Bitcoin started a significant downside correction below $8,000. More importantly, major altcoins like Ethereum, Ripple, EOS and Bitcoin Cash tumbled sharply to move into a bearish zone.
Bitcoin price formed a short-term high at $8,503 and started a downside correction. BTC/USD declined and broke a few key supports like $8,200 and $7,680.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price broke a major contracting triangle support at $8,180 to start the current downward move. Later, sellers gained traction and were successful in clearing the $7,680 support, which was a resistance earlier.
The price even broke the 38.2% Fib retracement level of the last wave from the $6,079 low to $8,503 high. Finally, there was a close below the $7,600 support and the 21 simple moving average.
It opened the doors for a larger correction and bitcoin price declined below the $7,400 support. BTC/USD is now approaching another important support at $7,280. It acted as a support many times previously and now it coincides with the 50% Fib retracement level of the last wave from the $6,079 low to $8,503 high.
Should sellers break the $7,280 support, the next stop could be the $6,800 support. On the flip side, if the price recovers, an initial resistance awaits near the $7,680 level (the previous support) and the 21 SMA.
Above $7,680, bitcoin is likely to move back in the bullish with the next targets as $8,000 and $8,200.
Ethereum price was one of the worst performing major altcoins this past week since it broke the $428 support area against the US Dollar. ETH/USD declined heavily and even traded to a fresh bi-monthly low below the $407.00 support.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price came under a lot of bearish pressure once sellers broke an important contracting triangle support at $466. The price tumbled, broke the $460, $440, $428 and $407 support levels, and finally settled below the 21 hourly SMA.
ETH price breached the last swing low near $407, which has opened the doors for more losses towards the 1.236 Fib extension level of the last wave from the $418 low to $515 high at $395.
Should the price fail to hold the $395 support, there could be heavy selling and ETH/USD may perhaps slide towards the $360 level in the near term.
On the other hand, if the price recovers above $418 and the 21 SMA, it may possibly revisit the $440 and $450 resistance levels.
Ripple price failed to hold the $0.4540 support this past week and declined against the US Dollar. However, XRP/USD stayed above a significant support area near the $0.4240 level, which is a positive sign.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price cleared an ascending channel support at $0.4540 and declined. During the slide, it broke the $0.4400 support and the 21 SMA. However, losses were protected by the $0.4240 and $0.4300 support levels.
As a result, the price bounced back recently, but again failed near $0.4540 and $0.4580. At the moment, the price is trading above the $0.4240 support area with a positive angle. More importantly, it seems like there is a declining channel formed with resistance near the $0.4585 level.
An initial resistance awaits near the 50% Fib retracement level of the last drop from the $0.4586 high to $0.4248 low. A successful close above the $0.4540 and $0.4580 resistance levels will most likely open the gates for a fresh rally in ripple.
The next targets could be $0.4750 and $0.5200. Conversely, if ripple buyers fail to keep the price above $0.4240, there could be heavy slides in XRP/USD towards $0.4000 and $0.3800 in the near term.
In the last analysis, we discussed an important support near $8.00 in EOS price against the US Dollar. EOS/USD pair failed to hold the $8.00 and $7.70 support levels and declined below $7.50.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price broke a major contracting triangle with support at $8.25. It sparked bearish moves and the price moved below the $8.00 and $7.70 supports.
The price even cleared the 76.4% Fib retracement level of the last wave from the $6.54 low to $9.35 high. Therefore, there are high chances of more declines toward the last low at $6.54. Below this, the price may perhaps trade towards the $6.00 support and the 1.236 Fib extension level of the last wave from the $6.54 low to $9.35 high.
To the topside, the $7.40 level is a strong resistance, sitting near the 21 SMA. Above this, the price is likely to test the $7.70 and $8.00 resistance levels.
During the last 7 days, Speed Mining Service and Fox Trading gained nicely and moved higher by more than 100% (trading volume more than $50K). A few other altcoins like WAB, DFT, ZClassic and MSD also posted decent gains and climbed between 40-60%.
Overall, bitcoin’s recent decline could find strong supports near the $7,280 and $6,800 levels. However, to move back in a positive zone, BTC/USD must settle above $8,000. On the other hand, major altcoins like Ethereum, Bitcoin Cash and Litecoin are likely to remain under pressure unless the market sentiment improves substantially in the next few sessions.
The market data is provided by TradingView, Bitfinex.