Bitcoin
(Bitstamp:BTCUSD 1h)
Following a second set of bearish divergence on both the RSI and MACD, Bitcoin broke down hard. This looks to confirm the continuation of the bearish trend as we approach the $6550 support. Just above this, there is also an ascending support level to watch out for, which marked the bottoms of previous bounces.
The volume prior to the current drop was also telling, a climb on such low volume after the break of a major resistance level. The market wasn't comfortable with moving into a new bull run yet.
Interestingly, if you redraw the descending resistance on a linear chart rather than log, the current bottom is sat right above it the major resistance. This means that a bounce from here would instead be viewed as a strong confirmation for a bullish trend, rather than a bearish pullback. This could be something to keep an eye on in the next few hours.
Ethereum
(Bitstamp:ETHBTC 2h)
ETHBTC made a strong break of the 0.05901 resistance on good volume, reaching as high as 0.06029. It now appears to be making a bullish pullback. This is a very strong sign for ETHBTC after its longer term pullback, and we should be provided with good buying opportunities soon.
As always, it best not to get caught up by FOMO, and wait for a good consolidation zone to present itself. If we can hold another test of the 0.05800 support, we might form a very attractive secondary consolidation. However, for now, I still recommend watching from the sidelines until a secondary support has been confirmed.
Bitcoin Cash
(Poloniex:BCHBTC 2h)
Bitcoin Cash is still climbing after its bullish divergence. At the moment this looks to be a bearish pullback ready for a retest of lows. However, if we can pullback to a higher low, this may finally turn bullish.
Volume remains around the levels of the drift downwards, if a tad lower. This makes it harder to tell where the market is signalling. A significant increase in volume will be required to start a bullish reversal.
Litecoin
(Poloniex:LTCBTC 1h)
Litecoin held the 0.01663 support and looks to be respecting the horizontal channel of the last consolidation (between 0.01663 and 0.01717). Its hard to call the market direction at the moment, so we're waiting for a few more failed tests of support before we look to build up any bullish positions.
Monero
(Poloniex:XMRBTC 4h)
After testing the 0.02400 support, Monero is (just about) back within its bullish consolidation zone. As with LTCBTC, we're still waiting for a few more tests of support before we can call the market direction. If we make another bounce from 0.02400, we'll be able to adjust the consolidation zone a bit lower.
Disclaimer
I will do my best to give unbiased, objective analysis, but I can make no promises about my accuracy.
All posts are based on my personal opinions and ideas and do not constitute professional financial investment advice.
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