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 fake breakout above the resistance level at 10854 USDT and fell below it in yesterday’s global sell off which brought down prices across major stock and currency markets too, besides the cryptocurrency market. ETH and XRP followed BTC in this fall just as most other alts did.
The upcoming week will tell if BTC enters downtrend by giving a lower low by breaking the lower support or not and what happens to alts in this process.
BTC/USDT (Daily Chart)- Failed breakout
BTC/USDT rose last week after reversing from support but failed to breakout despite giving a daily close above resistance level. The price has retraced below the resistance and continues to fall.
BTC/USDT price has been declining steadily ever since middle of the last month. The price gave a lower high in the beginning of this month and the only confirmation left for starting of downtrend is to get a conclusive lower low. The volumes have remained sideways for most of this while and bulls need to be worried at the moment.
The immediate support for BTC lies at 9905 USDT and the resistance level is 10854 USDT.
Traders should wait for price to pullback to resistance level or give daily close below support to enter small short positions with strict stop losses and should avoid long positions till there is clarity on change of trend.
ETH/BTC (Daily Chart)- Downtrend may restart
ETH/BTC has been declining since start of the month and joined BTC in the fall for last two days. The price failed to sustain above the resistance level for more than a few days and the volumes also reduced.
ETH/BTC has given multiple lower highs in past few weeks and a close below previous swing low will lead to start of downtrend on daily charts. The confirmation for downtrend remains to be seen with a new lower low formation. Bears have control on the prices at the moment and may take the prices lower.
The immediate support for ETH/BTC lies at 0.029865 BTC whereas the immediate resistance levels are around 0.033921 BTC region.
Traders should use pullback to resistance levels to build short positions with adequate stop losses in place and avoid taking long positions for now until the previous swing high is crossed.
XRP/BTC (Daily Chart)- Downtrend
XRP/BTC price resumed its fall after briefly bouncing from the support level last week. The price has been declining for almost two months and bears are in control for now.
XRP has had quite a roller coaster ride throughout this year with a strong downtrend initially followed by one way rise in price. The uptrend didn’t sustain and the price is continuously making lower highs and lower lows since then. The shrinking volumes are also not helping the cause for bulls.
The immediate support for XRP/BTC lies at 0.00002056 BTC whereas the immediate resistance levels are around 0.00002220 BTC region.
Traders should slowly build short positions with stop loss in system and avoid long positions for now.
THETA/BTC (Daily Chart)- Breakout after pullback
THETA/BTC price is rising for more than two months now and gave a follow up breakout after a retracing a bit last week.
THETA/BTC has been one of the most eventful alts so far this year. The initial price increase followed by a dramatic fall and then a brief sideways movement only to resume uptrend, has led to multiple trading opportunities being created. The price pulled back to support after breaking out last week and the price has resumed its upward journey now.
The immediate support for THETA/BTC lies at 0.00004984 BTC whereas the immediate resistance levels are around 0.00005800 BTC region.
Traders should use pullback to support region for entering long positions with stop losses in place and keep trailing the stop loss if price moves towards resistance.
YFI/BTC [DeFi] (4 Hour Chart)- Potential reversal from downtrend
YFI/BTC has been the talk of the town ever since its debut for leading the DeFi rally so far. The data on daily chart was insufficient and hence the analysis is being done on 4 hour chart here.
YFI/BTC is the highest priced cryptocurrency across major exchanges and that naturally made it a buzz word among traders. Add to that the hype of DeFi cryptocurrencies and the coin went up more than 1000% in less than a month. However, the price has been declining from the last week and has entered downtrend on 4 hour chart. Only today has it shown first signs of reversal on the charts and there is no confirmation for the same, yet. The price needs to give close above the resistance level and sustain for a while for confirmation of reversal.
The immediate support for YFI/BTC lies at 1.98274 BTC whereas the immediate resistance levels are around 2.48002 BTC region.
Traders should wait for a strong close above resistance for considering to enter long positions as entering now during a downtrend could be risky.
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.