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 bounced briefly to retest resistance level at 10854 USDT after failing to break it last week. ETH and XRP also bounced back along with BTC in the last few days.
The upcoming week shall reveal if BTC can regain its uptrend after it failed to give lower low last week or will it resume its fall. The reaction of alts in both scenarios will also be interesting to watch.
BTC/USDT (Daily Chart)- Retesting resistance
BTC/USDT bounced back after falling below resistance levels in the global sell off last week and after its attempt to breakout failed. Next few days are very crucial as they will decide the direction of trend in coming weeks.
BTC/USDT has been inconsistent with followups in the direction of its trend for several weeks now. Although the prices have been decreasing for almost one and a half month now, the pullbacks have been bigger than they are normally, and it remains to be seen if that will result in change of trend.
The immediate support for BTC lies at 9905 USDT and the resistance level is 10854 USDT. The next resistance above the current one is at 11825 USDT.
Traders should wait for previous swing low (placed at 11180 USDT) to be taken out to enter long positions and the support level mentioned above to be broken to enter short trades.
ETH/BTC (Daily Chart)- Resistance retest
ETH/BTC is also retesting its resistance similar to BTC and it remains to be seen if it will actually reverse from here or will it be a breakout this time.
ETH/BTC has been on a downtrend since start of the month on daily chart. It has given three lower highs and lows and the current pullback to resistance also may end up becoming another lower high. Bulls need to break past the resistance level with high volumes for an attempt to reverse the trend.
The immediate support for ETH/BTC lies at 0.029865 BTC whereas the immediate resistance levels are around 0.033921 BTC region.
Traders may enter small short positions closer to resistance level with adequate stop losses and remain in these positions until the price doesn’t give a daily close above the resistance level.
XRP/BTC (Daily Chart)- Reversal attempt
XRP/BTC spiked above the resistance level in an attempt to reverse the trend a couple of days back. However, there is no confirmation for the same so far and it continues to remain in downtrend.
XRP/BTC continued to fall along with majority of the market last week and has only bounced back a few days back. This price increase which resulted in a daily close above resistance level wasn’t accompanied by surge in volumes which should not be a good sign for bulls. There is still no confirmation of trend change and bears have the upper hand at the moment.
The immediate support for XRP/BTC lies at 0.00002220 BTC whereas the immediate resistance levels are around 0.00002400 BTC region.
Traders should wait for support region to be taken out on daily chart before entering short positions and avoid taking long positions until confirmation of trend change.
YFI/BTC [DeFi] (4 Hour Chart)- Pullback after breakout
YFI/BTC broke past the resistance level last week on 4 hour chart and may pullback to retest support level. The data on daily chart was insufficient and hence the analysis is being done on 4 hour chart here.
YFI/BTC price had been declining for more than ten days before it finally reversed a few days back. The price was giving lower highs and lows up until then which was changed when the price gave a breakout above resistance level and formed a higher high after that. It remains to be seen if the current pullback will result in higher low or not.
The immediate support for YFI/BTC lies at 2.48002 BTC whereas the immediate resistance levels are around 3.38700 BTC region.
Traders may enter long positions near the support region with adequate stop loss in system unless the price gives a close below it on 4 hour chart.
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.