Bitcoin seems to be struggling near a crucial resistance at $6,800. Let’s analyze bitcoin, Ethereum (ETH), Ripple (XRP) and EOS to understand the current trend and whether BTC/USD can break $6,800.
- Bitcoin price must clear the $6,780-6,800 resistance zone for more upsides.
- Gains in ETH/USD are capped by a major bearish trend line with resistance at $472 on the 4-hour chart.
- Ripple price struggled to move above $0.5200, resulting in a downside break below $0.5000.
- EOS is facing a crucial resistance near $9.20 and a bearish trend line on the 4-hour chart.
- Among the top 100 cryptocurrencies, ZRX and Status gained more than 50% this week.
Bitcoin Price Analysis
Bitcoin price climbed higher this month after a support base was formed at $6,000. BTC/USD surged above the $6,500 resistance and traded towards the $6,800 resistance zone, where sellers emerged.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, there were a couple of attempts to settle above the $6,750-6,800 resistance zone, but bitcoin buyers failed to gain momentum. Recently, the price dipped and traded below the 21 SMA and $6,600.
More importantly, there was a break below the 50% Fib retracement level of the last wave from the $6,257 low to $6,786 high. However, the current decline is finding support near $6,500 and a connecting bullish trend line.
Should there be a downside break below the trend line and a 4-hour close below $6,500, bitcoin price could accelerate declines towards $6,200. Below this, the next support is at $6,000.
On the flip side, a successful break above $6,800 may perhaps clear the path for more upsides in BTC/USD above the $7,000 hurdle.
Ethereum Price Analysis
Ethereum price formed a solid support near $400 and jumped higher during the past few days against the US Dollar. ETH/USD broke the $440 and $460 resistance levels, but it failed to clear the $490 resistance.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, there is a crucial bearish trend line in place with current resistance at $472. Moreover, the 21 SMA is positioned just near the trend line to prevent an upside break above $475. Additionally, the price seems to be struggling to break the 50% Fib retracement level of the last decline from the $548 high to $404 low.
Therefore, a proper close above the trend line, $475, and the 21 SMA is needed for more gains. If buyers fail to push the price above these barriers, there are chances of a downside reaction back towards $420.
Ripple Price Analysis
Ripple price traded higher this week and moved above the $0.5000 resistance. However, the XRP/USD pair struggled a lot to clear the $0.5190-0.5200 resistance zone, resulting in a bearish reaction.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, there was a rejection noted below $0.5200 and a high was formed at $0.5193. The price started a fresh bearish wave and declined below a major bullish trend line with support at $0.4900.
There was a break a close below the $0.5000 support and the 21 SMA. At present, the price is testing the 50% Fib retracement level of the last wave from the $0.4245 low to $0.5193 high. Should there be a break below $0.4600, the price will most likely decline to $0.4400. On the upside, $0.4900, $0.5000 and $0.5200 are important resistances.
EOS Price Analysis
EOS price slowly moved higher and broke the $8.00 and $8.50 resistance levels against the US Dollar. EOS/USD pair even moved above the 50% Fib retracement level of the last decline from the $10.86 high to $6.87 low.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price is currently facing a solid hurdle near a bearish trend line with current resistance at $9.00. Moreover, there was a rejection near the 61.8% Fib retracement level of the last decline from the $10.86 high to $6.87 low.
Therefore, the price must break the trend line, $9.20, and settle above the 21 SMA to trade further higher. If it fails to do so, there is a risk of a downside break below the $8.50 support. The next supports are at $8.00, $7.80 and $7.60.
During the last 7 days, ZRX and Status gained heavily among the top 100 cryptocurrencies. ZRX surged more than 60% and traded above the $0.9000 resistance. However, it is currently facing a tough challenge near the $1.00 handle. Similarly, Status gained around 54% and jumped above the $0.08 resistance. On the upside, resistances are seen at $0.085, $0.090 and $0.010.
The overall price action suggests that bitcoin and Ethereum are struggling near key resistances. Therefore, they will either break higher or start a fresh bearish wave in the near term.
The market data is provided by TradingView, Bitfinex.