Altcoins Price Analysis: The Coins May Decline
Over the past two weeks, bitcoin and other criptocurrencies, showed significant growth. The price of the first cryptocurrency increased from $ 9,300 to $ 11,500. However, since February 5, the price of "digital gold" began to decline and currently bitcoin is trading around $ 10,500.
On March 5, cryptocurrency market cap reached its seven-day high, and then it fell by 10.5% (from $ 474 billion to $ 425 billion).
It is possible to refer decrease in average daily volume to number of the most negative fundamental factors bitcoin transactions to a two-year minimum. It occurs against the background of obvious improvements, such as implementation of the Segregated Witness protocol by the major cryptocurrency exchanges and also gradual decrease in the commissions for transactions. The current bitcoin dynamics is also accompanied by lower trading volumes on the major exchanges.
On February 1, Ethereum price broke through the inclined resistance level and consolidated above it. Subsequently, the price met resistance in the form of a horizontal level of $ 874.95, which it failed to break through. Then the price broke low this level ($ 874.95) and broke through an inclined support level, after which a rather strong downward movement was formed.
Now the resistance act as inclined support level (the red line, fig. 1). In case of break the first target will be the support of $681,05 where the price can begin consolidation and form the upward trend again.
If the market has enough strength to rebound from support, the price may test the level of $ 874.95 again. In the case of break and consolidation above it, the price may meet the resistance above $ 979.80. Then the price may to claim about domination of bull moods in the market.
On February 4, the price broke through the resistance (the red line, fig. 2), but could not gain a foothold above it. As a result, a downward movement was formed.
At the moment, the price tests the support of $ 0.87, in case of breaking, you can expect the price to move to the level of $ 0.63.
In the context of wave analysis, it can be assumed that the price is in the correctional wave 2, after which the most impulsive wave 3 should begin.
There is factors forming wave 3:
- price rebounce from the level of $ 0.87;
- consolidation above the level of $ 1.08 (local maximum);
- consolidation above $ 1.18 (peak of the first wave).
The price may reach the level of $ 1.88 taking into account possible corrective movements.
On February 6, the price traded below the support. Then BCH/USD met with a support of $ 1134.96. In case of breaking through the last one, you can expect a downward movement to the level of $ 857.41.
If the price rebound from this level, an upward movement will be formed, the obstacles for which will be:
- the resistance level that acted previously as support;
- the resistance level (red line, fig. 3);
- the horizontal resistance level is $ 1767.66.
In case of breaking through these levels, we may watch to consolidation of the uptrend.
It is also worth mentioning the level of $ 2137.39, near which in the period from December 22 to January 12, there was increased volatility. Undoubtedly, this level is quite strong and its penetration will serve as an momentum for price growth.
There is the figure of the trend continuation "flag" on the chart LTC/USD. The upcoming upward movement may repeat the previous scenario of pulsed growth A (fig. 4):
The starting point for this movement will be the breaking of the upper line of the "flag", as well as the level of $ 233.69. At the same time, the first target will be $ 287.56.
If the lower low of the "flag" has broken, then the downward movement would be strengthened. The first resistance for him will be the level of $ 166.52. In case of breaking through and securing below it, the price may reach $ 103.24.
Since the coin has little history, the analysis will be conducted on a four-hour chart.
The price broke through the inclined level (the red line, figure 5) and was fixed below it:
At the moment the price is within the limits of its historical minimum. If the price can break through and consolidate below the support level of $ 0.26, then it will be possible to assert about the future continuation of the downtrend.
To form an uptrend, the price should be fixed above the sloping level (red line), and then above the horizontal resistance near $ 0.28. Only in this case it will be possible to assert about the strengthening of bullish mood for this cryptocurrency.