This column will provide our readers a basic update on what they can expect from the leading cryptocurrencies in the upcoming week.
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BTC gave a daily close above resistance zone of 11825 USDT on first day of this month and just when everybody thought it will finally breakout, the price crashed and has continued to do till today. ETH and XRP have also followed BTC in this fall and so have most of the altcoins.
The upcoming week will tell if BTC starts its downtrend again or will it bounce back stronger and will alts be able to survive this roller coaster movement of BTC.
BTC/USDT (Daily Chart)- Breakdown
After repeated failed attempts to break past resistance level mentioned in earlier posts, bulls finally gave up and bears pushed the price lower to current levels. The biggest concern for bulls is that the price broke through the strong support at 10854 in one go without any pullback.
BTC/USDT fall last week also resulted in the previous swing low being taken out and price decreased to even lower levels. The uptrend has definitely ended and it needs to be seen whether it will be a sideways movement or start of downtrend from hereon. There is no confirmation for either as of yet.
The immediate support for BTC lies at 9905 USDT and the resistance level is 10854 USDT.
Traders should wait for daily close below support level to enter small short positions with adequate stop losses. Traders should avoid having positional long trades for now.
ETH/BTC (Daily Chart)- Retesting support
ETH/BTC price fell dramatically after it briefly gave a daily close above resistance level mentioned last time. The price is currently struggling to stay above support level and may fall further if the support is not held.
ETH/BTC finally seems to have exhausted the one way upward movement it had started in early May this year. Although it still seems stronger than BTC on daily chart, bulls must be worried as the new swing low is below the previous one indicating a trend change might be on cards. There is no confirmation of trend change so far and a lower high will result in the same.
The immediate support for ETH/BTC lies at 0.033921 BTC whereas the immediate resistance levels are around 0.03826 BTC region.
Traders should avoid trading on either sides for now and wait for clear confirmation signal on charts through a daily close.
XRP/BTC (Daily Chart)- Downtrend resumed
XRP/BTC confirmed downtrend after giving two consecutive lower highs and lower lows. BTC price decline has not affected XRP as much as ETH so far but the cryptocurrency in itself looked weak for a couple of weeks now.
XRP/BTC tried to retrace twice in this downfall but ended up giving lower highs both the times indicating lack of strength in bulls and bears took control last week as price fell below the support on daily time-frame. Volumes are also shrinking after the one way rise earlier this year which was accompanied by spike in volumes.
The immediate support for XRP/BTC lies at 0.00002220 BTC whereas the immediate resistance levels are around 0.000024 BTC region.
Traders may enter small short positions on pullback to the above mentioned resistance level with stop loss in place and should completely avoid taking long positions until a trend change is evident.
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.
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