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The price of bitcoin declined significantly after the sellers pushed it below the $ 6,000 support. BTC / USD traded towards the $ 5,500 level and is currently consolidating losses. There could be a small recovery in bitcoins and major altcoins such as Ethereum (ETH), ripple (XRP), bitcoin cash (BCH), litecoin (LTC), Monero (XMR) and EOS, but the peaks will probably be limited.
Key Takeaways:
- The price of bitcoin fell far below $ 6,000 and tested the $ 5,500 support.
- Ethereum was traded below support levels $ 200 and $ 185.
- The ripple price has re-tested the support area by $ 0.4340 and has recovered.
- EOS fell below $ 4.50 and settled below the $ 5.00 support.
- NSD has recovered more than 500% and the ONL has gained around 160% in the last 7 days.
Bitcoin price analysis
Bitcoin prices have failed on many occasions to break the resistance level of $ 6,600. As a result, there was a negative reaction and the BTC / USD pair dropped significantly below the $ 6.400 and $ 6,000 support.
Bitcoin price chart: Click to enlarge
Looking at the 4-hour chart, the price suffered a lot of selling pressure after the sellers pushed the price under $ 6050 and $ 6,000 in support. The price has plunged over $ 500 and stood below the 21 (4-hour) moving average.
During the decline, the price was trading below two ascending channels similar to $ 6,500 and $ 6,420. A new annual minimum was formed at $ 5.433 before the price started an upward correction. It exceeded $ 5,500 and $ 5,600 levels. Furthermore, there was a break above the Fib retracement level of 23.6% from the recent decline from $ 6.500 upwards to $ 5.433 below.
However, the price is currently struggling to exceed the $ 5,800 resistance level. In the short term, there may be some shifts of radius above $ 5.600. If there is a bullish break above $ 5,800, the price could trade towards the $ 6,000 resistance.
The declared level of $ 6,000 can act as more resistance since it was a previous support and now also coincides with the 50% Fibra retracement level of the recent decline from $ 6,500 up to $ 5,433 down.
Therefore, a greater recovery in bitcoin prices is very unlikely over $ 6,000. On the downside, initial support is $ 5,600 followed by $ 5,500. If sellers earn the price below $ 5,500, the price may fall to $ 5,200.
Price analysis of Ethereum
The price of Ethereum also followed the bitcoin and started a major downward movement from well above the $ 210 level. The ETH / USD traded under some important media close to $ 210 and $ 200 to move in. a bearish zone.
Ethereum price table: Click to enlarge
Looking at the 4-hour chart, the price broke an important uptrend line at $ 211 to start a bad decline. There was a sharp decline below the support of $ 200 and the simple moving average at 21 (4 hours).
The price has dropped by over $ 25 and also under the support of $ 175. A new monthly minimum was formed at $ 171 and subsequently the price started to consolidate losses. He recovered above the $ 180 level and tested the Fib retracement level at 23.6% from the last decline from $ 224 up to $ 171 at the bottom.
In the beginning, the price is facing solid resistance close to the previous support at $ 184. It seems that the price is clearly struggling to overcome the resistance of $ 184-185, and could perhaps fall back to the $ level. 170.
On the other hand, if there is a break above the resistance of $ 184, the price may rise towards the resistance of $ 194-198. In addition, the 50% fiber retracement level of the last drop from the $ 224 high to $ 171 below is also close to $ 198 to serve as resistance.
Therefore, if the price of Ethereum recovers, it is likely to face many sellers close to the resistance of $ 194 or $ 198. On the downside, initial support is close to $ 170-172, below which the price could go down to the $ 155 level.
Price analysis of undulations
The price of ripple was relatively stable, but also fell heavily below the support level of $ 0.4970 compared to the US dollar. XRP / USD traded below the $ 0.4400 support level and tested the $ 0.4150 area.
Ripple Price Chart: Click to enlarge
Looking at the 4-hour chart, the price started to fall sharply after sellers sold off the $ 0.4970 support and the simple moving average at 21 (4 hours). It opened the door to further losses and the price fell below the support of $ 0.4340.
However, there was not a proper closing below $ 0.4340 and the price has clearly recovered from $ 0.4155 minimum. The price jumped above the 50% fiber retracement level of the last decline from the low of $ 0.5351 to $ 0.5155 low.
The price was trading above the $ 0.4800 level, but sellers appeared near the $ 0.4950 level. In addition, the 61.8% retracement level of Fib of the last decline from the low of $ 0.5351 to $ 0.5155 also acted as solid resistance.
More importantly, there is a bearish trend line in place with resistance at $ 0.4970. Therefore, it will not be easy for buyers to zero resistance levels of $ 0.4900 and $ 0.4970. Above these strengths, the price will most likely move above $ 0.5000.
On the downside, initial support is $ 0.4700, below which the price could revisit the very important support area $ 0.4340.
EOS price analysis
The EOS price failed to test the resistance of $ 6.00 against the US dollar. The price was not able to cancel the resistance of $ 5.75 and then started a strong downward movement below $ 5.50.
EOS Price Table: Click to enlarge
Looking at the 4-hour chart, the price followed a descending channel below $ 5.50. Subsequently, the sellers gained momentum and pushed the price below the channel support at $ 5.10 and the simple moving average at 21 (4 hours).
The price has fallen heavily and traded below support levels $ 5.00 and $ 4.50. A new monthly minimum was formed at $ 4.29 and thereafter the price recovered some points. The buyers pushed the price above the 23.6% retracement level of the recent decline from $ 5.46 up to $ 4.29 down.
However, there is a greater resistance formed near the levels of $ 4.90 and $ 5.00. Support for the broken channel and the 21 SMA could represent a solid obstacle for shoppers close to $ 4.90.
In addition, the 50% Fibra retracement level of the recent decline from $ 5.46 up to $ 4.29 below is close to $ 4.90. Therefore, an upward correction towards $ 4.90 and $ 5.00 should face strong resistance. On the downside, the main support is $ 4.50, below which there is a risk of a decline towards $ 4.00.
The best earnings
During the last 7 days, two smallcoin altcoins (NSD and ONL) were traded higher. The NSD has recovered more than 500% and the ONL has gained around 160%. Some other altcoins have gained around 50%, including GBC, MXM, DAC, XPX, RPM and RKT (trading volume above $ 50K).
Overall, the bitcoin price made a sharp U-turn and broke the key support of $ 6,000. If BTC / USD recovers, the previous support for $ 6,000 and $ 6,050 are likely to act as strong barriers to buyers. Likewise, major altcoins such as Ethereum, EOS, litecoin, ripple, NEO, QTUM, bitcoin cash, ADA, XLM, ZRX and XMR could correct higher in the short term, but earnings will probably be limited.
Market data is provided by TradingView, Bitfinex.
