Cryptocurrencies continue consolidating.
Dmitriy Gurkovskiy, a senior analyst at foreign exchange broker RoboForex, provides his vision of the possible tendencies in price changes for Bitcoin as well as for other major cryptos.
The major digital asset is stuck inside a Triangle pattern and only a breakout of $10.565 may indicate further growth towards $13.865. However, the bearish pressure is also rising – we haven’t seen any growth in Ethereum, although it earlier demonstrated a nice ascending impulse. ETH/USD has tested the descending channel’s upside border in the daily chart, which may result in a rebound to the downside to reach $175. That’s why, one shouldn’t exclude a possibility of a new decline in BTC/USD towards $6.320 as well, where the asset may complete a huge reversal pattern. After that, the entire cryptomarket may start a strong bullish uptrend and may consider conservative purchases.
In the daily chart, bears are still defending the resistance level at $10,000. At the moment, BTC/USD is forming a Triangle pattern. The key trading idea remains the same: the asset is expected to break the pattern’s downside border and continue falling towards $6,320 to complete it. Another signal in favor of this idea will be a rebound from the descending trendline at the RSI. To confirm this scenario, the pair must break the support level and fix below $8,555. However, this scenario will no longer be valid if the price breaks the pattern’s upside border. In this case, the instrument may continue trading upwards with the first target at $11,900.
As we can see in the H4 chart, BTC/USD is falling inside the descending channel. One shouldn’t exclude a possibility of a test of the channel’s upside border at $9,750 and further decline towards $8,875. If the price breaks the latter level, it may continue falling to reach $7,995. A strong signal in favor of this idea will be a rebound from the resistance line at the RSI. However, the bearish scenario may be canceled if the asset breaks the channel’s upside border at $10,045. In this case, the instrument may continue trading upwards to reach $10,565.
As we can see in the daily chart, Ethereum is still correcting within the descending channel; bulls haven’t been able to fix the price above $253 to continue pushing it towards $287. The key trading idea implies a rebound from the channel’s upside border and a further decline with the first target at $175. A strong signal in favor of this idea is a rebound from the ascending support line at the RSI, which indicates a potential breakout of the rising channel’s downside border. However, this scenario may no longer be valid if the asset breaks the resistance level and fixes above $253. In this case, the instrument may switch to another scenario, which suggests further growth.
On shorter timeframes, ETH/USD is falling within the…