The cryptocurrency market has been gaining almost continuously since July 20th. The price of BTC increased by over $ 13,300 during that time, and Ethereum by nearly $ 1,000. Such a significant appreciation meant that the quotations of many cryptocurrency projects found themselves in the vicinity of important resistance zones, where there were significant supply reactions last weekend. So is it time for a correction?
Looking at the quotations of the oldest virtual currencies, we notice that the Bitcoin price rose last week to a highly significant resistance of around $ 42,000, where a supply reaction appeared over the weekend.
If only this zone is rejected, we could expect a downward correction in the near future, as a result of which the BTC rate could slide down to the recently defeated resistance (now support) of $ 36,400.
However, considering that this support coincides with the measurement of 50 per cent — Fibonacci correction from the last upward impulse, it seems highly probable that there will be a demand response again, and Bitcoin will return to gains.
Noticeable increases have also been seen recently on the quotes of Ethereum, the price of which has risen above $ 2,600. It was there that the supply reaction appeared last Sunday, which could signal an approaching downward correction.
If the currently tested resistance is permanently rejected, the price of ETH could slide to around $ 2,390 in the near future. The recently defeated resistance is located, which the market can now respect as significant support.
Therefore, the emergence of demand response could contribute to the emergence of another growth impulse, for which the entire ranges seem to be around $ 2,900, $ 3,200, or even $ 3,600.
Bitcoin Cash quotes are also in the area of significant resistance, the rate of which has increased to around $ 550. This is where a considerable supply reaction took place last weekend. If this zone is permanently rejected, we could expect at least a downward correction in the near future, for which the area of the recently defeated resistance (now support) of $ 475 seems to be the actual range.
Given that this support coincides with the measurement of 50 per cent — Fibonacci correction from the last upward impulse, it seems highly probable that there will be a demand response again, and BCH will return to increases. The real ranges appear to be around $ 645, or even $ 765.
The current situation on Litecoin quotes is also very similar, as the rate has recently increased to the area of technical resistance of $ 150. However, it was there that the supply reaction appeared last Sunday.
If only this zone is permanently rejected, we could expect a downward correction in the near future. The real ranges seem to be around $ 136, $ 128, or even $ 120, measuring 61.8 per cent Fibonacci corrections from the recent upward move.
In practice, only a permanent break above $ 152 could open the way for further appreciation, as a result of which the LTC price could rise to around $ 216.
However, considering Sunday’s supply response, the scenario assuming a downward correction in the near future seems more likely and only after its completion another upward impulse.