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The price of bitcoin has declined significantly and has broken the $ 3.700 support zone. BTC / USD is trading in a bearish zone and an upward correction is likely to cope with sellers close to $ 3,700 or $ 3,880. Likewise, all the major altcoins such as Ethereum (ETH), ripple (XRP), bitcoin cash (BCH), litecoin (LTC) and EOS have recently been eliminated and remain on sale on rallies close to previous supports (now resistors).
Key Takeaways:
- The bitcoin price was trading under the $ 3,700 support and tested the $ 3,400 zone.
- Ethereum has established itself below the $ 100 support area and has tested $ 80.
- The price of the ripple fell below the support of $ 0.3200 and revised $ 0.3000.
- EOS declined heavily and even broke the $ 2.00 support level.
- VRS and WC have gained over 200% in the last 7 days.
Bitcoin price analysis
The price of Bitcoin formed a decent support base near the $ 3,700 level last week and recovered over $ 4,100. BTC / USD recovered close to the $ 4,500 level where sellers emerged and protected further gains.
Bitcoin price chart: Click to enlarge
Looking at the 4-hour chart, the price was trading at $ 4,486 and thereafter started a new decline. There was a slow and steady decline and the price broke the $ 4,000 and $ 3,800 support levels. The decline was such that the price even broke the $ 3.700 support area.
There was also a closing below the $ 3,700 level and the simple moving average at 21 (4 hours). The sellers gained control and pushed the price below the $ 3,500 level and the 1,236 Fib extension level of the last wave, from $ 3,698 down to $ 4,486 up.
The current technical structure is such that the price may continue to fall. An initial support is $ 3,400, below which the price can be traded towards the $ 3200 level.
The declared $ 3200 level is an important support as it represents the latest wave 1.618 Fib extension level, from $ 3,698 down to $ 4,486 up. Below $ 3,200, the price is likely to verify the key support level of $ 3,000.
The downside, if there is an upward correction, the price may find resistance near the $ 3,600 level. However, the most important resistance is close to $ 3,700, which was previously a support. Furthermore, there is a crucial bearish trend line with resistance near $ 3,880 on the same chart.
Price analysis of Ethereum
The price of Ethereum was traded in the same way and followed the decline of the bitcoin. Last week, ETH / USD formed a decent support near the $ 102 level and recovered above $ 115, but the upside move faced solid resistance near the $ 130 level.
Ethereum price table: Click to enlarge
Looking at the 4-hour chart, the price found sellers near the $ 128 level and then started a new decline. The price declined heavily and broke support levels $ 115 and $ 110. Sellers have even managed to push the price below the support level of $ 102.
Subsequently, the price broke the support of $ 100 and stabilized below the moving average at 21 (4 hours). Also, there was a break below a declining channel with support for $ 100 on the same chart.
It opened the door to more losses and the price broke the $ 97.00 level and the Fibon 1.236 extension level of the last wave from the low $ 102 to the high $ 128. Buyers were exceeded as the price broke the $ 90 level.
A new low was less than $ 86 and the 1.618 Fib extension level of the last wave from $ 102 low to $ 128 high. If there is an upward correction, it is likely that the price will face sellers close to the $ 96 or $ 100 levels, which were previously supported.
Overall, Ethereum remains in a downtrend and looks like it could even break the $ 85-86 zone and trade towards the $ 70 level in the next few sessions.
Price analysis of undulations
The price of the ripple has not decreased much and has remained stable compared to Bitcoin and Ethereum. Last week, XRP / USD tested the $ 0.3200 support area and then made a good recovery.
Ripple Price Chart: Click to enlarge
Looking at the 4-hour chart, the price was trading above the resistance levels of $ 0.3600 and $ 0.3800. However, the price failed to exceed the resistance of $ 0.4000 and subsequently started a new downward move below the $ 0.3800 level.
The price was trading below the support levels of $ 0.3600 and $ 0.3400 and stood below the simple moving average at 21 (4 hours). Sellers have even pushed the price below the support level of $ 0.3300.
A new monthly minimum has been formed around $ 0.2940 and the price continues to follow a downward trend. On the upside, initial resistance approaches the fiber retracement level of 23.6% from the recent decline from the low of $ 0.4082 to $ 0.2935 minimum.
There is also a bearish trend line in place with resistance at $ 0.3300 on the same chart, above which the price could test the resistance of $ 0.3500 and the 50% retracement level of Fibra of the recent decline from $ 0.4082 to $ 0.2935 low.
Overall, the price of ripple remains in a downward trend as long as it is less than $ 0.3500. On the downside, a break below $ 0.2900 could push the price towards $ 0.2800 or $ 0.2650.
EOS price analysis
The price of EOS remained one of the worst results as it steadily declined from the $ 4 swing over the US dollar. The sellers remained in action and were successful in eliminating support levels of $ 3.00 and $ 2.50.
EOS Price Table: Click to enlarge
Looking at the 4-hour chart, the price followed a steady decline and a declining channel. Subsequently, the price broke channel support at $ 2.10 and fell below the $ 2.00 support level.
The price is now trading well below the rotation level of $ 2.50 and the simple moving average at 21 (4 hours). A new monthly minimum has been formed close to $ 1.68 and it appears that the current downward trend is far from over.
On the upside, initial resistance is the Fib retracement level at 23.6% from the recent decline from $ 3.00 upwards to $ 1.68 below. More importantly, the key resistance is close to the $ 2.20 level and the simple moving average at 21 (4 hours).
The 50% Fibra retracement level of the recent $ 3.00 top drop to $ 1.68 below is also close to $ 2.34 to act as a solid resistance for buyers. Therefore, there are high odds of further losses in EOS below $ 1.68 and any increases are likely to deal with sellers close to $ 2.20 or $ 2.35.
The best earnings
Despite the recent decline, some small capitalization altcoins have gained more than 80% in the last 7 days, including VRS, WC, PUT, XYO, GLD, LPC and KNOW (trading volume above $ 50K). Of these, the VRS met around 250% and the WC gained almost 210%.
Overall, the bitcoin price is under a lot of pressure below the $ 3,700 support. BTC / USD is likely to recover in the short term, but sellers could defend resistance levels $ 3,700 and $ 4,000. Likewise, the main altcoins such as Ethereum, EOS, litecoin, ripple, bitcoin cash, BCHSV, ADA, NEO, ZRX and XMR remain in a downward trend and will likely increase losses in the coming days.
Market data is provided by TradingView, Bitfinex.
