The crypto market keeps correcting; there have been no strong movements yet, but the risks of declining grow.
The leading cryptocurrency might be accumulating energy for another wave of growth as the execution of a Triangle pattern.
However, this idea may only be confirmed by a breakaway of the upper border of the pattern.
As for now, we might expect a bounce off the lower border of the pattern and an attempt of the bulls to attack $11,005.
At the same time, the unwillingness of the leading digital asset to go up and constantly shrinking maximums betray the weakness of buyers.
In this case, a breakaway of the lower border of the pattern may provoke a serious bullish correction, in which case the altcoin market may drop even deeper, having no time to recuperate after the current decline.
The leading digital currency keeps pushing off the important support level of $9,190.
The Moving Averages demonstrate that the uptrend preserves and the bulls are present on the market, keeping the price of the BTC inside the Triangle.
Anyway, the appearance of such a pattern entails uncertainty until the quotations escape it.
However, as long as the price is just pushing off the lower border, we may only speak about a bounce upwards and an attempt of the development of an uptrend.
The latter may be confirmed by a breakaway of the nearest resistance level and securing above $11,005.
The negative factor, impeding the future growth, is the decline of the maximums, which might mean a possible breakaway of the lower border of the pattern and further descending.
Now, we may see that the prices have not reached the upper border of the Triangle yet; in the case of a strong test of the lower border, the bulls may easily push the quotations even deeper down, which, in the end, will provoke another correction to $7,175.
Technical analysis of the H4 suggests the formation of another reversal Head and Shoulders pattern.
Earlier, we saw such patterns forming, but the market did not rush at their execution.
Here, an interesting area for a bounce and the beginning of growth is the level of $9,500, where the completion of the right shoulder is expected.
A supplementary signal, confirming the growth, might be a test of the support line on the Stochastic Oscillator; what is more, we have already seen bounces off the oversold area.
A breakaway of the upper border of the descending channel and securing above $11,005 may confirm the readiness of the digital asset to move upwards.
However, the pressure from sellers should not be underestimated as it may provoke a breakaway of the minimum and cancellation of the pattern, which will mean further declining.
The ETH/USD quotations have bounced off the resistance level again and are now likely to decline to $145.00.
As we can see, the MAs have already crossed one the other, which means the restoration of the bearish impulse.
Another signal confirming the short-term decline to the target level is the upcoming test of the resistance line on the Stochastic.
Near $145.00, we should expect the end of the descending and the beginning of growth as a part of a Bullish Wolfe Wave execution.
The aim of such a movement may be at $270.00.
The positive scenario may no longer be valid if the level of $120.00 is broken away, in which case the aim of the decline will be around $100.00.
On H4, the quotations are correcting inside a descending channel. The MAs are also heading downwards, which suggests a mid-term bearish impulse.
There has been a bounce off the resistance level and now we should expect further falling to $145.00 as the main scenario.
Another signal confirming this movement may be a test of the upper border of the descending channel as well as another bounce off the resistance line on the Stochastic.
The scenario may no longer be valid in the case of a strong growth, a breakaway of the upper border of the descending channel and securing above $198.00.
If this happens, another aim of the growth may be around $240.00.
The EOS quotations have managed to push off the lower border of the Ichimoku Cloud.
This still means a downtrend and pressure from sellers; however, it should be noted that the bears have failed to secure under the lower border of the ascending channel.
As the main trading idea, we should expect further falling with the aim around $2.06.
A strong additional signal in favor of such a scenario may be a test of the resistance line on the RSI.
The scenario may be confirmed by a breakaway of the lower border of the ascending channel and closing under $3.06.
The variant may no longer be valid in the case of strong growth, a breakaway of the upper border of the Cloud and securing above $5.00.
In this case, further growth and a return of the bullish trend should be expected.
On smaller timeframes, the EOS is correcting, remaining inside the descending channel, though.
Further development of the ascending correction and a test of the resistance level of $4.46, then a correction with the first aim at $3.06 are to be expected.
Such a movement should be confirmed by another test of the resistance line on the RSI.
A strong signal of the development of a descending impulse may be a breakaway of the support level and securing under $3.00.
The negative scenario may be canceled if the quotations escape the descending channel and secure above $4.45, in which case the closest aim of the growth will be around $5.45.
The bulls have managed to push the price off the lower border of the Bollinger Bands; however, the important resistance level around $78.00 remains untouched.
That is why it is too early to speak about the end of the falling and the beginning of growth.
The reversal Head and Shoulders pattern remains not executed; it still points at a probable aggressive continuation of falling.
The negative scenario for the buyers may be confirmed by a bounce off the resistance line on the RSI.
As we may see, the indicator values have neared this line but there has not happened a full-scale test yet.
The movement to $40.00 and below might be confirmed by a breakaway of the support line and securing under $55.20.
The scenario may no longer be valid in the case of strong growth and a breakaway of $78.25, which will mean resuming of pressure from the bulls and a good potential of moving towards $107.80; in the end, this may cancel the reversal pattern and further develop of the ascending impulse.
On H1 of the Litecoin, an interesting area for short positions seems to be around $76.35.
Here, the upper border of the descending channel is situated; at the moment of such growth, a test of the resistance line on the RSI may happen.
All these signals will be in favor of a potential bounce and the beginning of descending with the first aim around $61.60.
The scenario may be canceled if the quotations escape through the upper border of the descending channel, which will mean a breakaway of the resistance line and further correction with the first aim near $92.50.
On D1, the Bitcoin Cash remains under the bearish pressure.
As we may see, there is still a potential for falling and the beginning of the execution of Head and Shoulders with the first aim of around $177.35.
Moreover, the quotations are testing the lower border of the Ichimoku Cloud, which signifies a downtrend.
Earlier, there has been a bounce off the lower border of the Cloud. The third signal confirming the possible descending is the test of the resistance line on the RSI.
However, it should be noted that the sellers have failed to secure under the support level of $248.45.
The scenario may be canceled if the upper border of the Cloud is broken through and the quotations secure above $358.65.
This will mean a reversal of the current trend in favor of the bullish one and the beginning of ascending.
On smaller timeframes, the digital asset is testing the upper border of the descending channel, which suggests a bounce and a decline.
A supplementary signal here may be a bounce off the trendline on the RSI.
The decline may be confirmed by a breakaway of the support area and closing below $248.45.
The short-term scenario of descending may be canceled in the case of strong growth and a breakaway of the upper border of the descending channel with securing of the BCH/USD quotations above $325.00.
This will mean further correction with the first aim at $358.65.
The weekly Crypto Technical Analysis is provided by Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
Needless to say, all statements and views expressed above and any forecasts contained herein are solely based on the author’s particular opinion.
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