Bitcoin nosedived from the $7,420 resistance and trimmed most of its gains. Similarly, major Altcoins like Ethereum, ripple, EOS, bitcoin cash and litecoin fell significantly and moved into a bearish zone. Let’s see whether BTC/USD and altcoins can recover in the coming days.
- Bitcoin price formed a crucial top near the $7,420 level and declined sharply.
- Ethereum broke important supports near $268, $252 and $244 and it almost tested $210.
- Ripple price weakened below $0.3000 before buyers took a stand near $0.2700.
- EOS tested the $5.00 support and it is currently correcting higher towards $5.40 and $5.50.
- Webcoin and karatgold coin surged more than 150% during the past 7 days.
Bitcoin Price Analysis
Bitcoin price was in a solid uptrend this past week as it moved above the $7,000 resistance. This week, BTC/USD extended gains above the $7,200 level, but it faced a strong resistance near the $7,420-7,425 zone.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price failed to clear the $7,420-7,425 resistance zone and started a sharp downward move. The price nosedived below the $7,000 support and broke a crucial ascending channel with support at $6,990.
It opened the doors for more losses and the price tumbled below the $6,800 support plus the 21 simple moving average (4-hours). The decline was such that the price even broke the $6,520 support and the 50% Fib retracement level of the last ride from the $5,865 low to $7,427 high.
It traded close to the $6,300 level and the 76.4% Fib retracement level of the last ride from the $5,865 low to $7,427 high. BTC/USD is currently consolidating losses above the $7,300 level and is trading inside a short-term breakout pattern.
On the upside, it is facing resistance near the $7,520 level. If bitcoin succeed in trading above the $7,520 resistance, it could revisit the $6,800-6,820 zone (the previous important support).
Clearly, the recent bearish break changed the bias to bearish with immediate supports near $6,250 and $6,000. The most important support is at $5,865, below which the price could tumble further. On the other hand, the price has to settle above $6,800 to move into a positive zone.
Ethereum Price Analysis
Ethereum price was one of the worst performers as it declined sharply from the $303 swing high against the US Dollar. ETH/USD started a downside move after it failed to settle above $300 and broke a major support zone near $268-270.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price started a sharp decline and settled below the $250 support plus the 21 simple moving average (4-hours).
It cleared the path for sellers to take control and they pushed the price towards the $210 level. A low was formed at $211 and the price is currently trading in a range. An initial resistance is the 23.6% Fib retracement level of the recent drop from the $303 high to $211 low.
If the price succeeds in clearing the $232-235 zone, it could correct towards the next major resistance at $250-255. More importantly, the 50% Fib retracement level of the recent drop from the $303 high to $211 low is near $257 and the 21 simple moving average (4-hours).
Therefore, if the price corrects higher, it is likely to face a strong resistance near the $255-257 zone. Once the current correction is complete, the price may well move back towards the $220 and $210 levels. The most important support is at $200, below which the price could slide to $180.
Ripple Price Analysis
Ripple price also faced an increased selling pressure from the $0.3550 swing high against the US Dollar. XRP/USD struggled to move past the $0.3550 and $0.3600 resistances, resulting in a bearish break.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price was moving inside a triangle pattern with resistance at $0.3550. Once bitcoin price started declining, ripple followed and broke the triangle support near the $0.3320 level.
It set the pace for more declines and the price traded below the $0.3000 support and the 21 simple moving average (4-hours). Moreover, there was a break below the 50% Fib retracement level of the last upward move from the $0.2459 low to $0.3738 high.
The price spiked below the $0.2700 support and the 76.4% Fib retracement level of the last upward move from the $0.2459 low to $0.3738 high, but later recovered.
The current technical structure and candle formation is positive above the $0.2700 level, but the price is facing many hurdles near the $0.3000 and $0.3100 levels.
Ripple buyers need to push the price back above the $0.3100 level and the 21 SMA to start a fresh bullish wave. If not, it could decline back towards $0.2700 and $0.2500 in the near term.
EOS Price Analysis
EOS traded nicely this past week and earlier this week as it moved above the $6.00 resistance against the US Dollar. The price even traded above $6.50, but it faced a strong hurdle near $6.80.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price topped at $6.83 and later dropped sharply. During the decline, there was a break below the $6.00 support and two bullish trend lines with supports at $6.60 and $5.90.
The price also settled below the $5.60 support, the 50% Fib retracement level of the last wave from the $4.50 low to $6.83 high, and the 21 simple moving average (4-hours).
EOS tested the $5.00 support and the 76.4% Fib retracement level of the last wave from the $4.50 low to $6.83 high where buyers emerged. At the outset, the price is currently correcting higher inside an ascending channel with support at $5.10.
If the price breaks the channel and trades above $5.50, it could test the $5.60-65 resistance (the previous support). Above this, eos will most likely move into a positive zone towards $6.00 and $6.20.
On the other hand, a break below the $5.10 and $5.00 supports could accelerate losses. The next support is near the $4.50 low, below which the price might test the $4.20 level.
During the last 7 days, despite sharp losses in bitcoin and major altcoins, a few small cap altcoins rallied more than 100%, including WEB, KBC, IG, ABX and FRGC (trading volume more than $50K). A few coins gained between 50-75% like QNT, Bitcoin Diamond, LYM, DGTX, TMC and MLN.
Overall, bitcoin sellers are back in control, but if buyers succeed in pushing the price back above $6,800, BTC/USD could recover in the coming sessions along with altcoins like Ethereum, EOS, litecoin, ripple, neo, bitcoin cash, binance coin and ONT.
The market data is provided by TradingView, Bitfinex.