The past week was marked by growth of leading capitalization of crypto-currencies by 5% or more. In addition, virtually all popular cryptocurrencies technically give a signal for growth, because it came from the framework of the downward trend. It is also seen that the desire to buy among market participants over the past trading week has not diminished, but only increased, which may indicate a moderate optimism for the cryptocurrency market.
From the point of view of technical analysis, there are still downside risks, as the psychologically important levels of resistance fail. As for the capitalization of the stock market, it is at the time of publication rests on the level of $280 billion and for weeks were unable to overcome the «optimism level» of $300 billion. Thus, the purchase can be considered as intraday without serious deals on the principle of «buy and hold».
As for the news background, throughout the week, he was carrying neutral. But I want to highlight the message that Dutch exchange-traded Fund (ETF) Flow Traders NV has added into the listing of the index obligations (ETN) on the basis of bitcoin and ether. You should also take note that the market can respond positively to future communications concerning efforts VanEck and SolidX on the implementation of the ETF for the cryptocurrency.
Now technical analysis:
BTC/USD (H4): soon the new range
Bitcoin (BTC) is testing important resistance in the neighborhood of $6837 and this, in turn, says it is willing to «digital gold» pass is technically important resistance level. Therefore, the breakout of this mark will give a good signal for the bulls to buy bitcoin. In the case of this scenario, opens the prospect of achieving the next level in the neighborhood of $7162. If this level is passed, then the goal is raised to $8000.
In addition, it is necessary to consider that Bicon entrenched in higher trading framework ($6262 – $6837) and sank after leaving a local downward trend. This is an encouraging signal that the momentum may continue.
From the point of view of the Elliott Wave theory shows that the graph forms a new momentum and hence a new phase of the upward movement. So the pair $6837 will be a continuation of the momentum in favor of wave 1. The negative scenario is testing and breakdown of the nearest support at $6275.
ETH/USD H4: higher level of
The ether (ETH) holding above an important support around $450. In addition, the graph is above the weekly highs, which technically gives signal to the market. So the speculative interest of traders to buy will allow the air to reach that resistance level like $540. It is also worth noting that the reserve to this level is.
As for the wave, after confidently out of the framework of the downward trend there is a hint of the formation of a new pulse. If schedule prices will surely reach the next level ($540), then it will signal a reversal or consolidation as aging pause against the grain.
In case of realization of a negative scenario, the air may test and break the support level at around $450.
LTC/USD H4: the reversal from the support
Litecoin (LTC) is trying to turn around and reach the resistance level at around $90. If the «digital silver» will surely overcome this level, then it will be a good signal to buy. This opens the prospect of achieving the next level in the range of $102 and $109. In addition, it should be noted that there is a triangle, and technically, it is a hint at the imminent release of the figures and consolidate in a higher trading range.
In addition, seen out of the framework of the downward trend is an additional buy signal, and only a break of resistance near $90 will set the scene for another wave of growth.
Elliott wave support growth. After the completion of the downward momentum it is logical to expect a new growth phase.
The negative scenario for litecoin is another test of support at $71.
XRP/USD H4: the triangle!
Ripple (XRP), as well as other cryptocurrencies, after the release of the downward trend is trying to continue to grow. The first obstacle for cryptocurrencies will be the resistance level at $0.5045. A break of that level will provoke the bulls continue to buy with a target of up to $0.5563. We also see the triangle, which also supports the ripple in the direction of growth.
From the point of view of technical analysis, there is a hint of the formation of the upward momentum, the breakdown of the $0.5045 will continue the development momentum.
In the event of negative news background ripple can «give» to the nearest support at around $0.4254.
XMR/USD H4: strong resistance
Monero (XMR) after the triangle breakout has continued to support at the level of $132. However, there is a tendency for growth, so we can expect another test of resistance around $147. In addition, as is the case with other cryptocurrencies, the breakout of the important resistance will open the prospect of reaching the next level in the region of $178.
In the case of pressure on monero may be an attempt to gain a foothold below the level of $132. In this case, the bears can sell to the next support near $102. But when you consider that the momentum generated is output from the downward trend, the scenario of the «deep drawdown» seems unlikely.