Over the last week, it was possible to observe diverse dynamics of trading on the cryptocurrency market. On the one hand, pressed the «bears» and «bulls» with large volumes did not allow the market to sink to the bottom.
Total market capitalization is below $600 billion is not happy traders, this suggests that there is no more faith among buyers to invest in promising crypto-currencies. At least, it looks like a pause or lull before the storm. Does not exclude the impact of the Chinese New year and negative news background. It is known that China intends to take drastic measures to regulate and to introduce a number of prohibitions on the OTC market. Therefore, the current situation is likely temporary. At least from the point of view of technical analysis, there is currently no strong signals for further declines. It only remains to wait for news and the end of the season holidays.
The beginning of the week did not add optimism to market cryptocurrencies. It became known that the crypto currency exchange India has been under pressure from local banks. Later came another news that the IRS of India has sent notice to kriptosistem and traders.
Moderately positive is the message from South Korea. The national regulator has proposed a more democratic measures and went against the market, but with the condition that all traders must authenticate: user information exchanges must fully comply with their Bank data.
Now technical analysis:
BTC/USD H4: reverse signals
Bitcoin (BTC) following the uncertainty of last week still showed consolidation above $11 000. The prospect of peaking at around $12 759. It is important to note that the breakdown of this resistance will strengthen the “digital gold” at higher price levels. At least next week may be relevant for such a price range like $12 759-$15 378.
In terms of Elliott waves, the expected development of the driving wave 1 as part of the latest wave found its end in the region of $10 000.
However, we should not forget about the risks. In the case of the implementation next week of a negative scenario, we can expect testing of the cryptocurrency supports $11 000 $9 300.
ETH/USD H4: trend is up
The ether (ETH) is within a rising trend, a strong signal in favour of growth is the breakdown of local maximum in the neighborhood of $1157. Based on the current situation, next week we can expect consolidation in trading such as $1157-$1426.
From the point of view of the Elliott wave theory, formed the third impulse wave, which promises to be the longest pulse. Therefore, the aim next week is a maximum in the neighborhood of $1426.
In the case of correction with levels achieved, we can expect testing support at $1020.
LTC/USD H4: ready to turn
Litecoin (LTC) is kept steadily in the trading under $195 — $165. Another attempt to overcome support level of around $165 not successful, connect buyers and thereby kept the cryptocurrency in this trading range.
Elliott wave say about the end of the correction formation A-B-C since the truncated wave 5 showed completion much sooner. Thus, the breakdown of the $195 and the output of the downward trend will give a signal to the formation of a new impulse wave.
XRP/USD H4: takes a pause
Ripple (XRP) stopped near support at the $1.1205. Despite the trading dynamics of other cryptocurrencies, this coin showed the greatest weakness. In addition, the price chart has formed a figure continuation of the trend of “Vympel”. As soon as the output generated from the consolidation and reversal from the support 1.1205, you see a good buy signal.
Like other cryptocurrencies, correction within the A-B-C is completed. At this point, the focus may be movement in the third impulse wave with targets such as $1.6065 and $1.8803.
DSH/USD H4: soon exit the trend
Dash (DSH) inhibits the resistance at around $793. A break of that level could signal the way out of the current downward trend. At least, it is possible to consolidate in such trading as part of the $950 – $793.
It is also important to note that each subsequent minimum, which was formed this week, higher than the previous one, so technically it hints at the growth of the coin. Therefore, the positive scenario for the breakdown of the $793 looks likely.