While the community still sees cryptocurrency in two ways, this week was dominated by the versatile dynamics of trading. The impression that the market is teetering on the brink of a balance between «bulls» and «bears,» and technically it looks like a positive signal, because after a phase of reduction for two months can form a new growth phase. Watching the course of trading last week, we can conclude that the way is paved for new purchases.
As for the news background, it was moderately positive. Oriental weighted was the statement from the Central Bank and the financial regulator of Singapore that the ban of the cryptocurrency will not happen. While the regulator said it will study the market for risks.
Japan once again showed the intentions to protect captainvalor from fraud. It became known that the regulator will conduct inspections of the cryptocurrency exchanges on the security, starting this week. And the government of India until the end of March this year, wants to develop normative documents for regulation of cryptocurrency.
Now technical analysis:
BTC/USD new chance for reversal?
Bitcoin (BTC) could not overcome an area of resistance near $9341, and then slightly adjusted. At the moment, the limiting level is around $7545, its possible a breakout will give a strong signal that the “digital gold” will go further in the direction of the downtrend. However, the support around $7545 this “psychological barrier” that keeps bitcoin from a new round of panic.
Wave analysis suggests that can begin a new phase of upward movement. At least you can see the formation of impulse wave 1 and wave 2 are possible. If the implementation of a positive scenario, and it break the downtrend resistance, then we can expect the development of wave 3 in order to $12770.
ETH/USD H4: a new impetus
The ether (ETH) could not overcome the resistance level of around $905. At the moment seen strong consolidation in the trading under $905 — $800. However, in the case of the positive scenario, and it’s puncture resistance in the neighborhood of $905, you can expect the development of impulse wave 3 in order to $1000.
In terms of Elliott waves, the break of the trend resistance would open the way for momentum. Also, do not forget that the air is still within the downtrend and the breakout support around $800 will trigger the «bears» continue to work on the slide.
LTC/USD H4: still in trend
Litecoin (LTC) has once again tested resistance near $160, and attempt to break not successful. Like other cryptocurrencies, “digital silver” was corrected after a week of growth. Inhibits the price chart support around $136, and if this level will be new growth, then you can expect puncture resistance of the downward trend. Technically it will be a signal in favour of growth, as output from the trend promises only buying on good volume.
It is important to be prepared for the negative scenario, because the potential breakdown of support at $136 will only increase sales and open the target to fall to $107.
XRP/USD H4: the output of trend
Ripple (XRP) is within the rising channel, there are also clear signs of the withdrawal from the previous trend. If the next attempt to break through the $1.1250 will be successful, then we can expect consolidation in the trading under $1.6166 – $1.1250.
In terms of Elliott waves, suggests the formation of a driving wave 3. But such a scenario can be realized only in case of breaking the resistance of $1.1250. In the case of strong sales on the part of market participants might be testing the support around $0.6576.
DSH/USD H4: the output of trend
Dash (DSH) is not reached resistance near $688, but it was formed a countertrend move. If you implement a positive scenario and cryptocurrency will overcome the level of $688, then it will be a good signal to the output of the generated trade framework.
Like other cryptocurrencies, in terms of Elliott waves has created the preconditions for the formation of a new phase of the upward movement. Therefore, the breakdown of the $688 will be proof in favor of a new wave of growth.
In case of realization of a negative scenario on the part of market participants, we can expect another test of support near $453.