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 has entered a crucial phase with delicate structure on daily charts and upcoming days will decide the trend for next few weeks. ETH on the other hand has more clarity on charts and continued its downtrend after failed breakout attempt and XRP surprisingly bounced back in a potential trend reversal attempt.
The upcoming week will tell the direction of BTC’s movement and also hold the fate of alts if they will follow BTC or will some of them continue their downtrend.
Contents
BTC/USDT (Daily Chart)- Unclear trend
BTC/USDT has not given confirmation of trend change or trend continuation on either side and the prices could go either ways for now.
BTC/USDT has given lower highs but higher lows on the chart which shows indecisiveness in the trend direction. The price has formed an imperfect triangle pattern and breaking the resistance or support on either side will decide the direction in upcoming days. The volumes are also shrinking which shows that movements on either side are not conclusive yet.
The immediate support for BTC lies at 9905 USDT and the resistance level is 10854 USDT.
Traders should wait for clarity of direction before entering any trades and only enter in the direction of trend after confirmation on daily chart.
ETH/BTC (Daily Chart)- Continuation of downtrend
ETH/BTC price retested the resistance level last week and failed to break past it showing that the downtrend is still in place.
ETH/BTC gave yet another lower high last week after it failed to break the resistance level and the price fell below it. Although the shrinking volume and small candle body size shows lack of strength in the trend, sellers seem to have upper hand for now.
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 the resistance level with stop loss in the system but it is important to keep position smaller than usual due to lack of strength in trend.
XRP/BTC (Daily Chart)- Trend reversal
XRP/BTC has once again reversed its trend although there is more confirmation required for now.
XRP/BTC gave a four percent price spike last week and over five percent price increase yesterday. It formed a higher high and higher low in the process showing that the trend has likely reversed once again. Although there is more confirmation required and the structure has not properly formed yet to conclude that this trend shall lost for several weeks or months.
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 breakout from resistance level on daily chart before entering long positions with stop losses in place.
YFI/BTC [DeFi] (4 Hour Chart)- Failed breakout
YFI/BTC failed to hold the support level and hence the previous breakout failed and price continued to decline eventually entering downtrend in short term. The data on daily chart was insufficient and hence the analysis is being done on 4 hour chart here.
YFI/BTC gave a breakout more than a week last week but the price failed to follow through and the support got broken again, resulting in the downtrend for almost another week now. Although the price is attempting the retest for the resistance again, there is no confirmation yet and the downtrend remains intact for now.
The immediate support for YFI/BTC lies at 1.42330 BTC whereas the immediate resistance levels are around 1.98274 BTC region.
Traders should wait for trend reversal before entering long positions and only take short positions after the support level is broken on the 4 hour chart.
BAND/BTC (Daily Chart)- Support broken
BAND/BTC has been in sideways to downward price trend for close to two months now. The support seems to have broken now although there is still more confirmation required.
BAND/BTC gave a lower high for the first time at the starting of last month and has since formed lower highs and lower lows twice. It still needs to give a new swing low because the price had bounced back last time after breaking this very support level. So confirmation of a new swing low is still required before concluding continuation of downtrend.
The immediate support for BAND/BTC lies at 0.00028440 BTC whereas the immediate resistance levels are around 0.00057020 BTC region.
Traders should wait for a new swing low to be formed as confirmation before entering into smaller short positions with adequate stop losses in their trading systems.
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.
Be First to Comment