The past week in the cryptocurrency market has observed strong growth, but on Sunday the situation has changed. Despite the pullback of 5-7%, the most popular cryptocurrency still in the green zone within a week of growth. This suggests that market participants fixed profits, received during the week. However, while there is a strong signal to the fracture formed a rising trend, and, judging from the news reports, and energy there is no reason to sell crypto currencies.
With regard to the market capitalization of cryptocurrency, it is at the time of publication was $455 billion In the case of a new wave of speculative interest or important positive news, reaching the level of $500 billion seems likely.
If you pay attention to the news last week, I want to highlight a report from the International Monetary Fund (IMF), which indicates that cryptocurrencies do not threaten the stability of the world economy. And a giant like Goldman Sachs confirmed the intention in the near future to open a futures trading on bitcoin.
Now technical analysis:
BTC/USD: strong resistance
Bitcoin (BTC) in the framework of the uptrend. The price chart has reversed from the resistance level at $9906, indicating that the conditioning pauses against the grain. The focus is still the prospect of consolidation in a higher trading under $9906 to $11690 because the graph does not show signs of fracture of the uptrend.
It is also important to note that from the point of view of the Elliott wave fifth wave is formed, which indicates a further growth of the first cryptocurrencies. Therefore, consolidating above $9900, and especially overcoming the psychological level of $10 000 will only be an additional signal for bullish sentiment.
The following Fibo levels are in the higher range, thereby to indicate the purpose, where wtyf can reach in case of growth. In addition, do not forget the risks – in case of false breakout of the level of $9906 can expect a refund in the same trade frameworks, namely $9906 to $8400.
ETH/USD H4: the band formed
The ether (ETH) shows a steady increase after the breakout of the resistance level at around $780. Now we can see consolidation in the trading under $780 — $970, which once again indicates the willingness of traders to buy more. However, we should not forget that the ether is locally overbought, so a small bounce before the 780 possible.
Like bitcoin, ether forms the fifth impulse wave, so a purchase in the near future will be the center of attention. However, it is not necessary to forget about correction within impulse.
The Fibonacci extension levels successfully matched with $780 and $970, so following a sure goal, where the air can reach is the area of resistance $970 and the level Fibo 2.618.
LTC/USD H4: correction after growth
Litecoin (LTC) showed strong growth on the breakout of the resistance level of $173, and then turned around. In addition, the price chart has bounced from the support line of the rising trend, and it serves as a strong signal in favor of the formation of a new wave of growth from the point of view of the Elliott wave theory. Thus, another attempt to reach resistance at around $190, despite the correction, looks like quite a promising target for next week.
In terms of Elliott waves, as already mentioned, a new wave of growth in the framework of the fifth wave. The peak of this pulse movement just might be in the area of resistance $190. Fibonacci levels are near resistance levels, thereby stress the greater importance of long-term goals.
However, we should not forget that after strong growth in the traded asset may move. If such a scenario happens, then the first target is the support around $156.
XRP/USD H4: not in a hurry to grow
Ripple (XRP) was weaker than litecoin, stream and bitcoin price failed to reach the top at around $0.96375, while the reserve to this level is still there. At the moment you can see being in a trading range of $0.8230 to $0.9628, and it makes a ripple in the framework of speculative trading in the undervalued asset. Therefore is not excluded in short time a new wave of growth.
Supports the prospect of ripple’s growth and the Elliott wave theory. After end of a correctional wave 4, we can expect a new wave of growth. So the pair $0.9637 will give a signal to buy with a target of up to $1.0846.
In case of realization of a negative scenario, we can expect a return to support at $0.7632.
DSH/USD H4: in the range
Dash (DSH) repeated ripple’s trading dynamics – it is clear that market participants hold wait and see attitude against growth. In addition, the price chart is within a rising trend, and the range of up to resistance at $544 is still there. As a cryptocurrency, dash has continued after reaching the weekly high, so in case of breakout of the trend line can prevent the achievement of support at $463.
If you look at the situation from the perspective of Elliott waves, the center of attention, like last week, the development of the fifth impulse wave. In the case of breakdown of the maximum in the neighborhood of $544 can be further momentum with subsequent fixation in higher trading limits. In addition, when the confident purchases can open a target in the neighborhood of $636.