The ugly sell-off which took place after the unsuccessful test of the $4,280 resistance substantially damaged the technical picture for bitcoin. The cryptocurrency is now expected to extend its slide toward $3,400, while crucial support is offered by the key $3,200 level.
At the current stage, we do not expect a break below $3,200 and favor a development in which bitcoin trades in a range between the latter and $4,300. However, if the cryptocurrency violates $3,200, the long-term downtrend will be renewed, targeting the $3,000 psychological support and beyond.
Currently, we abstain from making deals, as bitcoin is trading right at the middle of the range. Our strategy here will be based on selling as the crypto gets closer to the upper boundary and buying in proximity to the lower one.
Ethereum’s inability to break above the $167 resistance coincided with the broader crypto market weakness yesterday. The heavy selling which followed the unsuccessful attempt at the aforementioned level put the positive tone on this digital currency to an end. With that said, Ethereum is expected to continue sliding lower toward the $100 support. Potential inability of bulls to take control of the situation there would easily send the biggest altcoin to $82, a low not seen since December last year.
In case of a more substantial pullback above $150, we are considering to short Ethereum, targeting $105 and $85 in stages. The stop loss will be placed firmly above $170. The risk-reward ratio at the moment, however, does not justify trading at the present levels.
The sell-off from $0.35 easily took ripple beyond the $0.3150 support, and currently, some consolidation between $0.30 and $0.31 is taking place. Once the lower level is violated, the cryptocurrency will make another leg lower, this time targeting $0.2850. A potential breakout at the latter will expose $0.25 for an initial test.
We prefer staying quiet on this front until XRP approaches the solid base around $0.25. At that point, we would become long-term ripple investors.
The inability to take on $55 and the heavy selling which followed afterward, coincided with the broader market weakness on Sunday. Litecoin’s poor performance yesterday has changed the short-term outlook for the digital currency.
Still, as far as the $41 support is in place, our bullish stance will hold. A potential break below this level, however, will deteriorate technicals and will expose the zone around $30 for a test. Conversely, ability to push above $55 will bring more buyers in, and we will see litecoin rallying toward the $69 resistance.
Just an hour yesterday was enough for about 20% of the EOS value to be wiped out. The painful losses intensified with the breakout at $4.29, at which point panic firmly settled on this market. EOS managed to find support around $3.53 and is currently consolidating between the latter and $3.73.
Although a correction cannot be ruled out at this stage, we favor another dip toward $3.05. Any recovery attempts should lose steam below the $4.00 psychological resistance.