*** Please note the analysis below is not investment advice. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of U.Today. Every investment and trading move involves risk, you should conduct your own research when making a decision.
BTC could make a pullback and so can altcoins!
Yesterday, after the triple top we have seen some downwards movements and we have collected the signs that a movement downwards may happen!
We have a break below the triangle, we have a break below the red trendline which was resistance and now it becomes a support, we have a break below the round number!
At the moment the price retests this round number area and we are ready to go lower! Also, we have a lower low and a lower high price structure which indicates that the leg down is coming but you already know where you can enter the trade if you see a correct price action at this level- $6,700-$6,800! Let's see what the altcoins do in this situation...
Ethereum (ETH/USD) important aspects of staying healthy
Currently, the market looks like it is starting to make a little pullback! BTC has pointed down and shows some pullback signs and so does Ethereum!
We have some signs from the daily timeframe and from the 12-hour timeframe. In the daily timeframe we could see a bearish candlestick pattern called "Tweezer top" and in the 12-hour timeframe there is also a bearish pattern called "Evening Star.” So, this will indicates that we start to make a little pullback also on the ETH/USD chart.
If the price structure wants to stay healthy then the pullback can't be lower than $270-$275. Why? At the moment we have a nice HL at the $270 level but if we drop below that then we make a new lower low and also we have a close below the strong support (blue line) which all indicates bearishness. In the image, you can also see bearish confirmation box, at least the four-hour candle closes in this area could mean disaster for ETH and it may go to around $200.
If we stay 'healthy' and we get a bounce around $270-$275 (bounce is supported by- strong support level and Fibonacci 62 percent retracement level) then we have made a new HL (higher low) and we are ready to climb higher. The first obstacles are the triangle trendline and the round number which is $300. To be fully confirmed that we start to heading upwards we have to make a new higher high which is around $330-$340.
Ripple (XRP/USD) is on the very important area!
At the moment we could see that we are on the trendline cross area! XRP price may go either direction but as you know the market may start to make a little correction! XRP price is currently between the two round numbers which are $0.3 and $0.4. At the moment, it found a resistance from trendline which is pulled from July 4th and if the down pressure stays on XRP price then we will break the minor up-trendline and we will see a movement downwards.
If we start to move downwards then our next stop would be $0.3, there is a round number 0.3 and a Fibonacci 62 percent retracement level! This area has to hold us, if not, then the next stop would be $0.25 where we see a double bottom! But let's see we will keep an eye on Ripple price and we will try to give you some updates about the price action!
To be bullish- we have to take down the minor trendline since July 4th and from there it's almost a clean road to the $0.4-$0.42 but above the $0.42 is very strong resistance levels! If we break upwards then the road to the higher levels could be very-very hard because there are monthly lows, monthly highs and the main down-trendline which is pulled from Feb. 17, 2018.
Hopefully, this helps you out a little bit to confirm your own analysis! Definitely make your own research!
Have a nice day!