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 is testing the resistance after a very brief pullback last week and continues to remain bullish so far. ETH/BTC continued to remain sideways and XRP/BTC was bearish through this week.
The upcoming week will show if BTC will get a follow on breakout and if that shall hold or not. It will also be interesting to see how much will alts retrace in BTC pair if BTC actually breaks out again.
BTC/USDT (Daily Chart)- Testing Resistance
BTC/USDT gave a strong breakout two weeks back and while it did retrace a bit last week, it has quickly gained back the momentum and is currently testing the resistance level.
BTC is looking bullish for now and it remains to be seen if it shall give a further breakout from the current resistance level. It is important to note however, that the volumes are reducing for past few weeks. If the breakout actually happens, confirmation through continued higher lows will become crucial.
The immediate support for BTC lies at 10854 USDT and the resistance level is 11825 USDT.
Traders may build long positions post breakout with daily close above the resistance level and with stop loss in place.
ETH/BTC (Daily Chart)- Sideways
ETH/BTC continues to remain sideways even though BTC has turned bullish and there has been no trend confirmation for now.
ETH/BTC had been on downtrend since starting of last month and has now turned sideways with no clear trend confirmation on either side. It has given a higher low but has not been able to follow that up with higher high or a daily close above the resistance level. This means that the lack of clarity still remained through last week.
The immediate support for ETH/BTC lies at 0.029865 BTC whereas the immediate resistance levels are around 0.033921 BTC region.
Traders should wait for breakout of resistance and daily close above it before entering long trades.
XRP/BTC (Daily Chart)- Failed breakout
XRP/BTC had attempted breakout a couple of weeks back but it failed to get follow through and the price dropped below the support.
XRP/BTC failed its breakout and has given lower low in the process. This has led to continuation of downtrend in XRP as the uptrend could not be confirmed because of price rejection at resistance level. The volume is declining steadily for several months now which is another issue 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 may want to enter short positions on pullback to resistance level as long as the downtrend remains in place. It is important to have proper stop loss in system.
YFI/BTC [DeFi] (4 Hour Chart)- Continued downtrend
YFI/BTC was on downtrend for yet another week and there are no signs of reversal at the moment. The data on daily chart was insufficient and hence the analysis is being done on 4 hour chart here.
YFI/BTC has continued to remain in downtrend even last week and was not able to retest resistance levels even as it pulled back twice. It may be entering a sideways phase but there is no confirmation of that either.
The immediate support for YFI/BTC lies at BTC 0.99206 whereas the immediate resistance levels are around 1.42330 BTC region.
Traders may enter short trades only on a newer low below the swing low formed in the first week of this month, with adequate stop losses in place.
BAT/BTC (Daily Chart)- Breakdown
BAT/BTC gave a breakdown from support level last week and now has continued its fall after a day’s pullback to the breakdown level.
BAT/BTC is on a downtrend for almost two months now and has continued to make lower highs and lower lows throughout the period. The price gave a breakdown late last week and while it may bounce slightly, the downtrend will likely remain intact unless there is a strong price increase. The shrinking volumes are also confirming lack of reversal of trend for now.
The immediate support for BAT/BTC lies at 0.00001700 BTC whereas the immediate resistance levels are around 0.00001880 BTC region.
Traders may add small short positions or wait for pullback as per their risk appetite and continue to hold with stop loss as long as there is no trend change confirmation on daily 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.