Bitcoin price fell significantly after sellers successfully pushed it below the $6,000 support. BTC/USD traded towards the $5,500 level and it is currently consolidating losses. There could be a minor recovery in bitcoin and major altcoins like Ethereum (ETH), ripple (XRP), bitcoin cash (BCH), litecoin (LTC), Monero (XMR) and EOS, but upsides are likely to be capped.
- Bitcoin price declined heavily below $6,000 and tested the $5,500 support.
- Ethereum traded below the $200 and $185 support levels.
- Ripple price retested the $0.4340 support area and bounced back.
- EOS declined below $4.50 and settled below the $5.00 support.
- NSD rallied more than 500% and ONL gained around 160% during the past 7 days.
Bitcoin Price Analysis
Bitcoin price failed on many occasions to break the $6,600 resistance level. As a result, there was a downside reaction, and the BTC/USD pair fell significantly below the $6,400 and $6,000 support levels.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price came under a lot of selling pressure after sellers pushed the price below the $6,050 and $6,000 support levels. The price tumbled more than $500 and settled below the 21 simple moving average (4-hours).
During the decline, the price traded below two similar ascending channels at $6,500 and $6,420. A new yearly low was formed at $5,433 before the price started an upside correction. It moved above the $5,500 and $5,600 levels. Moreover, there was a break above the 23.6% Fib retracement level of the recent drop from the $6,500 high to $5,433 low.
However, the price is currently struggling to move above the $5,800 resistance level. In the short term, there could be a few range moves above $5,600. If there is an upside break above $5,800, the price could trade towards the $6,000 resistance.
The stated $6,000 level may act as a major resistance since it was a support earlier and now it also coincides with the 50% Fib retracement level of the recent drop from the $6,500 high to $5,433 low.
Therefore, a major recovery in bitcoin price is very unlikely above $6,000. On the downside, an initial support is at $5,600 followed by $5,500. If sellers gain pace below $5,500, the price may drop towards $5,200.
Ethereum Price Analysis
Ethereum price also followed bitcoin and started a major downside move from well above the $210 level. ETH/USD traded below a few important supports near $210 and $200 to move into a bearish zone.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price broke a major bullish trend line at $211 to started a nasty decline. There was a sharp drop below the $200 support and the 21 simple moving average (4-hours).
The price fell more than $25 and traded below the $175 support as well. A new monthly low was formed at $171 and later the price started consolidating losses. It recovered above the $180 level and tested the 23.6% Fib retracement level of the last drop from the $224 high to $171 low.
At the outset, the price is facing a solid resistance near the previous support at $184. It seems like the price is clearly struggling to trade above the $184-185 resistance, and it may perhaps decline again towards the $170 level.
On the other hand, if there is a break above the $184 resistance, the price could climb towards the $194-198 resistance. Besides, the 50% Fib retracement level of the last drop from the $224 high to $171 low is also near $198 to act as a resistance.
Therefore, if Ethereum price recovers, it is likely to face many sellers near the $194 or $198 resistance. On the downside, an initial support is near $170-172, below which the price could drop towards the $155 level.
Ripple Price Analysis
Ripple price was comparatively stable, but it also declined heavily below the $0.4970 support level against the US Dollar. XRP/USD traded below the $0.4400 support level and tested the $0.4150 area.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price started a sharp decline after sellers cleared the $0.4970 support and the 21 simple moving average (4-hours). It opened the doors for more losses and the price spiked below the $0.4340 support.
However, there was no proper close below $0.4340 and the price recovered sharply from the $0.4155 low. The price jumped above the 50% Fib retracement level of the last decline from the $0.5351 high to $0.5155 low.
The price even traded above the $0.4800 level, but sellers appeared near the $0.4950 level. Besides, the 61.8% Fib retracement level of the last decline from the $0.5351 high to $0.5155 low also acted as a solid resistance.
More importantly, there is a crucial bearish trend line in place with resistance at $0.4970. Therefore, it won’t be easy for buyers to clear the $0.4900 and $0.4970 resistance levels. Above these resistances, the price will most likely move above $0.5000.
On the downside, an initial support is at $0.4700, below which the price could revisit the all-important $0.4340 support area.
EOS Price Analysis
EOS price failed to test the $6.00 resistance against the US Dollar. The price was not able to clear the $5.75 resistance and later started a sharp downside move below $5.50.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price followed a declining channel below $5.50. Later, sellers gained momentum and pushed the price below the channel support at $5.10 and the 21 simple moving average (4-hours).
The price declined heavily and traded below the $5.00 and $4.50 support levels. A new monthly low was formed at $4.29 and later the price recovered a few points. Buyers pushed the price above the 23.6% Fib retracement level of the recent decline from the $5.46 high to $4.29 low.
However, there is a major resistance formed near the $4.90 and $5.00 levels. The broken channel support and the 21 SMA are likely to act as a solid hurdle for buyers near $4.90.
Besides, the 50% Fib retracement level of the recent decline from the $5.46 high to $4.29 low is also near $4.90. Therefore, an upside correction towards $4.90 and $5.00 is likely to face a strong resistance. On the downside, the main support is at $4.50, below which there is a risk of a drop towards $4.00.
During the last 7 days, two small cap altcoins (NSD and ONL) traded higher. NSD rallied more than 500% and ONL gained around 160%. A few other altcoins gained around 50%, including GBC, MXM, DAC, XPX, RPM and RKT (trading volume more than $50K).
Overall, bitcoin price made a sharp U-turn and broke the key $6,000 support. If BTC/USD recovers, the previous supports at $6,000 and $6,050 are likely to act as strong hurdles for buyers. Similarly, major altcoins like Ethereum, EOS, litecoin, ripple, NEO, QTUM, bitcoin cash, ADA, XLM, ZRX and XMR could correct higher in the near term, but gains are likely to be limited.
The market data is provided by TradingView, Bitfinex.