The last week has pleased participants of the cryptocurrency market as bitcoin has shown a sharp reversal in growth, and behind him rushed oldoini. Now we can see the superiority of «bull», because technically a cryptocurrency left behind important support levels and trading ranges.
Market capitalization has stepped over the $300 billion, and it represents speculative interest of market participants to further purchases. Therefore, in the case of strong growth of the cryptocurrency market next week it is possible to prevent the increase of capitalization to $400 billion and above.
News background, like a week earlier, was in a moderately positive way. Analysts ‘ forecasts on the growth of bitcoin and the end of the tax period only pushed traders to buy more than to be in the side. In addition, it does not eliminate the geopolitical aspect, where the escalating conflict in Syria and a new wave of sanctions aimed at Russia (the»black Monday») can cause market participants to seek «safe haven» in the form of cryptocurrency. And finally: cryptomatic George Soros intends to trade cryptocurrencies. Recall that his Fund, Soros Fund Management currently has assets of $26 billion.
Now technical analysis:
BTC/USD: exit of the downtrend
Bitcoin (BTC) established in higher trading limits, price chart confidently broke above the important resistance level near $7455, technically gave a positive signal. At the moment a strong resistance level is around $8100. It is obvious that the market participants hold wait-and-see position. This situation is quite logical since the bitcoin under speculative trading is overbought.
It is important to note the output from the framework of the downward trend – this is an additional signal in favor of the formation of a new phase of the uptrend. If there is another wave of growth, then opens the prospect of achieving the next level in the neighborhood of $9200.
From the point of view of the Elliott wave theory, a new phase of the upward movement in the framework 1 2 3 4 5. In the second half of last week generated momentum within the wave 3, and if there is a break at $8100, then it is possible to expect continuation of purchases by market participants in order to $9200.
The negative scenario for bitcoin is testing support around $7455. This level has been repeatedly tested, therefore has a greater degree of importance.
ETH/USD H4: forming a resistance
The ether (ETH) as bitcoin crossed an important resistance and entrenched in a higher trading limits. At the moment, resistance in the neighborhood of $513, and this is a positive signal, since its break will generate a new wave of growth. In addition, seen out of the framework of the downward trend, this in turn additional signal in favor of new growth. It is also seen that currently live locally overbought, therefore, a slight consolidation.
Since the second half of last week, a new impetus, in terms of Elliot waves. Therefore, the breakdown level of $513 will give a signal to continue the momentum. In case of realization of such a scenario, the focus will be the development of impulse wave 3, with the goal to $633. In the case of a negative scenario, can be seen testing support at $450.
LTC/USD H4: still in range
Litecoin (LTC) in comparison with other cryptocurrencies were weak and still is in the shopping part 107 – $ 140. It is also important to note that the price on the chart close to the resistance level in the area of $ 140, this level is near the resistance line of descending trend. In the event of breakdown, the prospect of securing higher trading framework, with a promising goal in the area of 174 USD. However, it is worth noting that the level of resistance within 174 coincides with the Fibonacci 0.786.
In terms of Elliot wave, the downside momentum has shown a clear intention to stop because the generated stub at its base. At the moment there are grounds for the formation of a new impetus in the framework 1 2 3 4 5. If there is a break of key level at $140, then there will be momentum in the third wave. In case of realization of a negative scenario is to test the support level of around $107.
XRP/USD H4: a new range
RIPL (XRP) were fixed in the area of resistance $0.7110 and walked out of the downward trend, which is positive signal. However, like other cryptocurrencies, the price chart drives ripple slightly adjusted after the formed maximum. The cryptocurrency is logical because in the framework of speculative trading in asset is overbought. The following script drives ripple is puncture resistance and area 0.7110, and if that happens, then there will be steady consolidation in a higher trading under $0.7110 to $0.5675.
In terms of Fibonacci levels offer a long-term goal, where the price chart can reach is the level of 0.618, it coincides with resistance at $0.8707. According to the Elliott wave theory, if there is a steady output from the trend, then there will be the formation of a new phase of the upward movement. Thus, the breakdown of the $0.7110 generates new impulse wave.
DSH/USD H4: goal $445
Dash (DSH) fixed above the support level at $340, also was out of the weekly range thus indicating the end of the downward trend. At the moment, the prospect of movement to the resistance level at $445, and the reserve to this level is still there. In addition, support below which the price chart is not reduced, is the «tactical Outpost». The history of auctions shows that market participants are repeatedly tested this value, so this level has a greater degree of importance.
In terms of Elliott waves, ended the formation of the last wave within the composite correction Y. you can see the upside momentum in the framework 1 2 3 4 5. In addition, it is clear that a reversal pattern «double bottom» or «failure swing» has fulfilled his signal. This serves as an additional impetus for further growth.