Last trading week was marked steady sales. Almost all cryptocurrencies accelerated decline, despite the fact that the previous week was a good signal for a reversal. Market capitalization of crypto-currencies on a Sunday afternoon amounted to $255 billion, thus the psychological mark of $300 billion has been passed and is coming next — $250 billion. Due to the current situation there is a pessimism and uncertainty in the revenge of the bulls.
There are fears that due to the existing negative news, namely, constant pressure regulators for the cryptocurrency market, sales can stay in the spotlight. Despite the encouraging messages of experts on the termination of the reduction remains the likelihood of the opposite situation.
An additional «shout reduction» was the message on the closure of the service LitePay. Earlier in February, it was reported that the Litecoin Foundation and LitePay cooperate so that users can have the ability to pay litecoin for goods and services using davetoo cards in LTC. In turn, this was a good example for other developers. Now Charlie Lee had to apologize for the fact that the hope of cooperation with LitePay, unfortunately, did not materialize.
Only the end of the day April 1, pleased supporters of the cryptocurrency. By setting a new low of the week around $6450, bitcoin went up sharply and to the end of the day it has traded above $6900, recouping the losses of the day. The bulls showed that they still have resources, and the fall of the cryptocurrency market is increasingly slowing down, suggesting a possible rebound.
Now technical analysis:
BTC/USD: a pause vs a decline?
Bitcoin (BTC) in the four-hour period continues to go in the direction of the downward trend. The schedule of prices have tested the support around $6500, thus showing a temporary traders ‘ reluctance to sell «digital gold». There is currently consolidating in a trading range of $7200 – $6500. It is possible that this range can be decisive for the first cryptocurrencies, because major sales below $6500 can provoke another wave of pessimism in the market.
In terms of Elliott waves still formed a descending impulse movement. The last fifth podwodna showed tension and suggests that bitcoin is oversold. In addition, it is important to note that the momentum is in the downward trend. The breakdown level 7200 can give signal output from the trend. However, the chart shows oversold, therefore, in the speculative trading it is possible to expect local reversals in favor of growth, talking about the approaching end of the fall.
ETH/USD H4: downtrend
The ether (ETH) on the basis of what is in the downward trend to gravitate to the next support now at $340. It is important to note that the negative scenario will be to reach next support at $173. In addition, it is seen consolidating in a trading range of $450 — $340, and if sales stop, then these levels may begin a turn in favor of growth. When you consider that the ether is oversold, technically formed from the levels we could expect a reversal.
Terms of Elliott waves, the sale can continue, because there are no signals at the output of the trend. Also, there was the development of impulse wave 5, and this is an additional argument in favor of reducing in the coming days.
If you look at the Fibo support at around $340 coincides with the Fibo level of 2.618. Technically, it is a strong signal that this barrier may be crucial to ether.
LTC/USD H4: near important levels
Litecoin (LTC) after a little shopping on Friday continued to show sales. The first objective where you can get «digital silver» is support at $108. If the sale will again remain in the spotlight, then open the prospect of reaching the next level in the range of $85.
Like other cryptocurrencies, digital silver is in a corrective subframe A-B-C, therefore, a new wave of decline is not excluded. Also see the finding chart in the extended downside, and this suggests that the cryptocurrency is oversold and you can expect a quick reversal.
From the point of view of the Fibonacci levels the price chart is near the level of 1.618, which is technically said about keeping the pause vs reduction. In the case of the positive scenario, there may be a level achievement in the area of $ 140 with subsequent fixation in higher trading limits.
XRP/USD H4: near Fibo level
RIPL (XRP) was fixed near the support of $0.4775, which is a moderately positive signal, at least there’s a new wave of decline. Near this level, it is possible to consolidate the movement and reversal.
Like other cryptocurrencies, there is stretching of the fifth and final b according to the Elliott wave theory. This, in turn, suggests that the ripple is oversold and it’s time for him to turn around. If such a scenario is realized, then we can expect an attempt to consolidate in a higher trading under $0.5675 to $0.7110.
There is currently testing the 1.618 Fibonacci level from the base of the trend (tensile Fibo). This level is an important signal, since the breakout of it will only increase sales, and turn from him may cause traders to buy in spite of the downward trend.
DSH/USD H4: soon the new support?
Dash (DSH) is surely reduced to support in the neighborhood of $235, and a power reserve of up to that value is still there. In addition, the purpose of the reduction coincides with a Fibonacci level suggests great importance. Pushing to sell the dash being in the framework of the downward trend, which, technically, tells about being in the sales phase.
If you look at the situation from the point of view of wave analysis, we see the tension of the last subwave 5. This suggests that the cryptocurrency is oversold and can be expected for a speedy reversal. Therefore, the positive scenario for dash is testing resistance at $382.