Bitcoin, Ethereum & Ripple Charts: Successful Retest or Breakdown?
- Cryptocurrencies are in 'retest' mode, hold or fold?
- Bitcoin testing trend-line again, a failure here puts a drop below 9222 in focus
- Ethereum & Ripple aren’t at support levels, but still need to hold soon, or else…
Find out what traders are doing in Bitcoin on the IG Client Sentiment page, and what it may mean about future price fluctuations.
Cryptocurrency retest or another leg lower?
The other day we were discussing the possible change in character in price behavior across the cryptocurrency market. If the ‘animal spirits’ have indeed been broken, another big leg lower could soon be in store. We are nearing a point in time which looks like it’s ‘hold or fold’ time for the group.
Last week’s plunge and reversals were extremely fierce, indicating a significant inflection point. The modest weakness we’ve seen in recent days could simply be a retest (a common occurrence at meaningful turning points), and if the case, then we should see the group firm up and turn up.
If a breakdown develops below those spike-low levels, then much lower levels could be seen in short order.
Bitcoin testing trend-line support
Bitcoin (BTC/USD) is working its way back lower while in ‘retest’ mode at the moment, but will need to firm up soon as it has support in the current vicinity. Yesterday, it was below the July trend-line, but managed to close above for a second day in a row.
A close below the trend-line will quickly bring last Wednesday’s spike-low at 9222 into focus. A break below there could be significant, likely bringing in another wave of selling. A hold here and rally will bring the 13k area of resistance back into play, and will need to be overcome if higher prices are to follow.
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Chart 1 – BTC/USD: Daily (log)
Ethereum & Ripple need to hold soon, or else…
Ethereum (ETH/USD) is further off of a retest of the spike-low as Bitcoin is, and yesterday a modest reversal candle was put in. A break below 905 will negate the candle, and have attention shifted towards the November trend-line which arrives not far ahead of the spike-low at 770. Break beneath both trend-line and 770, a much larger decline becomes likely. Looking higher, 1160 will need to be overcome for further top-side momentum to come in.
Chart 2 – ETH/USD: Daily (log)
Ripple (XRP/USD) put in a pair of reversal bars the past couple of sessions. It’s riding lower on a trend-line off the record high, but as long as it holds the Monday low at 1.13, it could start to turn up. Resistance is in the 1.60/70s. A break of this week's low will bring the all-important area around 0.87 into focus.
Chart 3 – XRP/USD: Daily (log)
Whether you’re a new or experienced cryptocurrency trader, we have several resources to help you;Introduction to bitcoin trading guide, indicator for tracking trader sentiment, and a weekly webinar discussing the latest developments.
---Written by Paul Robinson, Market Analyst
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