Last week disappointed investors hoping for a resumption of growth. Market capitalization of cryptocurrency fell below $300 billion, thus emphasizing the pessimistic mood of most market participants. In addition, almost all cryptocurrencies entrenched in a downward trend that, technically, only hints at the decline and sales.
Of course, the bidding is affected by the negative news background, which started the week before that. Heroes news was exchange and MtGox Binance, especially the latter, events which gave a clear signal that sales in large volumes will still be the center of attention.
Also this week, a new batch of news, which created additional pressure on the market. It became known that Google will not advertise ICO and cryptocurrencies. Recall that Google is one of the most visited sites in the world along with Facebook. Of course, this news provoked sales of cryptocurrencies.
Another negative news was that the head of the International monetary Fund Christine Lagarde issued a statement on the need for enhanced control of the cryptocurrency. This is not the first such rhetoric is representative of a major financial institution, but it is poured «oil on the fire» in the shaky position of the cryptocurrency market.
Now technical analysis:
Bitcoin (BTC) in the four-hour chart confidently entrenched in a downtrend. In addition, the price chart has confidently broken the support around $7826, which already serves as an additional signal to sell. It is also seen that digital currency implements negative scenario and, if you focus on Fibonacci levels, until the level in the area of 0.786 long. If the news will affect sales, will open the goal to support around $7833$.
However, the price chart in the «digital gold» is the correction A-B-C. and the development wave is still in the spotlight. At the moment you can see the formation of waves, and yet the arguments in favor of its completion.
If we consider the optimistic scenario, it might be testing the resistance around $8400. In the case of its breakdown will be confident in securing such trade as $9389 – $8400.
ETH/USD H4: passed important price support
The ether (ETH) confidently passed down the support at $564. It is a sell signal because the asset continues to move in the direction of the downward trend. The negative scenario would be the consolidation of lower trading limits, namely $564 – $344. In addition, support in the area of $344 coincides with the 2.618 Fibonacci level, which is technically alludes to the importance of the price level.
Terms of Elliott waves, still there is a development chart as part of the composite correction W X Y. At this point, there is a developing impulse wave 5, and judging by the mood of traders to sell the air, next week we can expect the gravity to support in the neighborhood of $344.
In the case of the positive scenario and is testing levels around $564, can be restated in the framework of trade $668 – $564. But taking into account the General negative background, such a scenario seems unlikely.
LTC/USD H4: litecoin price near support
Litecoin (LTC) continues to go in the direction of the downward trend, in this case visible light range of up to support in the neighborhood of $140. If the price chart will surely overcome this level, then there will be one more signal to focus on sales. The next step in case of realization of this scenario will be consolidation in lower trade under a $140 — $107.
Like other cryptocurrencies, «digital silver» is in the correctional subframe A-B-C. Therefore, a new wave of decline can occur with a high probability.
A positive scenario for litecoin is a reversal from the support at around $140 and attempt to reach resistance at around $160. It is important to note that this level coincides with a Fibonacci level 1, and can serve as a starting point in favor of growth.
XRP/USD H4: new price support
Ripple (XRP) may soon test support near $0.5637. At this level, it might be consolidated movement and reversal, because this coin is resold. Based on the current situation, we can expect consolidation in the trading range of $0.8717 – $0.5637. However, we should not forget that ripple is in the downtrend, and technically it can encourage traders to continue to focus on sales.
Terms of Elliott waves, one can see the development of the downward momentum in the framework 1 2 3 4 5 because the price chart is in a downtrend. If the sale will be in the spotlight, then open the prospect of reaching the $0.2045.
DSH/USD H4: near important levels
Dash (DSH) konsolidiruyutsya near the support level of around $380, it is not excluded that it may be a turn in favor of growth. In addition, within a week the Outlook was sale, and at the moment the crypto currency is oversold. Therefore, the scenario with a turn seems quite probable it could be to achieve resistance near $450.
If it is a steady downward movement with the trend, then will the prospect of reaching the $235. In this case, you can see the extension of the fifth impulse wave, as a rule it gets to the end of the pulse movement.
With regard to the Fibonacci ratios, the level 1 coincides with the support level at around $380. It’s safe to say that now is testing technically important level. If there were no alternatives ($380), then the sell signal will only intensify.