A senior analyst at RoboForex shares his insights into the future scenarios for Bitcoin, Ethereum, Litecoin, EOS and Bitcoin Cash price movement.
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 market of digital assets keeps growing confidently. Once again, we can see the main coins test the resistance levels, however, the bears have yet failed to provoke any serious decline. That is why the current levels can be easily broken out soon. At the moment, there are no serious reasons for a descending correction. However, if the decline does happen, it will only provide the buyers with conservative levels. The pressure from the bulls remains really strong, and after a minimal decline the market restores quickly and rushes at new heights. An attempt of growth from the current levels should not be excluded: with the buyers so aggressive, the market may soon test the local highs.
On D1, the quotations of the cryptocurrency are stuck in another resistance area. There is a risk of a minor correction with a test of the broken border of the descending channel at $9195. AS we see, the RSI values do not leave the overbought area, which signifies pressure from the buyers. However, the development of a correction will give even more strength to the current ascending impulse. The possibility of further growth will also be supported by a test of the support line on the RSI. At the moment of the correction, the prices will also test the Moving Averages, which make provoke a bounce and further growth. The MAs have already crossed in favor of the bullish trend. The conservative area for a good bounce is right between them. The next aim of the growth will be the area of $12400. Here lies yet another resistance level. The scenario, positive for the bulls, may no longer be valid if the prices fall and secure under $8355, in which case we should expect further declining to $6875.
On H4, the prices are also growing. Here, we can see constant bounces off the MA, the prices eve fail to fall below the upper line. Such movements also indicate the strength of the bulls. The RSI values are pushing off their resistance level, which also indicates the presence of a good ascending impulse. As long as the quotations re growing inside the channel, further growth should be expected. The first sign of the end of the growth will be a breakout of the lower border of the channel and securing under $9195, in which case we should expect further correction.
The ETH quotations keep growing aggressively. By now, the prices have reached the upper border of the descending channel. There is a risk of a correction to $225. As we can see, this area has already been a strong resistance level. Thus, until the prices escape the channel, we should expect an attempt of a descending correction, and after the escape – further growth. The aim of the growth may be at the local high of $360. This scenario will be confirmed by securing above $260. The scenario may be canceled by a decline below $225, in which case we should expect further descending correction to $155.
On the smaller timeframes of the Ethereum, the bulls are also aggressive. As we may see, after a test of the support line on the RSI, the prices went further up. The quotations are also pushing off the MAs – all these factors indicate a strong bullish trend. The nearest support area is at $225, the lower border of the ascending channel lies here as well. So, as the main trading idea, we should expect a test of the border of the channel and further growth with the first aim at $287. The scenario might be canceled by a breakout of the lower border of the channel and securing under $200, in which case the aim of the decline will be at $155.
The buyers have pushed the Litecoin to a new resistance level. As we can see, with a breakout of this are, the next goal lies at the area of $100. Such aggressive growth will be supported by a test of the ascending trendline on the RSI. The prices keep pushing confidently off the signal lines on the Ichimoku Kinko Hyo, which indicates a bullish impulse. The growth will be confirmed by a breakout of the upper border of the descending channel and securing above $90. The scenario of growth may be canceled by a very strong decline below $50. In this case, the lower border of the Cloud will be broken, which will be the end of the uptrend.
On H4, the prices keep moving inside an ascending channel. The trend remains rather strong on smaller timeframes as well; the prices are above the cloud. The nearest support level is at $72. That is why we should not exclude a correction to this area before further growth. An additional signal supporting the growth will be a bounce off the support line on the RSI. The scenario may no longer be valid if the lower border of the Cloud is broken out, and the quotations secure under $72. If so, we should expect further declining with the aim at $56.
On D1, the EOS quotations have escaped the descending channel. The MAs have crossed, confirming further growth. Te next aim of the growth may be the area of $6.70. The nearest support is at $4.15. As a mid-term trading idea, we may expect a minor correction with a test of the broken border of the descending channel near $4.35. From there, we might expect further growth. This movement will be supported by a test of the descending trendline on the RSI. The scenario may be canceled by a decline below $4.05, in which case we should expect a decline to $2.35.
On the smaller timeframes, the RSI values are squeezed inside a Triangle pattern. A breakout of such a structure upwards will send the quotations even higher, with the potential aim at $6.70. The growth may no longer happen if the lower border of the ascending channel is broken out, and the quotations secure under $4.45. In this case, there is a risk of a strong descending correction. However, while the prices remain inside an ascending channel, we should expect further growth.
The buyers are trying to secure above the upper border of the descending channel. In the case of successful growth to the level of $520, we should expect further growth above $750. This scenario is also confirmed by a bounce off the support line on the RSI. The scenario may no longer be valid if the quotations fall below $375, which will mean a breakout o the lower border of the ascending channel and further correction to $230.
On H4, the quotations keep moving up inside the channel. The current structure of the price movement is symmetrical, meaning further growth with the aim at $595. A strong signal supporting the development of the ascending impulse will be another bounce off the trendline on the RSI. The idea will be confirmed by a breakout of the resistance area and securing above $500. The positive scenario may be canceled by falling and a breakout of $465, which will mean an escape from the ascending channel and further declining.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.