Bitcoin declined sharply this week and broke key supports near $7,250 and $6,815. Major Altcoins like Ethereum, ripple, EOS and litecoin also followed BTC/USD’s decline and tumbled.
- Bitcoin price fell sharply and it is currently trading above the key support at $6,000.
- Ethereum is in major downtrend and is trading well below $390-400.
- Ripple price collapsed below $0.40 and is currently holding the $0.32 support.
- EOS almost tested the $5.00 support and is currently consolidating losses.
- Despite the recent collapse, Vikky Token and Bankcoin registered more than 300% gains.
Bitcoin price declined sharply from the $7,150 swing high after the US SEC decided to postpone one of the ETF approval decisions. BTC/USD nosedived and broke a few important supports like $7,020, $6,815 and $6,550.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price settled below the $6,815 support area and the 21 simple moving average (4-hours). It opened the doors for more losses and the price almost tested the $6,100 support area.
A new monthly low was formed at $6,139 and the price is currently attempting a recovery. Bitcoin buyers managed to push the price above the $6,500 level and the 23.6% Fib retracement level of the last decline from the $7,167 high to $6,139 low.
However, buyers faced a strong resistance area near $6,620 and the 21 SMA. More importantly, the price failed to test the 50% Fib retracement level of the last decline from the $7,167 high to $6,139 low.
It seems like the price failed to hold gains above $6,500 and moved back below $6,450. On the upside, there is also a crucial bearish trend line in place with resistance at $6.560 on the same chart.
Should the price break the trend line and settles above $6,620, there could be a rebound towards the $6,800 and $6,815 resistance levels. On the flip side, a downside break below the $6,139 low and the $6,100 support puts the price at a risk of trading to a new yearly low.
Ethereum price once again performed very badly this past week as it failed to hold an important support near the $400-405 zone against the US Dollar. ETH/USD tumbled by more than $50 this week and traded below the $400 and $380 support levels.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price dropped sharply from well above $410 to well below $380. Ether sellers took control and pushed the price below the $370 and $360 levels. There was even a break below the $350 support and a new monthly low was formed at $346.
Later, the price corrected a few points and moved above the $363 level. There was also a spike above the 23.6% Fib retracement level of the last drop from the $414 high to $346 low. However, buyers failed to keep the price above $362.
At the outset, the price remains in a downtrend and if sellers push the price below the recent low of $346, there could be another sharp drop. The next supports are at $335 and $315. On the upside, a break and close above $380 plus a bearish trend line at $395 is needed to avoid further losses.
Ripple price followed bitcoin’s and Ethereum’s path to move into a bearish zone against the US Dollar. XRP/USD declined heavily and broke a crucial support level near $0.4240.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price cleared the $0.4240 and $0.4000 support levels. It prompted a sharp downward move and the price broke the $0.3600 and $0.3400 supports.
XRP traded as low as $0.3198 and is currently consolidating losses. It seems like there is a short-term breakout pattern forming with support at $0.3250 and resistance near $0.3500. Should the price break the triangle resistance, it could move towards the 38.2% Fib retracement level of the last drop from the $0.4624 high to $0.3198 low.
However, there are many hurdles on the upside for ripple buyers near the $0.3700 level, 21 SMA, $0.3750, and a bearish trend line with resistance at $0.4050.
Therefore, any recoveries from the current levels is likely to face a strong selling interest above $0.3700. On the downside, a break below $0.3198 may well clear the path for more losses towards the $0.3000 and $0.2800 support levels.
There were nasty declines noted in EOS price this past week against the US Dollar. EOS/USD settled below the $7.50 support and dropped significantly.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price broke many key supports including $7.20, $6.85 and $6.00. It almost tested the $5.00 support and formed a low at $5.33. The price is currently attempting an upward correction, but it is facing resistance near $5.80-6.00.
The 23.6% Fib retracement level of the last slide from the $7.23 high to $5.33 low is also acting as a barrier for buyers. Above this, the price may possibly attempt a recovery towards the $6.25 and $6.50 resistance levels.
An intermediate resistance is near the $6.30 level and the 50% Fib retracement level of the last slide from the $7.23 high to $5.33 low. Nevertheless, as long as EOS price is below $6.85, it remains at a risk of more losses.
On the downside, the $5.20 and $5.00 supports levels are very important. A break below $5.00 may perhaps spark heavy losses in EOS in the near term.
During the last 7 days, Vikky Token and Bankcoin gained a lot of bullish momentum and rallied more than 300% (trading volume more than $50K). Additionally, coins like SRCOIN, Luna Stars, GENE, ATC Coin, and Tourist Token posted gains more than 100%.
To sum up, this week’s drop in bitcoin, Ethereum, ripple, litecoin, ICX, BNB, XLM and ADA indicates an increase in selling pressure. However, if BTC/USD stays above $6,000 and Ethereum recovers from $350, then there could be a decent upward move in the coming days.
The market data is provided by TradingView, Bitfinex.