bullish trend line on the same chart with support at $5.35.
As long as the price is above $5.35, it could move higher towards the $5.80 resistance and a connecting bearish trend line. Above the trend line, the next hurdle is near $6.00, above which the price will most likely test the $6.10 high.
On the other hand, if there is a bearish break below $5.40 and $5.35, the price could revisit the all-important $5.00 support area.
During the last 7 days, a few small cap altcoins rallied and posted gained more than 200%, including SIM, UBEX, YLC, SCC and CBC (trading volume more than $50K). Out of these, Simmitri (SIM) gained around 500% and UBEX rallied close to 450%.
Overall, bitcoin price failed to hold gains above the $7,000 and returned to the $6,600 support zone. It seems like BTC/USD may continue to trade in a range above the $6,400 support before the next major break. Similarly, there could be range moves, with a bearish angle in altcoins like Ethereum, EOS, litecoin, ripple, neo, bitcoin cash, ICX, WAN, XLM, ZRX and WTC in the near term.
The market data is provided by TradingView, Bitfinex.