What happened with bitcoin, ethereum and dash over the past 24 hours.
Scenarios for the upcoming trading day
Currently we can see a downward tendency. The hourly charts shows a formation of triangles. Usually, an exit from such figures happens in the direction of a trend. In addition, the outcome is consistent with a scenario that provides a test at the minimums with a subsequent renewal of a downward trend or a return and stabilization in the high-volume region, similar to the one in April.
The hourly chart of bitcoin (Bitcoin) shows that within the next few days the boundaries of the triangle will be broken. Usually the way out from such figures is followed by either a rapid rise or a fall. In the first case, the goal is a local maximum of $6,900 (sellers are interested in protecting it as the price will swiftly reach $7,200). In the second case, the goal is obvious - the local minimum of $6,100.
It’s possible to expect a breakthrough in the upper side of the triangle, with a test of $6,690 (with possible rollback to the triangle border) and then an attack at the $6,900 mark.
Neutral scenario seems unlikely, but the market often does springs surprises. After the borders testing, the price will return to the high-volume area as shown on the graph.
Its possible to expect growth up until $6,500, and then a breakthrough of the lower side of the triangle and an attack at $6,330 and $6,100 marks. If the local minimum does break, the drop of up to $6,000 seems to be a possibility.
The graphs for ethereum (ETH/USD) are similar to those of bitcoin, but the main difference is in the area of a high-volume region, which is lower than the current price (not higher as with bitcoin).
Its possible to expect a breakthrough at the $525 test level, and a subsequent pullback to the lower boundary of the high-volume region of $510 - 535 and then an attack at the $535 mark.
A viable option is the return to the $500 mark with variations at ($493 - 507).
A breakthrough at the lower boundary of the triangle may happen. The attack at the local minimum of ($450 - 468), and a rebound to $480 which is likely if buyers still attend the market (short sellers, fixing profits).In case of a strong fall, ethereum can return to the high-volume region that was seen in April. Some support is seen at the $438 level.
Charts show that dash (DASH/USD) has already left triangle boundaries, but the dynamics of this relatively small cryptocurrency is still determined by the behavior of its senior fellows.
A high-volume region can provide some support to prices as they could return to $260 level. In the event of a favorable market situation, an attack is possible on the level of $270.
The price will vary in the region of $255 - 262.
We can expect support in a high-volume region, the return to the upper boundary and a renewal of a fall as the minimums are tested.
The trade in the cryptocurrency market is associated with high risks and is not suitable for every investor. The above analysis should not be considered as a recommendation or a call to action. Each trader should assess the risks for themselves. Both the author and Insider.pro are not liable for the potential losses incurred.
By Yana Sher