Weekly crypto-market analysis from Geco.one 21.06.2021
The price of bitcoin has been dropping almost continuously for a week. At that time, the quotations of the oldest virtual currencies dropped by nearly $ 9,000. If this trend continues, we could expect to re-test technical support at around $ 30,000 in the near future.
Looking at the bitcoin quotations, it is worth noting that the BTC exchange rate from the second half of May this year moves in the horizontal trend. From a purely technical point of view, these types of consolidations are corrective patterns, which means that statistically, more often, the market breaks out of them in the direction of an earlier impulse.
Given that the earlier impulse in the case of BTC was a downward move, a possible bottom breakout from the current consolidation seems more and more likely. It means that the price of BTC may not only reach but also fall below the technical support of $ 30,000.
It is worth noting that if only this zone were overcome, in practice, one should prepare for the possibility of a BTC drop even below $ 20,000. It is only there that the next necessary level of support is found.
The thesis about a directional breakout from the consolidation is confirmed by the current situation on the Ethereum quotations, the price of which has been moving horizontally between $ 2300 and $ 2600, respectively. Due to recent declines, however, there has been a breakthrough in this formation, and if the declines continue, we could expect to re-test the $ 1,900 area soon.
Looking at the daily interval, we will notice that if this support were to be defeated, the price of ETH could drop even to around $ 1,420, which would increase the coverage of May 12 this year falls to almost 68 per cent.
We could also expect potential declines in the quotations of the ATOM cryptocurrency, the price of which has been moving for some time in the consolidation between $ 11.5 and $ 17. As a result of the depreciation that has lasted for several days, we are currently observing an attempt to break out of this formation with the bottom. If there is no strong demand reaction that could negate this breakout soon, we could expect a continuation of declines, for which the entire ranges seem to be around $ 9.60 or even $ 6.80.
The current situation on the XRP quotations is also almost identical, the rate of which also recently broke the low from the second half of May this year consolidation. It means that soon we could expect a further decline to $ 0.6355. However, if this support is defeated, then one should even be prepared for the possibility of a continuation of declines down to $ 0.37.
The current stellar trading situation is also pro-decline. The XLM exchange rate has already dropped a dozen or so days ago below the technical support (now resistance) of USD 0.36. As long as this trend continues, the XLM price could drop to $ 0.23 in the near future.