Bitcoin traded to a new monthly low this week and is currently recovering above $6,300. Similarly, major Altcoins like Ethereum, ripple, EOS and litecoin nosedived and are currently correcting higher.
- Bitcoin price broke the $6,000 support, found bids near $5,860, and later recovered.
- Ethereum tested the $250 support area and is currently rebounding.
- Ripple price tumbled and tested the $0.2400-0.2500 support area where buyers emerged.
- EOS dived below the $5.00 support and traded as low as $4.17.
- OptiToken and Soma gained traction this week and moved up by more than 200%.
Bitcoin Price Analysis
Bitcoin price extended declines this week below the $6,200 support level and even broke the $6,000 handle. BTC/USD traded as low as $5,861 and is currently correcting higher.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price started a decent rebound and traded above the $6,000 resistance. Buyers were successful in pushing the price above the $6,200 resistance and the 21 simple moving average (4-hours).
There was a break above the 23.6% Fib retracement level of the last drop from the $7,165 high to $5,861 low. More importantly, there was a break above a crucial bearish trend line with resistance at $6,240 on the same chart.
It has opened the doors for more gains above the $6,400 level in the near term. At the moment, the price is struggling to break the 50% Fib retracement level of the last drop from the $7,165 high to $5,861 low at 6,513-50.
Should bitcoin buyers gain momentum above the $6,513 resistance, the price may perhaps rise towards the next resistance at $6,820, which is the previous support.
On the flip side, if the price corrects lower, the broken resistance near $6,240 and the 21 SMA are likely to act as supports. Below $6,220, the next support is at $6,000. Overall, bitcoin price is positioned nicely above $6,240, but a close above $6,513 is needed for an extended recovery.
Ethereum Price Analysis
Ethereum price nosedived this week and traded below the $320, $300 and $274 support levels against the US Dollar. ETH/USD traded below the $265 level before buyers appeared near the $250 support.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price formed a base at $250 and started an upward move. It traded above the $278-280 resistance and the 21 SMA. Additionally, there was a break above the 23.6% Fib retracement level of the last slide from the $371 high to $250 low.
Finally, there was a break above a significant bearish trend line at $279 on the same chart. These all positive signs and indicate that the price may trade above $300 in the near term.
However, the immediate resistance is $311 and the 50% Fib retracement level of the last slide from the $371 high to $250 low. Therefore, a break above $311 is needed for more recoveries in Ethereum in the near term.
Should there be a downside move, the $278 level and the 21 SMA may provide support. Below these, the price remains at a risk of more losses below $250.
Ripple Price Analysis
Ripple price tumbled and broke many supports like $0.3250, $0.3000, $0.2820 and $0.2650 against the US Dollar. XRP/USD even broke the $0.2500 support and traded as low as $0.2463.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price started a short-term rebound and moved above the $0.2720 resistance. The price also settled above the $0.2800 level, 21 SMA, and the 23.6% Fib retracement level of the last decline from the $0.3565 high to $0.2463 low.
Moreover, the price surpassed a connecting bearish trend line at $0.2820 to clear the path for more upsides. However, the price is currently struggling near the 50% Fib retracement level of the last decline from the $0.3565 high to $0.2463 low at $0.3014.
Besides, there are many resistances on the upside like $0.3100 and $0.3260. Therefore, it won’t be easy for ripple buyers to gain momentum above $0.3200. If they succeed, the price may possibly trade towards the $0.3500 resistance. On the downside, important supports are $0.2720 and $0.2460.
EOS Price Analysis
EOS was one of the worst performers this week as it declined below the $6.00 and $5.00 support levels. A fresh monthly low was formed at $4.17 and the price is currently consolidating losses.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price has recovered a few points above the $4.50 level and the 21 SMA. There was also a break above a bearish trend line with resistance at $4.65.
At the outset, the price is testing the 23.6% Fib retracement level of the last significant drop from the $7.25 swing high to $4.17 low. Should the price clear hurdles near $4.80 and $5.00, it could extend the current correction towards the $5.70 level.
The stated $5.70 resistance is a crucial barrier for buyers since there is a bearish trend line positioned on the same chart. Moreover, the 50% Fib retracement level of the last significant drop from the $7.25 swing high to $4.17 low is also at $5.70.
Therefore, above $5.00, the next important resistance is at $5.70 where buyers will most likely struggle. Conversely, if the price fail to move above $5.00 or $5.50, it may perhaps dive once again.
On the downside, the $4.50 and $4.15 levels hold the key, below which, EOS sellers could push the price below the $4.00 support.
During the last 7 days, two altcoins, OptiToken and Soma gained a lot of traction and rallied 245% and 215% respectively (trading volume more than $50K). A few other coins like TTU, Forkcoin, ICR and WILD also posted gains more than 50%.
To sum up, bitcoin, Ethereum, ripple and EOS are attempting recovery from lows, but they all are facing significant resistance. A proper close above $6,600 in bitcoin and $330 in Ethereum is needed for buyers to gain momentum. If not, there could be a fresh round of selling in BTC and altcoins in the coming days.
The market data is provided by TradingView, Bitfinex.
The post Price Watch: Bitcoin, Ethereum, Ripple and EOS Price Analysis 17th August appeared first on Blockonomi.