BTC/USD, LTC/USD, XMR/USD, NEO/USD declined sharply yesterday meaning the end of a deep correction, started Thursday. Bears established new lows confirming they are still in the game and have total control over the markets.
There are signs of a short-term correction that is likely to start within the next couple of hours. However, the midterm outlook is negative as almost all of the reviewed currency pairs stay below their midterm descending trend lines.
The currency pairs may fall even deeper after this correction. We advise looking for clear candlestick signals in order to take meaningful decisions.
BTC/USD
The currency pair started to fall during the American and continued the downside tendency within the Asian session. There was a Flag pattern in the middle of this short-term downtrend. Bitcoin is currently close to the support line (8,886 area) and the descending trendline testing both of them.
Bears had no difficulties to cross the Ichimoku cloud during the US session with a long body candlestick. Bitcoin price is far from the formation currently signaling temporary changes in moods.
There was a reversal signal a couple of bars ago (reversed Hammer). Bulls are able to start a correction at least. The closest target for it is the resistance line at 9,035 area. BTC price can reach this level in a couple of hours.
Another scenario for Bitcoin is to develop its downside tendency. Bears will break the ascending scenario in this case as BTC price will fall below the descending trend line.
The situation is still unclear on the daily chart as BTC price has entered the Ichimoku cloud opening an opportunity for bears to push Bitcoin even further towards the lower border of the Ichimoku cloud at midterm.
LTC/USD
There was a bad day for Litecoin bulls as well as LTC/USD started to decline during the American session and developed the local downtrend during the Asian session. LTC price crossed the lower border of the Ichimoku cloud, the support line, residing at 154.14 area, and the descending trend line, confirming the temporary change of trend.
The situation is intriguing currently as LTC/USD is likely to start a correction (we have a Hammer candlestick pattern) and to test the descending trend line from below. If bulls succeed, they have an opportunity to regain initiative and to test the closest resistance line at 154.14 area. If they fail to cross the descending trend line, LTC price will probably fall below the support line at 146.29 area.
Cryptocurrency is far from the Ichimoku cloud now signaling bears are dominating the market for the moment. If LTC/USD stays below the descending trend line, the currency pair will confirm its midterm downside tendency.
The currency pair still stays within the Ichimoku cloud on the daily chart and seems to aim the lower border of the formation at midterm. There are no clear signals currently and we advise to midterm and long-term traders to wait until the price finds support and demonstrates any signal in order to open positions.
XMR/USD
Monero fell below the descending trend line confirming the downtrend. Monero price crossed the Ichimoku cloud during the American session and a couple of support line within the Asian session. XMR/USD is below the support line at 214.54 area. We think that Monero is going to test this level in the next couple of hours. The currency pair looks to start a correction at least.
There are two scenarios here. XMR price may return to 214.54 area, test it successfully and go higher. Bulls will have an opportunity to reach the next resistance level at 219.70 area. This may happen today. The next target for the buyers is the descending trend line in the case. However, to reach all those goals, bulls need a deep correction at least.
Bears scenario will be available in case of failure of the current resistance line test. XMR/USD is likely to fall further towards 204 area as there are no clear supports on the way (they may appear, however).
As for the daily chart, XMR/USD continues to fall towards the lower border of the Ichimoku cloud. The closest midterm support lies within the 204 area (coincides with the closest hourly short-term support line).
Monero price is far from the long-term descending trendline meaning bears have total control over the market.
NEO/USD
The currency pair followed its allies and went downwards during the American and Asian sessions. NEO/USD left the Ichimoku cloud and crossed a couple of levels including descending trend lines on the hourly and daily charts. There was a long-tailed Hammer pattern a couple of hours ago meaning the currency pair is likely to start a correction. The currency pair is far from the Ichimoku cloud at the moment. The situation favors bears in general as the price is below trend lines meaning sellers are in control over the market now.
NEO is close to the descending trend line currently and is likely to test it in the next couple of hours. If bulls succeed, the next target will be at 72.32 area, where the next resistance line lies. In case of failure, bears are likely to take the initiative in their hands and to develop their progress below the support line at 68.26 area.
As for the daily chart, NEO is still within the Ichimoku cloud and seems to aim at the lower border of the formation. We think that the currency pair is likely to reach this line in the nearest future. NEO is also below the long-term descending trend line and this can be the signal for the currency pair to start its global decline in the nearest future. However, bulls still have chances to take control of the situation.
Tomiwabold Olajide
Godfrey Benjamin
Gamza Khanzadaev
