On the cryptocurrency market appear optimistic mood, as popular coins have good hopes for a turn in favor of growth. It is important to note that many of cryptocurrency has transcended descending trends, and judging by the growth in market capitalization, this is just the beginning.
In continuation of the analysis of the market, we note that may have proved difficult after a promising April. Despite the overall positive news background may, sales remained the center of attention, and the attempt by some investors to change the situation in favor of the rising was a fiasco. Now the situation is more significant than the permanent efforts of the traders to change the situation in favor of growth during may, the market reversal was near the base of the April momentum. Technically, the market reached a local bottom and it is time to buy. However, another portion of negative news background can activate the bears.
As of last week, special attention should be paid to the National Assembly of South Korea. Legislative body of the country is launching a campaign for the lifting of the ban on ICO. This news came as a driver of growth in the cryptocurrency and almost turned the market from critical levels of support. Becomes more constructive and the position of other regulators.
Now technical analysis:
BTC/USD: reversal signal
Bitcoin (BTC) shows the consolidated movement in the trading range $7870 — $7150. In addition, the price chart is almost out of the framework of the downward trend, which started in early may. It is also seen that the «digital gold» could not break down important support level, and this in turn additional signal in favor of the bulls than the bears. Therefore, based on the formed technical pattern, we can conclude that soon can receive good signals to buy, at least, the focus can be to achieve resistance near $7870.
The wave count Elliott says it is willing to complete a corrective wave 2. If the price will confidently overcome the resistance level around $7870, then we will start to the formation of a new momentum. In case of realization of such a scenario opens the prospect of reaching the previous high around $9890.
However, we should not forget about risks on the basis of a news background. In case of breaking support at $7150 bitcoin could fall to next support of $6500.
ETH/USD H4: there will be a new growth phase
The ether (ETH) takes the clear signs of a reversal, the price chart failed to gain a foothold below the support around $540. Also seen a clear rebound from the support level of a descending tendency, and it supports buyers in the rising air. In addition, there is a consolidation in the trading under $640 – $540, in the case of a new wave of growth opens the prospect of reaching the resistance level at around $640, followed by its breakdown.
As for the Elliott waves, the chart shows a clear attempt to turn, and thus hints at the end of the second corrective wave. If during the following weeks there will be a new wave of growth, then the focus will be achieving a level of around $717.
In case of realization of a negative scenario can be testing support around $540, because schedule prices have not actually gone beyond the downtrend.
LTC/USD H4: first resistance passed
Litecoin (LTC) has shown trying to exit this decreasing trend is also visible out from the trading range of $125 — $109. In addition it is clear that the «digital silver» oversold, so it is logical to expect a new wave of growth. If such a scenario happens, then we can expect to reach the next resistance level at around $140 c and subsequent fixation in higher trading part of up to $156.
If you look at Elliott wave, corrective wave 2 came before the Foundation of the impulse wave 1, and struck her. This is an important signal, because there is no reason to believe that litecoin will continue a downward movement. Only after strong breakout $109 opens the prospect of further declines.
XRP/USD H4: resistance in the neighborhood of $0.6436 passed
At this time, ripple (XRP) litecoin holds above, the limiting level is around $0.5675. Like litecoin, this cryptocurrency out of the framework of the downward trend that, technically, hints at the reversal of the price movement of an asset. In the case of the positive scenario is expected to achieve resistance near $0.7632 followed by fixing in a higher trading limits. In this case, it is possible to expect development of the third impulse wave on wave theory Elliott.
In a continuation of wave I want to highlight the fact that a corrective wave 2 was unable to reach the bottom of wave 1, and technically it suggests a reversal. However, we should not forget about the risks. In the event of a further reduction in ripple can break support around $0.5675. Then open the prospect of securing lower trade framework.
DSH/USD H4: close to the breakdown level
Dash (DSH) repeated trading dynamics of ripple’s and approached the base of the previous wave. Now digital currency is at a crossroads. It is important to note that in case of breaking the resistance level of $322 will be a good signal for further growth. However, the price chart has almost gone beyond a downward trend that, technically, alluding to the bulls ‘ priority.
As for Elliott wave, wave 2 tested the basis of wave 1, and in the case of a steady turn we can expect a new wave of growth. If a new purchase, then wave 3 can reach such levels as $390 and $463.
If the news background will be negative and create pressure on the most capitalized of the coin, then dash to test support at $280.