Bitcoin, Ethereum, Ripple, EOS, Bitcoin Cash and other altcoins struggled to hold key supports this week. The market remained in the red zone, but it may perhaps correct higher in the short term.
- Bitcoin price must move back above $6,400 to start a decent recovery.
- ETH/USD is holding a crucial support near $415-420, which is a positive sign.
- Ripple price is likely forming a double bottom near the $0.4250 level.
- EOS remains in a major downtrend and is following a significant bearish trend line with resistance at $8.00.
- Biggest gainers during the past seven days were Stox, LOCIcoin, SUMO, ETP and Jiyo.
Bitcoin Price Analysis
This week, bitcoin price made many attempts to surpass a crucial resistance near $6,800-6,840. However, BTC/USD failed to gain traction, resulting in a bearish reaction.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, there was a downside break below the $6,700 support and a bullish trend line with support at $6,680. It opened the doors for more losses and the price tumbled below the 50% Fib retracement level of the last leg from the $5,776 low to $6,836 high.
More importantly, the price broke the 21 simple moving average and another key bullish trend line at $6,350 on the same chart. It traded close to the $6,100 level before buyers appeared.
The price is currently correcting higher with a few positive signs, but there is a major resistance waiting near $6,350 and the 21 SMA. A break and close above $6,350 and $6,400 is required to start a major upward move in bitcoin during the coming days.
If buyers fail to push the price above $6,400, BTC/USD could drop back towards the 76.4% Fib retracement level of the last leg from the $5,776 low to $6,836 high at $6,020. Below this, there is a risk of more declines towards $5,800.
Ethereum Price Analysis
Ethereum price tumbled from the $496.53 high and broke many supports against the US Dollar. ETH/USD broke the $468.00 and $455.00 support levels to move into a bearish zone.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price settled below a major bullish trend line with support at $458.00, which ignited a bearish acceleration. It traded as low as $417.74 and is currently correcting higher.
It is testing the 23.6% Fib retracement level of the last downside move from the $496.53 high to $417.74 low, and is facing resistance near the 21 SMA. Above this, the price may perhaps correct towards the $450.00-452.00 resistance area.
A successful close above $452.00 and $457.00 resistances will most likely open the doors for a change in trend to bullish. If not, the price remains at a risk of a drop towards the $400.00 support area.
Ripple Price Analysis
Ripple price started a steady downtrend from the $0.5200 swing high against the US Dollar. XRP/USD broke a few supports, including $0.5000 and $0.4650 to move into a bearish zone.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price revisited the last swing low near $0.4250, which acted as a strong support. The price is currently recovering above the $0.4400 level.
It broke the 23.6% Fib retracement level of the last decline from the $0.4900 high to $0.4247 low. However, there is a crucial resistance waiting on the upside near a bearish trend line and $0.4500.
A break and 4-hour close above $0.4500 is needed for more upsides. In the short-term, the $0.4250 support holds a lot of importance, below which, the price may well trade to $0.4000.
EOS Price Analysis
EOS price is in a significant downtrend from the $11.00 resistance against the US Dollar. EOS/USD pair recently cleared the $8.00 and $7.00 support levels to register a new monthly low.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as low as $6.54 and it is currently correcting higher. An initial resistance is near the 23.6% Fib retracement level of the last drop from the $9.43 high to $6.54 low.
It may continue to correct higher, but there is a crucial hurdle on the upside for buyers near $8.00 and a bearish trend line. Only a break above this could start a decent recovery in EOS towards the $10.00 level.
During the last 7 days, a few small cap altcoins gained more than 50%, including Stox, LOCIcoin, SUMO, ETP and Jiyo (trading volume more than $50K). The best performer was Stox with close to 100% gains. It broke the $0.30 resistance and the next target seems to be $0.50.
To sum up, bitcoin and Ethereum are trading near key levels. The next move depends how the market trades in the next few sessions. Should BTC/USD succeed in moving above $6,400 and $6,500, it could resume uptrend.
The market data is provided by TradingView, Bitfinex.