Weekly crypto-market analysis from Geco.one 14.06.2021
The price of Bitcoin increased last Sunday by more than $ 5,000, thus extending the range that lasted from 8th June this year, appreciation to almost $ 8,800, which is over 28 per cent.
Looking at the bitcoin quotes, it is worth noting that the horizontal resistance of $ 37,950 was overcome as a result of this increase. It is also noteworthy that this level was the neckline of the pro-growth inverted head and shoulders formation (oRGR). Therefore, defeating it may open the way to further increases, for which the real range seems to be around $ 42,000.
However, it is possible that before the BTC price rises to $ 42,000, it will first fall to the area of the recently defeated resistance (now support), i.e. to $ 37,950. However, taking into account that this level coincides with the measurement of 38.2 per cent. Fibonacci correction from the last upward impulse, already in its vicinity, could expect a larger demand reaction to initiate another upward impulse.
However, there are no similar reasons for optimism in the quotes of many popular altcoins. The Ethereum price remains within the consolidation between $ 2,300 and $ 2,600.
It is worth noting that this formation resembles only a form of correction after previous declines, which increases the risk that the market will break out of it. A drop below $ 2,300 could, in turn, open the way to further sell-off, for which the actual ranges seem to be around $ 2,200, or even $ 1,950.
We could also expect potential declines in litecoin quotations, the price of which has been moving in a parallel downward channel for some time. It is worth noting that inside this formation, a rectangular ascending triangle has formed in recent days.
As a result of yesterday’s gains, the LTC price reached the area of the horizontal resistance of $ 172.50, which is the upper limit of this formation, where a supply reaction appeared this morning. Permanent rejection of this zone could open the way to declines, for which the actual range is, of course, the upward trend line, which is the lower boundary of the triangle formation. However, if this support is broken, the price of litecoin could slide to the bottom of a similar downturn pattern.
The TRX has also been moving inside the parallel downturn channel for some time. Considering that the price of this cryptocurrency has not yet reached the downward trend line, which is the upper limit of this formation after it has rebounded from its lower limit, short-term increases may continue soon.
Nevertheless, their potential seems quite limited. Only a permanent breakout from this channel could open the way to more significant increases, for which a resistance zone above USD 0.09 would seem a natural reach.
However, if this does not happen, and the downward trend line being the upper boundary of the channel is once again rejected, the TRX price could even slide down to the lower border of this pattern.
You can find more comments on the cryptocurrencies described above and analyse a few more in the market review from Geco.one on Comparic Markets TV.
