This column will provide our readers a basic update on what they can expect from the leading cryptocurrencies in the upcoming week.
This is a weekly column. For more frequent updates on markets, join Sumnesh’s telegram channel Price Action Trading.
BTC finally broke out of the wide range it had been holding for several months now and has gained upside momentum by breaking the crucial resistance at 9905 USDT (mentioned earlier).
The upcoming week will tell how far BTC goes before retracing even as the trend remains bullish. It will also show if alts breakdown completely or do they bounce back from support levels.
BTC/USDT (Daily Chart)- Breakout
BTC/USDT finally broke out on the upside from the range mentioned in previous few updates (9075-9905 USDT). The cryptocurrency has gained strong upside momentum.
BTC has finally confirmed uptrend and has broken from the resistance level at 9905 USDT. The volumes are also rising steadily after a dip in past few weeks.
The immediate support for BTC lies at 9905 USDT and the resistance level is 10854 USDT.
Traders should use pullbacks to build long positions slowly as long as BTC maintains uptrend.
ETH/BTC (Daily Chart)- Pullback after breakout
Along with BTC, ETH/BTC pair has also broken out after a long time of staying within a range and has established strong uptrend on daily charts.
ETH continues to surge ahead for last few weeks and has gained momentum this week as BTC supports the up move too. The coin is now pulling back and the only concern is whether other alts going down will pull ETH along with them or not. ETH does not look as strong on charts as BTC does.
The immediate support for ETH/BTC lies at 0.029865 BTC whereas the immediate resistance levels are around 0.033921 BTC region.
Traders should build small long positions near support region and should have adequate stop losses.
XRP/BTC (Daily Chart)- Rejected from resistance (again)
XRP/BTC pair was unable to breakout from the resistance level mentioned even in its second attempt. Prices have retraced from the level just as other alts are sliding down.
XRP prices seemed to be rising until earlier this week but were not able to successfully breakout from the resistance levels and retraced from there. Interestingly, the prices now seem to be breaking the small range it had formed over last couple of weeks on the downside this time.
The immediate resistance levels are around 0.00002220 BTC for the XRP/BTC pair.
Traders should avoid trading this cryptocurrency until there is a confirmed breakout with daily close above the resistance level.
ZIL/BTC (Daily Chart-SHORT)- Potential support breakdown
ZIL/BTC price has decreased dramatically over the last month after a dream run upwards. The confirmation will happen only once there is daily close below the support.
The breakdown happens after a change of trend that happen earlier this month. The downtrend was confirmed after ZIL gave a lower high and lower low on the daily charts as can be seen in the attached image.
The immediate support for ZIL/BTC lies at 0.00000174 BTC whereas the immediate resistance levels are around 0.00000213 BTC region.
After a successful breakdown from the support, the prices may slide lower and the next strong support is only at 0.00000119 BTC levels. The breakdown however gets confirmed only when ZIL gives daily close below the current support.
Traders should wait for breakdown of the support before entering short positions on the cryptocurrency.
Disclaimer: The views and opinions expressed above are solely for educational purposes and should not be taken as investment or trading recommendations. Readers are advised to do their own research and due diligence before making any investment or trading decision.