The past week has increased the pessimism in the market of cryptocurrencies, and the new portion of negative news led to a wave of sales among market participants. «Bulls» are unable to resist significant amounts on sales, so the entrance of cryptocurrency «over the edge» in lower trade framework was imminent.
Market capitalization during the week moderately decreased, and almost every cryptocurrency you could see the same scenario. At the end of the week the value of the market amounted to less than $400 billion.
The news lately has been moderately negative, and even a little controversial. It is known that mark Zuckerberg who stated that it wants seriously to examine the blockchain and cryptocurrency, suddenly banned the advertising of this industry in Facebook. In particular, ICO and cryptocurrencies were assigned to “deceptive advertising” because of the large number of fraudulent projects.
The focus of South Korea was the beginning of the prohibition of anonymous transactions on cryptomeria. Also not pleased with the speech of the Finance Minister of India, during which officials stated their clear position to hinder the development of cryptocurrencies in the country. Recall that India is one of the largest and most important centers of development of blockchain.
Summarizing news background last week, it is important to understand that the industry is constantly evolving. Successful testing and launch of an increasing number of nodes Lightning network adds value to the bitcoin market, despite the rumors, the irony of cryptocaryon and speculation. In addition, are development on the Ethereum blockchain, in particular, was successfully tested the first stage of the Protocol, Casper. Important positive news of the last week was the statement from Samsung about the launch of ASIC chips for mining, although the customer remains unknown.
Now technical analysis:
BTC/USD H4: when the reversal?
Bitcoin (BTC) is part of a downward trend, and while there is a strong signal to the output. In the case of continued strong sales from market participants, it is possible to expect the achievement of such supports as $6870 $5577.
Wave analysis suggests that the decline may still be relevant. The wave broke above the important level near $8000, and this suggests that the downtrend continues for bitcoin.
A positive scenario for “digital gold” is a return in the scope of trade $8000 — $9963.
ETH/USD H4: the correction continues
The ether (ETH) practiced the movement on the Elliott waves, forming a corrective wave B. After that throughout the week, there was a clear formation of the driving wave in five waves. At the moment, the strong price support at around $761. In addition, the price chart within the downtrend, which forces the bears to continue to sell the broadcast.
In the case of the positive scenario, and this is another test and break of resistance near $1000, you can expect to consolidate in a higher trading under $1150 — $1000.
LTC/USD H4: the output of trend
Litecoin (LTC) after reaching a weekly low of confidently turned around and almost made it to the upper border of a descending tendency. Strong resistance is around $150. Trading history shows that lower this barrier traders did not want to sell, so the “pause” vs growth seems logical. However, if there is new growth and the breakdown of this level, then you can expect to achieve the next level of resistance near $194.
In case of realization of a negative scenario, it will test support at $136 and $107.
XRP/USD H4: still in correction
Ripple (XRP) is located within a downtrend channel that constrains the price chart support around $0.6555. In addition, from the perspective of Elliott waves show the development of wave C, and this in turn implies a further decline. Therefore, a possible target next week, may be the achievement of support in the neighborhood of $0.6555, in case of breaking this level would open the prospect of achieving the following objectives in the range of $0.2724.
In the case of self-purchases on the part of market participants, may be the breakout of the resistance around $1.1250 c subsequent consolidation in the trading under $1.6166 – $1.1250.
DSH/USD H4: soon exit the trend
Dash (DSH) was established to lower trade under a $688 — $453. After Bouncing from the support level of around $453 was an attempt to reach resistance at $688, but this attempt was not successful. However, the price chart within the downtrend, and only a confident break of resistance will allow to hint for a way out of trend.
If sales continue on the part of participants of the market, then we can expect another test of support near $453.