Last week the Bitcoin price started a major downward move from the 4,037 USD swing high against the US Dollar. The Bitcoin declined heavily and broke the 4,000 USD, 3,800 USD, 3,725 USD and 3,650 USD support levels.
The cryptocurrency is losing positions on the market, dropping to 3,550 USD on Sunday. Possible targets could be significant support turned resistance 3,700 USD, along with 200 days moving the average line and Fibb retracement level 38.2% of the last decline.
The correction was very modest, up to the significant support turned resistance of 3,700 USD. From there, Bitcoin headed back towards the 3,600 USD area.
The short-term picture from the recent analysis didn’t change much. The next support levels are at 3,600 USD (current area), and 3,480–3,500 USD. The last is a crucial support zone. Breaking it down could lead Bitcoin to discover new lows hadn’t seen yet in 2018. Breaking down the 3,500 USD could send Bitcoin to re-test prior support at 3,300 USD.
Bitcoin price could even break the 3,550 USD support and extend losses. In the stated bearish scenario, the price may extend losses below 3,500 USD and 3,400 USD.
As trading goes, it seems that the chances of a breakdown of $3600 are much higher than those of breaking up. Add to it the 4-hour Stochastic RSI oscillator which is about to cross over around the overbought area.
Other cryptocurrencies are also down with Ethereum losing 6%, EOS wiping out 7% and Ripple dropping by 2%.
The total value of the cryptocurrency market dropped to 117.9 billion USD.
Ethereum Price Analysis
Last week, the price of Ethereum fell below support levels of 146 USD and 140 USD.
Ethereum is even traded under 130 USD and 100 SMA (4 hours). The decline was such that the price tested the final bottom of 120-121 USD. Later the price began to consolidate the losses and traded at levels above 121 USD. The initial resistance is close to the area around 128-129 USD (previous support).
Additionally, the 23.6% fib rating from the last drop from 153 USD to 121 USD is also close to the 128 USD zone. Consequently, buyers will not be able to easily overcome the 128-129 USD resistance area.
If there is a break above 128 USD, the price may climb to the zone of 138 USD. The 100 SMA (4 hours) is positioned close to the 138 USD zone to prevent further profits. What’s more, the 50% Fibre rating from the last drop of 153 USD to 121 USD is 137 USD. Finally, there is a decisive tendency for bearish trend formation with a resistance of 138 USD on the 4-hour chart of Ethereum. Therefore, the levels of 128 USD and 138 USD are the main obstacles for buyers in the coming days.
The price of Ethereum may drop further if there is a breakthrough below the support of 120 USD and 121 USD. The next key support is 112 USD and 108 USD.
Ripple price analysis
Ripple wiped out 3% during today’s trading, but being among moderately performing cryptocurrencies. The Ripple is trading at 0.3192 USD with a total market value of 13.101 billion USD.
Because of the bearish pressure in the market, XRP is currently trading well below the 0.50 USD mark. This shows that it is down by 2.92% against the USD and down by 0.42% against Bitcoin.
Ripple is actually providing a fundamental way for the banks and financial institutions to use the blockchain technology. This enables the use of the cryptocurrency for institutional purposes as well. As there is a fundamental use, the cryptocurrency will increase in value in the future as well. Also, there are many start-ups which will in the future like to use the ripple protocol in order to develop newer solutions as well. This will certainly increase the number of applications of the cryptocurrency.