Bitcoin price finally rebounded after forming a strong support at $3,400. BTC/USD rallied above the $3,550 resistance, traded towards the $3,800 resistance, and later corrected lower. The current price action is positive and there could be more gains in bitcoin and altcoins like Ethereum (ETH), ripple (XRP), bitcoin cash (BCH), litecoin (LTC) and EOS.
- Bitcoin price surged above the $3,550 and $3,620 resistance levels.
- Ethereum price broke a crucial declining channel with resistance near $106 and settled above $115.
- Ripple price is forming a significant breakout pattern with resistance at $0.3130 and support at $0.3000.
- EOS price rallied recently above the $2.55 resistance and tested the $3.00 barrier.
- INO and TKN rallied more than 150% during the past 7 days.
Bitcoin Price Analysis
After forming a solid support base near $3,400, bitcoin price started a strong upward move. BTC/USD broke the key $3,550 resistance area to move into a bullish zone and start a decent uptrend.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price broke many hurdles on the way up, including $3,620 and the 21 simple moving average (4-hours). More importantly, there was a break above a crucial bearish trend line with resistance at $3,450.
The upward move was strong as the price climbed above the $3,700 resistance and traded towards the $3,800 resistance. A high was formed at $3,800 and later the price started a downside correction.
It declined below the $3,700 level and the 23.6% Fib retracement level of the recent wave from the $3,404 low to $3,800 high. However, there is a strong support formed near the $3,625 and $3,640 levels.
Besides, it seems like there is a key bullish flag forming with resistance near $3,700 on the same chart. Should bitcoin break the channel resistance, the price could resume its upward move above $3,750. The main resistance is at $3,800, above which the price may perhaps test the $4,000 level in the coming days.
On the downside, the $3,600 support and the 50% Fib retracement level of the recent wave from the $3,404 low to $3,800 high are important buy zones. However, the main support is near the $3,550 level, which is a pivot zone and acted as a resistance earlier.
Therefore, dips remain supported near the $3,600 and $3,550 levels. On the upside, a break above $3,700 and $3,800 is needed for an acceleration towards the $4,000 and $4,200 resistances.
Ethereum Price Analysis
Ethereum price also formed a strong support near the $100-102 zone. ETH/USD gained bullish momentum this week and broke many resistance levels, including $110 and $115.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as low as $102 and later climbed above the $110 resistance. During the rise, there was a break above a crucial declining channel with resistance near $106. The price traded above the $115 resistance and settled above the 21 simple moving average (4-hours).
Buyers gained control above the $120 and $125 levels. A high was formed at $130 and later the price corrected lower. It declined below the 23.6% Fib retracement level of the last wave from the $102 low to $130 high.
However, the $120 support area is acting as a decent barrier for sellers. Moreover, there is an ascending channel formed with support at $122 on the same chart.
On the upside, the price must break the $128 and $130 resistance levels to trade further higher. The next stop for buyers could be near $140 or $144. On the other hand, if there is a downside break below the channel support, the price might test the $116 support area.
The 50% Fib retracement level of the last wave from the $102 low to $130 high is also near the $116 level to act as a solid support. Overall, there are high chances of more gains in Ethereum price as long as it is above the $116 support.
Ripple Price Analysis
Ripple price spiked higher on a couple of occasions above the $0.3200 resistance level against the US Dollar. However, XRP/USD buyers failed to retain strength, resulting in bearish and range moves above the $0.3000 support area.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as high as $0.3427 recently and later corrected lower. It declined heavily and broke the $0.3200 and $0.3000 support levels. The price even broke the $0.2950 support and the 21 simple moving average (4-hours).
A low was formed at $0.2900 and later the price started an upside correction. Buyers pushed the price above the 50% Fib retracement level of the last drop from the $0.3427 high to $0.2900 low.
However, the upward move was capped by the $0.3250 resistance and the 61.8% Fib retracement level of the last drop from the $0.3427 high to $0.2900 low. Ripple trimmed gains and it is currently consolidating above the $0.3000 support area.
More importantly, there is a significant breakout pattern formed with resistance at $0.3130 and support at $0.3000 on the same chart. If there is an upside break above $0.3130 and $0.3150, there could be a solid wave towards the $0.3250 and $0.3350 resistance levels.
Conversely, a downside break below the $0.3000 support might increase bearish pressure on XRP and it could decline towards the $0.2900 or $0.2850 support in the coming sessions.
EOS Price Analysis
EOS price was one of the best performers as it broke the key $2.50 and $2.55 resistances against the US Dollar. After trading in a broad range for a long time, buyers finally took over and pushed the price above the $2.55 and $2.60 resistances.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price climbed above the $2.60 and $2.70 resistance levels to move into a positive zone. There was even a close above the $2.65 level and the 21 simple moving average (4-hours).
The price traded towards the $3.00 resistance and formed a high at $3.06 before starting a downside correction. It traded below the $2.90 level and the 23.6% Fib retracement level of the last wave from the $2.31 low to $3.06 high.
However, there is a short-term connecting bullish trend line in place with support at $2.80 on the same chart. It seems like there are two possible scenarios. First, the price continues to move higher towards the $3.00 and $3.10 resistance levels.
Second, the price breaks the trend line and tests the $2.65 support area before a fresh upward move. Besides, the 50% Fib retracement level of the last wave from the $2.31 low to $3.06 high is also near the $2.68 level to act as a support.
During the past 7 days, a few small cap altcoins rallied and posted gains more than 100%, including INO, TKN, EMPR, UBT, CARD, DIM and LTO (trading volume more than $50K). Out of these, INOR rallied around 400% and TKN gained nearly 180%.
To sum up, bitcoin price clearly moved into a positive zone above the $3,550 and $3,600 levels. Having said that, BTC buyers need to gain strength above $3,700 and $3,800 to push the price further higher. If they continue to struggle, there could be a bearish reaction in BTC and altcoins such as Ethereum, ripple, EOS, stellar, XRP, BNB, ADA, LTC, TRX, XMR and NEO.
The market data is provided by TradingView, Bitfinex.