The crypto market has been ostensibly volatile over the past few months, with people asking themselves if it is the right time to invest. BTC price fall means analysts remain divided over whether it is entering a bear market or just suffering a brief correction on the road to more record highs. Investors who bought early are still in profit despite the recent price crash. The more the price falls, the more comparisons will be drawn to the Great Crypto Crash of 2017/18. It may be a bit early for the four-year cycle to end, but the level it has fallen is now very familiar. More than half of bitcoin's value has now been wiped away since its ATH in mid-April. Cryptocurrency prices are at their lowest since the start of the year. While some are cashing out if it falls further, others are hoping this might be a great buying opportunity. Undermentioned are the technical analysis of BTC and a few other coins.
BTC/USD
In the medium to long term, BTCUSD is developing slowly in a declining trend channel. This suggests that investors are becoming increasingly pessimistic, implying that Bitcoin will continue to drop. After the bearish signal from the head and shoulders structure at the breakage through the support at $48030, the price has dropped significantly. Although the aim at $38326 has been attained, the formation indicates that more development in the same direction is on the way. Points $33000 are proving to be a stumbling block for the currency. This may elicit a negative response, but an upward breakthrough of $33000 indicates a good indication. Previously, volume was low during price peaks and high at price troughs.
This is in line with the general trend. Generally, the currency is considered to be bearish in the medium to long term.
Indicators
Many investors will use a horizontal trendline since the RSI indicator is nearing 40%. This isn't encouraging since the curve has dropped from 46 percent, indicating further negative conditions.
The MACD signal has been negative over the previous three days, with a high degree of consistency. This is indicated by the histogram's height and the curves' constant interlocking.
ETH/USD
Following a closing below $2,000, ETHUSD, like BTCUSD, continued to fall. ETH price even broke the support level of $1,920 and fell significantly below the 100-hour average move.
Nearly $1,865 was formed, and the price has been upside-down recently. There was a break over the resistance levels of $1,920 and $1,950. In the hourly chart of ETH/USD, there was also a break across a connecting negative trend line with resistance close to $1,945.
ETHUSD even soared beyond the barrier of 2,000 dollars. The price, nevertheless, is over $2,050, and the average move is around 100 hours. A peak rate of about $2,039 is created, and presently, the price falls.
It broke over the 23.6 percent Fibonacci retracement level of the upward advance from the swing low of $1,865 to the high of $2,040. On the upside, a strong resistance zone at the $2,050 zone and the 100 hourly Simple Moving Average are visible.
There may be a significant gain if ether settles over $2,050. Near the $2,080 mark, the next significant resistance is found.
ETHUSD may continue to fall if it fails to rebound above $2,040 and $2,050. On the downside, $1,980 serves as a first support level.
Near the $1,950 level, the first big support is found. The $1,950 level is also around the 50 percent Fibonacci retracement level of the bullish advance from the $1,865 swing low to $2,040 high.
Indicators
The RSI index for ETHUSD is hanging around 40%, indicating a negative season is approaching. It's also a challenge for the couple since every time they progress higher, an almost opposing force pushes them back down.
With a high level of inconsistency, the MACD for ETHUSD is steadily gaining traction in the negative zone, with histogram bars at odds with one another.
XRP/USD
Since the beginning of June, XRP has been following a falling resistance line. It eventually broke above the line during the first week of June after a series of unsuccessful breakout efforts.
It dropped after that, confirming the line's status as a support line (green icon). Although XRP is yet to go higher, the RSI has created a positive divergence.
The price of XRP is presently falling, and it has even fallen below USD 0.620. Near the USD 0.600 level, the primary breakdown support exists. A closing below USD 0.600 may trigger a bigger loss, with the price potentially falling below USD 0.520.
The nearest resistance levels are $0.80-$0.87. (0.5-0.618 Fibonacci retracement resistance levels).
Indicators
The RSI index was hovering around 37, which made the hodlers a bit pessimistic.
The MACD signal is approaching the positive threshold, indicating that the market is ready to take a step ahead and achieve higher price levels.
LTC/USD
LTC is now trading at $128. From the starting price of $130, the price has dropped by around 3%. As a result, the market appears to be bearish. On the daily chart, LTC is also forming a very important narrow range. The trend for LTC will be confirmed if it breaks out from this level.
If this level is broken, new highs will be reached. However, if the price breaks below $128, the negative trend would be confirmed, and the price might challenge the critical support level.
The MACD and signal lines on the daily chart have just entered the negative zone. There is also a bearish crossover of the signal line over the MACD line.
As a result, the general market momentum appears to be negative, and the LTC price is likely to decline for the remainder of the day. Also, if the price stays above the support level for a few days, then there's a good possibility of moving to the upside.
The price is currently trading below the $130 Fibonacci pivot point. We might expect the price to go below the first Fibonacci pivot support level of $122 soon since certain oscillators have given negative signals.
The price has reached the $139 Fibonacci resistance level. If the price rises from the FIB extension level in a reasonable amount of time, the price upswing is likely to be robust. In such a situation, the price will almost certainly climb.
Indicators
The RSI index dropped near the 35% mark, giving investors less hope for the days ahead. The negative MACD signal reduces investors' confidence in short-term prospects.
A bearish divergence is building. As a result, selling pressures are gradually increasing. As a result, we anticipate a price decrease.
BCH/USD
BCHUSD is in a bearish trend and is approaching its support zone. Technical indicators are also nearing oversold territory, suggesting a short-term pullback or rebound back.
Furthermore, the currency is now trading around a solid support zone of $440 and $390, with volume in need of improvement. The currency is now trading at $447, with a -5.28 percent daytime loss and a volume to market cap ratio of 0.14.
Bitcoin cash has experienced a severe selloff in recent trading sessions, with lower highs and lower lows.
The coin had been rejected by the 20-Displaced Moving Average and had fallen below all important moving averages. Volume is tracked on a monthly chart and dips below the average line, improving in future trading seasons. Lower-level support is at $440 and $390, while higher-level resistance is at $560 and $650.
Indicators
The RSI index is now lurking around 36, indicating that the price will continue in the same direction. The MACD is negative, indicating that it is in lockstep with the market. The market patterns will most likely become clearer in the following days.
Correlations
- Bitcoin / Ethereum = 0.90
- Bitcoin / Ripple = 0.86
- Bitcoin / Litecoin = 0.88
- Bitcoin / Bitcoin Cash = 0.83
The present strong correlation between BTC and other tokens (such as the current correlation between BTC and ETH) indicates that if the price of BTCUSD rises considerably, ETH's value will rise as well. This is especially evident when there are big price swings. In the cryptocurrency market, the majority of coins' values move in tandem with one another.
Altcoins like LTC and BCH have developed a strong correlation with BTC over the last few weeks. This implies that with the advent of a bullish trend in the near future, the market will most likely continue in the same direction. We expect the correlation field to increase even more in the coming days as a result of the compression.
Key Notes for Today
- In the medium to long term, BTCUSD is developing slowly in a declining trend channel.
- BCHUSD is approaching a solid support zone.
- Following a closing below $2,000, ETH, like BTCUSD, continues to fall.
