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A Fakeout Today Could Indicate Further Downward Movement (Bitcoin, Litecoin & EOS Price)

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From yesterday’s open at around $130,205,106,000 the evaluation of the cryptocurrency market cap has decreased at first and has fallen down to $127.256,000,000 at its lowest point today but managed to recover immediately and is currently sitting around the same level.

Crypto Price Update

On the global chart, you can see the mentioned dip which was a bit lower than on Monday’s low at around $127,551,963,000 but since the evaluation came back immediately to around the same level it was probably a retest of the current horizontal range’s support in which the stagnation is occurring.

The market is in mixed color today with an insignificant percentage of change among top 100 coins in the last 24 hours ranging around 1%.

Bitcoin’s market dominance has increased slightly as its currently sitting around 52.1%.

BTC/USD

From yesterday’s high at $3930 the price of Bitcoin has fallen by 4.19% at first as it came down to $3762 at its lowest point today when the spike to the downside has been made, but came back quickly and equally up and is currently sitting at $3930 retesting the yesterday’s high from the upside for support.

On the hourly chart, you can see that today’s dip was a retest of the bold black line which is the baseline support from the start of the bear market and the interaction ended as the bounce from it indicating that it is still the level of respect by the price. Now the price is back inside the territory of the ascending channel and is just sitting at its support line where it is putting pressure around the vicinity of the yesterday’s high.

As the price hasn’t managed to go past Monday’s high at $3962 or interacted with the upper resistance level of the ascending channel we could see another increase to the horizontal resistance at $3994.4 for interaction before further downfall and a breakout from the ascending channel.

Market sentiment

Bitcoin’s hourly chart technicals are signaling a buy.

Pivot points

S3 2840.7
S2 3440.7
S1 3826.5
P 4040.7
R1 4426.5
R2 4640.7
R3 5240.7

LTC/USD

From yesterday’s open at $45.873 the price of Litecoin has increased at first to $46.388 from where it too dipped below its ascending channel, coming to $43.565 at its lowest spike which was a decrease of 6.23%, but the hourly candle managed to close above the horizontal support at $44.952 from where the price recovered and is currently sitting at $46.883.

On the hourly chart, you can see that the price of Litecoin has encountered resistance at the intersection of the descending trendline and the ascending channel’s resistance line which is why we are seeing the first signs of weakness in a form of a wick from the upside on the previous hourly candle which indicates that the price has encountered some selling pressure.

Would this be enough to push the price back to the downside for a proper breakout from the current ascending channel we are yet to see but as this channel has been formed after the 17.6% decrease it is most likely a correctional attempt before further downside which is why eventually I would be expecting a breakout to the downside.

We could see another increase from here but like I’ve stated it would be only correctional and will not go above the lower level of the resistance zone above the price at $49.236 which would be the last retest of the resistance which could trigger another round of selling.

Market sentiment

Litecoin’s hourly chart technical are signaling a buy, with moving averages signaling a strong one.

Pivot points

S3 28.737
S2 39.304
S1 45.949
P 49.871
R1 56.516
R2 60.438
R3 71.005

EOS/USD

From yesterday the price of EOS has increased by around 6% coming from $3.4612 to its highest point today at $3.6788 but since then the price retraced slightly and is currently sitting at $3.6245.

Looking at the hourly chart you can see that the price action doesn’t look the same as like in the case of other previously analyzed cryptos as the price of EOS hasn’t dipped below its horizontal range. The price is currently below the 0.5 Fibonacci level which stopped out the last attempt for an increase but as I have counted 4 waves we are likely to see the price going above it but only to the support of the upper horizontal range which now serves as resistance.

This movement if it happens would create a cup and handle pattern with the handle potentially breaking on the downside but we are yet to see.

Market sentiment

EOS is in the buy zone.

Pivot points

S3 0.6597
S2 2.2607
S1 3.2997
P 3.8617
R1 4.9007
R2 5.4627
R3 7.0637

Conclusion

The market is still stagnating inside the horizontal but slightly ascending range which could be viewed as a corrective structure after the initial drop in price. The correction may lead to some small increase but not above the last high after which I would be expecting more downside.

The other possibility is that we see a downfall as a breakout from the downside immediately after the correction ends but in either way since the market recovery has ended we are to most likely see some bearish period.

The post A Fakeout Today Could Indicate Further Downward Movement (Bitcoin, Litecoin & EOS Price) appeared first on Blockonomi.

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