Over the past few days, the price of Bitcoin has dropped by nearly 18,000 USD (-27.38%), from less than 65,000 USD down to 47,000 USD, the lowest valuation of this cryptocurrency since the beginning of March this year. However, the last hours have brought a noticeable increase in the quotations of many cryptocurrencies. The price of BTC increased by over 6,000 USD, followed by the rates of many altcoins. Is this “the end” of the correction that has been going on for almost two weeks?
Looking at the Bitcoin quotes, we notice that due to the increase that continued from yesterday, the quotations of the oldest virtual currencies negated the earlier breakout of the support amounting to 51,000 USD and are again above this level. From a purely technical point of view, we could expect a further appreciation of BTC in the near future.
On the 4-hour interval, however, we will see that due to the recent increases, the BTC price has reached the local resistance of 53,200 USD. Therefore, if there is a supply response around this level, it cannot be ruled out that we will have readings with a downward correction soon. The real range seems to be around the recently defeated resistance (now support), i.e. 51,000 USD. Perhaps only the rejection of this zone will initiate another growth impulse.
The current situation on the Bitcoin Cash quotes is also very similar, the rate of which has recently slipped to the level of the horizontal support of 730 USD and measuring 61.8 per cent. Fibonacci correction from the earlier upward move, where the first demand reaction appeared last Friday. Today in the morning, we also observe increases, and if this zone is rejected, we could expect this trend to continue in the near future.
Looking at the BCH quotes from the point of view of the 4-hour interval, we notice that the market has been in a horizontal trend between 730 USD and USD 842 USD for some time. It is also worth noting that the upper bound of this consolidation coincides with the measurement of 50%. Fibonacci corrections from an earlier downward move.
In practice, it turns out that only breaking above 842 USD could open the way to more significant increases in Bitcoin Cash quotes.
On the other hand, the current situation on the Ethereum quotations looks more and more optimistic, as the rate has recently slipped to the area of previously defeated resistance (now support) of 2,140 USD. It was there that the greater demand response appeared, and for the second day in a row, we are observing increases in the quotations of this project. If this trend continues, we might expect a new record of backward times (ATH) to be set in the near future.
We could also expect potential gains in the Cardano trading. Its rate has recently rebounded from the technical support of 0.96 USD. So if the appreciation continues, we could expect to re-test the upper bound of the long-lasting consolidation, i.e. the resistance of 1.48 USD, in the near future.
More comments on the cryptocurrencies described above and an analysis of several more can be found in the market review from Geco.one on Comparic Markets TV and the Geco.one website.
