Bitcoin Price Analysis [BTC]
Reversal Pattern Confirmation, More Upside?
Bitcoin could be due for an even bigger climb as it breaks past the neckline of the complex inverse head and shoulders on the 4-hour time frame. Price is closing above the $3,900 mark and might go for an uptrend that’s the same size as the reversal formation. The inverse head and shoulders span $3,200 to around $4,400 so the resulting rally could be around $1,200 or up to $5,000 – the target that a cryptocurrency expert on Twitter claimed bitcoin would reach in ten days. The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. However, RSI is already indicating overbought conditions or that buyers are feeling exhausted. Turning lower could signal a return in selling pressure that might spur a drop to support levels. Similarly stochastic has reached the overbought zone to indicate that buyers are tired and might let sellers take over. A brief dip could find support at the broken neckline around $3,900 or last until the dynamic support at the moving averages around $3,600.
Bitcoin has broken above a bullish flag continuation pattern and may be approaching the target on this formation, so profit-taking is to be expected. However, there is renewed bullish interest thanks to these strong gains, which might be enough to sustain the recent rallies. More and more analysts are chiming in to say that bitcoin has finally bottomed out after a downbeat performance in the latter part of the previous year, so traders are jumping in for fear of getting left behind on the climb. There is also a lot of anticipation building for the Fidelity institutional platform said to launch next month.
This would usher in stronger volumes and more volatility that could keep retail traders and bigger market players interested in bitcoin and its peers.
Ethereum Price Analysis [ETH]
There could be a short term downside correction, but buyers remain in action above $140.
Yesterday, we saw a nasty upward move from the $125 swing low in ETH price against the US Dollar. The ETH/USD pair rallied above the $130 and $136 resistance levels to move into a bullish zone. Later, buyers gained traction and pushed the price above the $140 and $142 resistance levels. There was a bearish reaction noted near the $148 level and the price dipped towards the $140 support. Sellers failed to gain momentum, resulting in a fresh upward move above the $145 and $148 resistance levels. It traded close to the $150 resistance and settled well above the 100 hourly simple moving average. At present, the price is consolidating gains above $145, with a few bearish moves. It broke the 23.6% Fib retracement level of the recent wave from the $134 low to $150 swing high. The last hourly candle is suggesting an increase in selling pressure below $150. However, there are many supports on the downside near the $145, $142 and $140 levels. More importantly, there is a major bullish trend line in place with support at $142 on the hourly chart of ETH/USD. If there is a break below the trend line, the price could test the $140 support area. It coincides with the 61.8% Fib retracement level of the recent wave from the $134 low to $150 swing high.
Any further losses could spark an extended downside correction below $138 and $136. To the topside, the $148 and $150 levels are strong barriers for buyers in the near term.
Looking at the chart, ETH price seems to be facing heavy offers near $150. Therefore, there could be a couple of swing moves above $140 before a fresh upward move. Above $150, the next target for might be $154 and $155.
Ripple Price Analysis [XRP]
The price is currently correcting lower, but it remains supported above $0.3160 and $0.3140.
After a solid upward move in Ethereum and bitcoin, ripple price finally gained traction above $0.3050 against the US Dollar. The XRP/USD pair started a decent uptrend and broke the $0.3000 and $0.3060 resistance levels. The pair moved into a bullish zone above the $0.3100 resistance and the 100 hourly simple moving average. Buyers took control above the $0.3100 level, resulting in gains above the $0.3150 and $0.3200 resistance levels. The price traded close to the $0.3300 resistance and a new weekly high was formed at $0.3292. Later, there was a sharp downside correction below $0.3260 and $0.3240. Besides, there was a break below the 23.6% Fib retracement level of the last wave from the $0.3052 low to $0.3292 high. The decline was such that the price tested the $0.3160 support area. Immediate support is near the $0.3150-0.3160 zone. It represents the 50% Fib retracement level of the last wave from the $0.3052 low to $0.3292 high. More importantly, there is a key bullish trend line formed with support near $0.3140 on the hourly chart of the XRP/USD pair. Therefore, buyers are likely to take a stand near the $0.3160 and $0.3150 levels. If there are additional declines, the price could test the $0.3110 support. It coincides with the 76.4% Fib retracement level of the last wave from the $0.3052 low to $0.3292 high. The mains support is near the $0.3095-0.3100 zone (the previous resistance). To the topside, initial resistance is at $0.3220, above which the price may rise towards $0.3260.
Looking at the chart, the XRP price clearly moved into a bullish zone above $0.3100. However, buyers need to protect declines below $0.3100. If they fail, the price might move back in a bearish zone to $0.3000. This week, buyers could target the $0.3400 and $0.3500 resistance levels as long as the price is above $0.3095.
Litecoin Price Analysis
After inching higher for the past three days, Litecoin (LTC) finally broke out of the overhead resistance at $47.2460. If the bulls sustain the breakout, the next target is $56.910. The up trending moving averages and the RSI close to overbought territory shows that the path of least resistance is to the upside.
Nonetheless, if the bulls fail to sustain above $47.2460, the traders can book partial profits on their long positions and raise the stop loss on the rest to $40. A break below this level can result in a fall to $35 and lower. The LTC/USD pair will turn bearish if it breaks down from the critical support at $27.701.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]