In light of the moderately positive news throughout the week, the cryptocurrency market is still corrected. It was not panic sales, followed by large amounts. The market behaved quite skillfully and predictable: after the sale of the coins it was possible to observe the uniform the mercy. In addition, virtually all cryptocurrencies are unable to overcome the levels of price supports. This was another argument for the fact that market participants do not want to work seriously on the slide.
The market capitalization stays below the $500 billion that may psychologically deter small investors and the bulls (traders who trade on increase). Therefore, a good portion of positive news could trigger a new wave of growth, and will strengthen the positive market capitalization above $500 billion Recommend you to pay attention to the news reports, that it could become a growth driver next week.
As of last week, it is not excluded that they may affect the course of trading in the near future. Not once observed inertia cryptocurrency market on the publication of news, based on the fact that the market is still quite young.
So, the most important event last week was a report from the European Commission on the regulation of the cryptocurrency market Central banks. This was followed by the news that the South Korean authorities are ready to support «normal trade» digital currencies. Major crypto currency exchange Japan want to combine in self-regulatory organization after hacking SopCast and recent inspections. Also last week introduced support for Segregated Witness on Coinbase and Bitfinex.
Of the negative news of the week, you can highlight the message that more than 34 thousands of smart contracts on the Ethereum blockchain can be vulnerable to attacks.
Now technical analysis:
BTC/USD: correction is not a reason to panic
Bitcoin (BTC) adjusted to price support near $9364, while this level is quite important, because trading history shows repeated testing. We can say that this is a tactical level that it may start a new wave of sales. Therefore, the negative scenario next week is reaching support at $7842. If you look at the situation from the point of view of the Fibonacci levels, it is just in the heart of the «Golden section» 0.618.
Elliott wave suggests that is still ongoing impulse movement, there is development of bitcoin in the framework of a correctional wave 4. If the implementation of a positive scenario in terms of wave 5 (wave growth), it is possible a breakout of the $12188 subsequent gravitation to $14424.
ETH/USD H4: still in downtrend
The ether (ETH) this time surely turned from the psychological level of $1000. At the moment constrains the price chart support around $783. If you consider that the air is not out of the downtrend, technically one can expect a drop below the support of $783. So next week there remain risks of sales.
From the point of view of the Elliott wave theory, it is too early to talk about further reducing. In the case of the positive scenario, we can expect a breakout of the trend line with the subsequent formation of impulse wave 5. In this case, the first target will be around $980 -$1000.
LTC/USD H4: «digital silver» in trend
Litecoin (LTC), in spite of other cryptocurrencies, is the framework of a new upward trend. If the price chart in the near future will overcome a local maximum in the neighborhood of $218, then we can expect achievement of the resistance in the neighborhood of $238.
Stretching Fibonacii coincide with the levels of $271 and $307, so the priority objectives in the case of growth already formed. Terms of Elliott waves, yet, there was the development of impulse wave 5. Don’t forget about the risks in case of realization of a negative scenario. It is possible to return to support at $180 and below.
XRP/USD H4: in the range
RIPL (XRP) constrains the support in the area of 0.8509. After testing this level the price chart is still holding above. A positive signal is consolidating in a trading range 1.1250 — 0.8509 dollar. This suggests that after maintaining the pause among market participants can expect a new wave of growth.
The positive scenario is the achievement of the resistance in the 1.1250 area and entrance to higher trading framework in the direction of a new upward trend. The alternative scenario is the achievement of the 0.5629 dollar.
DSH/USD H4: out of the triangle took place
Dash (DSH) out of the formed triangle. At the moment, the limiting level is around $550, and in the case of self-purchase can be expected the first objective in the neighborhood of $686.
In terms of Elliott wave, has formed a corrective fourth wave, so we can expect the development of the schedule of prices in the framework of the fifth wave. Priority targets for this scenario is around $795 and $950.