For the past six (6) months it’s been no secret that Bitcoin HODLers have found the environment both challenging as well as the footing slippery as prices throughout have continued to slide the slope lower.
This past weekend, both investors/traders were treated to yet another leg lower on large volume, which produced a sharp and violent move to the south-side and in the process, taking-out/breaching some very important short-term support levels across the board.
While recent price action has produced short-term oversold conditions and we can perhaps anticipate some pause as well as some price relief in the days ahead, we must remember that oversold conditions can and often do, become more oversold just as overbought conditions can often lead to further price appreciation beyond what many investors/traders expect/anticipate.
Thus, while we certainly suspect that both investors/traders within the crypto sphere will be treated to some pause and or short-term price relief in the days ahead, we must always defer our opinions and biases to the action of the market as Price is the only thing that Pays.
That being said, let’s take a look at the charts to see what may be in store moving forward as well as some levels to monitor in order to navigate the landscape without detonating the triplines that litter the field.
After touching down at the 7K level a couple of weeks ago and subsequently grinding higher, Bitcoin (BTC) was unable to clear our previously noted 7730 level and ‘stick’. Once that became apparent, and it was rather quite obvious as BTC attempted to clear the hurdle on multiple occasions only to fail, such was the signal that the likelihood of lower prices were in the offing, which has now played-out.
Moving forward, both investors/traders may want to monitor the following levels for further clues/evidence with respect to direction.
If, at any time in the days ahead, BTC can go top-side of the 7040-7060 zone and perhaps, more importantly, can clear the noted 7260 figure (former support now turned resistance), such development/s, should they materialize, would release some short-term pressure. On the opposite side of the ledger, potential short-term support can be found at the 6425 level and should such level ‘give-way’ at any time in the days/weeks ahead, a date with the February lows at 6K would certainly be in the cards.
Much like BTC, Ethereum (ETH) found itself having trouble with our noted 615-630 zone and was unable to jump the creek, which promptly turned the tables southbound as we can witness from the Chart below:
As we can observe above, despite several attempts at clearing the 615-630 zone and incapable of holding, proved too much for ETH as it promptly reversed course for lower depths.
Moving forward, short-term potential resistance can be found at the 538 as well as the 575-600 zone, while potential support resides at 480-500 area. Should the 480-500 area ‘give-way’ at any point in the days/weeks ahead, the probability of a move into the 350-400 zone becomes a viable possibility.
Moving on to LiteCoin, despite its short-term oversold posture, LTC remains extremely vulnerable as it has violated all of its potential short-term support levels and is hanging by a thread. While a bounce may be forthcoming in the days ahead, it appears that a date with the 80-85 zone is indeed its ultimate destination down the road.
As we can witness above, LTC has taken-out our noted 109-112 zone and now finds itself with little support or net beneath its feet. While a bounce into the 115-120 zone may relieve some short-term pressure, we suspect that the 80-85 zone may provide its best line of defense (potential support) moving forward.
Last but not least, let’s take a look at Bitcoin Cash below to see what it may have in store for both investors/traders moving forward.
As we can observe from the chart above, while the recent move lower in BCH was sharp and deep accompanied with volume, it did not hit nor violate the May lows located at the 868-870 level.
Thus, moving forward, both investors/traders may want to pay particular attention to the 840-870 zone as well as the February low 750 area for potential support, while the 1000-1035, as well as the 1075-1085 zone, provide likely headwinds/resistance above.
While market participants may enjoy some price relief from short-term oversold conditions in the days ahead, we must remember that bear market conditions persist throughout the entire cryptocurrency universe and as investors/traders, we have to leave our opinions/biases at the door and take our cues from the action.
If one is trading this environment, be sure to keep positions on a tight leash and honor Your Stops as risk management is priority number one, as always. For those longer-term investors, patience and discipline are in order and you may want to continue to monitor your favorites for suitable entry and or adding to existing positions.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com
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The cryptocurrency rallied a few days back, but now, it has moved closer to 38.2% Fib level. Investors are enthusiastic that as it remains at this level for some time, and stabilize. The next move in Bitcoin price will take it to the 61.8% Fib level. This is when the hike in the price of the cryptocurrency will occur towards $4,200. However, after the surge in price, the upcoming weeks will see the Bitcoin falling swiftly to $3,000.
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