A senior analyst at RoboForex shares his insights into the future scenarios for Bitcoin, Ethereum, Litecoin, Bitcoin Cash and TRON price movement.
Dmitriy Gurkovskiy, a senior analyst at foreign exchange broker RoboForex, provides his vision of the possible tendencies in price changes for Bitcoin as well as for other major cryptos.
Cryptocurrencies continue correcting without making any significant movements. The major event for Bitcoin will be a breakout of $9,450, which may indicate further growth towards the local high. However, as long as the asset is moving below the resistance at $10,500, it’s too early to talk about the further uptrend. Bitcoin’s price has broken the ascending trendline to the downside for the first time: in most cases, the asset tests this line from below and then resumes falling. That’s why one shouldn’t exclude a possibility of another serious decline before the instrument resumes a stable bullish trend.
Bitcoin
In the daily chart, Bitcoin continues trading below a very important resistance level. Like we said earlier, it was the first time during this growth when the asset broke the ascending trendline, which has acted as an excellent support level for a long time. Most likely, the bearish pressure is starting to increase and there are good chances to see a decline towards $6,400, where the instrument is expected to complete an Inverted Head & Shoulders reversal pattern. A signal to confirm this trading idea is a breakout of the support line at the RSI, which may indicate a potential fixation below $8,015. However, to cancel this bearish scenario, bulls must continue pushing the price upwards and fix it above $10,565. In this case, the asset may easily reach $13,862 or even higher.
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As we can see in the H4 chart, BTC/USD continues moving inside a Triangle pattern. In the short-term, the RSI may test the descending trendline once again, which may result in a rebound and further decline of the price. To confirm this idea, the price must break the support level and fix below $8,450, thus indicating a breakout of the Triangle’s downside border. However, this scenario may be canceled if the instrument breaks the pattern’s upside border and fixes above $9,950. In this case, the asset may continue growing and complete the pattern higher.
Photo: Roboforex / TradingView
Ethereum
As we can see in the daily chart, Ethereum is still testing the middle band of the Bollinger Bands indicator. Here, there is a potential for the formation of a Double Top reversal patternю however, to confirm the pattern, the price must break the support level and fix below $173. Only after that, the asset may continue falling and form the pattern. A good signal in favor of this idea will be a breakout of the ascending trendline but bulls have been able to rebound from this line so far. That’s why, one should exclude another test of the resistance level at $220, after which the instrument may resume trading downwards. However, this scenario may no longer be valid if the asset breaks $250. In this case, the reversal pattern will be canceled and the market may continue growing to reach $287 or even higher.
Photo: Roboforex / TradingView
On shorter timeframes, ETH/USD is stuck inside a Triangle pattern, thus indicating uncertainty in the digital currency. One shouldn’t exclude a test of the pattern’s upside border at $215 and further decline after that. A strong signal in favor of this idea will be onу morу rebound from the resistance line at the RSI. To confirm further decline, the price must break the support area and fix below $190. In this case, the instrument may start completing the Triangle pattern with the target at $143. However, this scenario may be canceled if the asset breaks the pattern’s upside border and fixes above $220. After that, the instrument may continue trading upwards.
Photo: Roboforex / TradingView
Litecoin
In the daily chart, Litecoin is still correcting and forming a Head & Shoulders reversal pattern. To confirm further decline and completion of the pattern, the price must break $38, thus fixing below the pattern’s “Neckline”. Probably, the RSI indicator may break its support line much soonerб thus providing an anticipated signal in favor of further decline. However, this scenario may no longer be valid if the asset breaks the local high and fixes above $50. In this case, the upside target will be at $65.
Photo: Roboforex / TradingView
As we can see in the H4 chart of LTC/USD, there is also a potential for the completion of the reversal pattern. One shouldn’t exclude a test of the resistance level at $46 and a new descending movement from there. A strong signal in favor of this idea will be a test of the resistance line at the RSI. However, this scenario may be canceled if the price breaks $51. In this case, the instrument may reach the upside target from the daily chart.
Photo: Roboforex / TradingView
Bitcoin Cash
As we can see in the daily chart of Bitcoin Cash, bears have managed to fight the bullish pressure so far and keep the price inside a Triangle pattern. At the moment, the pair is trading inside the Ichimoku Kinko Hyo Cloud, thus indicating a sideways movement. To resume falling, the asset must break the Cloud’s downside border and fix below $207. In this case, the instrument may start completing the Triangle pattern with the target at $136. However, the bearish scenario may no longer be valid if the market breaks the resistance level and fixes above $280. After that, the instrument may continue growing towards $355 and higher.
Photo: Roboforex / TradingView
In the H4 chart, the pair is forming a small Triangle pattern. If the pattern is broken downwards, Bitcoin Cash may plunge. A signal in favor of this idea will be another rebound from the resistance line at the RSI. To confirm further decline, the market must break the support level and fix below $215. In this case, the closest downside target may be at $178. However, this scenario may be canceled if the instrument breaks $255. After that, the asset may break the pattern upwards and resume growing to reach $280.
Photo: Roboforex / TradingView
TRON
In the daily chart, TRON is stuck inside a Triangle pattern; in general, the cryptocurrency is correcting within the descending channel. There is a potential for a breakout of the pattern’s downside border and fixation of the price below $0.1185. In this case, the asset may continue falling towards the target at $0.0065. However, this scenario may no longer be valid if the instrument breaks the pattern’s upside border and fixes above $0.0180 after that, the market may break the descending channel’s upside border as well and continue trading upwards.
Photo: Roboforex / TradingView
On shorter timeframes, the cryptocurrency is also forming a Triangle pattern. The RSI indicator has almost reached the trendline, thus hinting at a potential rebound downwards and further decline. The closest downside target will be at $0.1045. however, the bearish scenario may be canceled if the instrument breaks the pattern’s upside border and fixes above $0.1605.
Photo: Roboforex / TradingView
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.
