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Crypto Price Forecast: BTCUSD, ETHUSD, LTCUSD Levels to Watch

Crypto Price Forecast: BTCUSD, ETHUSD, LTCUSD Levels to Watch

2020-01-07 21:00:00
Peter Hanks, Junior Analyst
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Bitcoin, Ethereum, Litecoin Forecasts:

Crypto Price Forecast: BTCUSD, ETHUSD, LTCUSD Levels to Watch

Bitcoin exited 2019 boasting a return of roughly 90%, making it one of the best performing assets in the investment world – an astonishing feat given the coin’s abysmal performance in the second half. A few weeks ago, I noted the case for Bitcoin remains grim as fundamental catalysts to spark demand appear few and far between.

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Alongside Bitcoin, other popular cryptocurrencies like Ethereum and Litecoin have faltered similarly as each grasp for support in an effort to stay afloat. However, a modest Bitcoin rally could stoke bullish interest in the shorter-term. With that in mind, here are some of the important technical levels to keep an eye on.

Bitcoin (BTC/USD) Price Forecast

Bitcoin started 2020 in familiar fashion, enjoying a 10% rally to start the year after bouncing off support around the $7,000 level. The rebound helped to drive BTC/USD through the descending trendline from June which has offer robust resistance and kept price pressured. Trading above the trendline, Bitcoin will require further bullish momentum to distance itself and make a run at subsequent resistance, likely around the $9,000 area.

After $9,000 a series of technical levels exist starting with the 200-day moving average around $9,200 to the psychologically significant $10,000 mark. Consequently, the zone will offer staunch resistance to a continued move higher, but a test of this area would require a sizable move to the upside anyway, so expectations should be tempered.

Bitcoin Price Chart: Daily Time Frame (August 2019 – January 2020) (Chart 1)

bitcoin price forecast chart

Still, a break above the descending channel is an encouraging sign in the medium term because it can be used as support moving forward. In the event it fails and BTC slides beneath, the coin will look to employ support around the $7,000 level before the swing lows from November and December come into play around $6,500.

Ethereum (ETH/USD) Price Forecast

Unlike Bitcoin, ETH/USD erased all of its established gains in 2019 to close out the year slightly lower. It is rather unsurprising then, that Ether finds itself probing a similar descending trendline – without the bullish breakthrough. If ETH fails to post a break of its own, it may suffer a deeper divergence with Bitcoin in the months to come.

Ethereum Price Chart: Daily Time Frame (December 2018 – January 2020) (Chart 2)

ethusd price chart forecast

Technical barriers to the topside include the descending trendline around $141, a Fibonacci level at $148 and subsequent resistance at $159. The series of hurdles will look to keep ETH contained, while horizontal support at $131.50 and $117 may provide support.

Litecoin (LTC/USD) Price Forecast

Litecoin managed to post a modest gain in 2019 but trades within a descending channel that has helped to erode the coin’s price. Resistance exists around $47.36, prior to the 76.4% Fibonacci retracement level at $51.44. On the other hand, the lower-bound of the channel will look to provide support if prior horizontal levels at $40 and $35.85 fail.

Litecoin Price Chart: Daily Time Frame (December 2018 – January 2020) (Chart 3)

litecoin price chart

While Ethereum and Litecoin look to catch Bitcoin, they’ll need to pierce their own barriers before a broader crypto rally can take place. Still, Bitcoin’s breakout is an encouraging sign in the medium term. While price action continues to unfold, follow @PeterHanksFX on Twitter for updates.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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