Bitcoin nosedived from the $7,420 resistance and trimmed most of its gains. Similarly, major Altcoins like Ethereum, ripple, EOS, bitcoin cash and litecoin fell significantly and moved into a bearish zone. Let’s see whether BTC/USD and altcoins can recover in the coming days.
Key Takeaways:
- Bitcoin price formed a crucial top near the $7,420 level and declined sharply.
- Ethereum broke important supports near $268, $252 and $244 and it almost tested $210.
- Ripple price weakened below $0.3000 before buyers took a stand near $0.2700.
- EOS tested the $5.00 support and it is currently correcting higher towards $5.40 and $5.50.
- Webcoin and karatgold coin surged more than 150% during the past 7 days.
Bitcoin Price Analysis
Bitcoin price was in a solid uptrend this past week as it moved above the $7,000 resistance. This week, BTC/USD extended gains above the $7,200 level, but it faced a strong resistance near the $7,420-7,425 zone.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price failed to clear the $7,420-7,425 resistance zone and started a sharp downward move. The price nosedived below the $7,000 support and broke a crucial ascending channel with support at $6,990.
It opened the doors for more losses and the price tumbled below the $6,800 support plus the 21 simple moving average (4-hours). The decline was such that the price even broke the $6,520 support and the 50% Fib retracement level of the last ride from the $5,865 low to $7,427 high.
It traded close to the $6,300 level and the 76.4% Fib retracement level of the last ride from the $5,865 low to $7,427 high. BTC/USD is currently consolidating losses above the $7,300 level and is trading inside a short-term breakout pattern.
On the upside, it is facing resistance near the $7,520 level. If bitcoin succeed in trading above the $7,520 resistance, it could revisit the $6,800-6,820 zone (the previous important support).
Clearly, the recent bearish break changed the bias to bearish with immediate supports near $6,250 and $6,000. The most important support is at $5,865, below which the price could tumble further. On the other hand, the price has to settle above $6,800 to move into a positive zone.
Ethereum Price Analysis
Ethereum price was one of the worst performers as it declined sharply from the $303 swing high against the US Dollar. ETH/USD started a downside move after it failed to settle above $300 and broke a major support zone near $268-270.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price started a sharp decline and settled below the $250 support plus the 21 simple moving average (4-hours).
It cleared the path for sellers to take control and they pushed the price towards the $210 level. A low was formed at $211 and the price is currently trading in a range. An initial resistance is the 23.6% Fib retracement level of the recent drop from the $303 high to $211 low.
If the price succeeds in clearing the $232-235 zone, it could correct towards the next major resistance at $250-255. More importantly, the 50% Fib retracement level of the recent drop from the $303 high to $211 low is near $257 and the 21 simple moving average (4-hours).
Therefore, if the price corrects higher, it is likely to face a strong resistance near the $255-257 zone. Once the current correction is complete, the price may well move back towards the $220 and $210 levels. The most important support is at $200, below which the price could slide to $180.
Ripple Price Analysis
Ripple price also faced an increased selling pressure from the $0.3550 swing high against the US Dollar. XRP/USD struggled to move past the $0.3550 and $0.3600 resistances, resulting in a bearish break.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price was moving inside a triangle pattern with resistance at $0.3550. Once bitcoin price started declining, ripple followed and broke the triangle support near the $0.3320 level.
It set the pace for more declines and the price traded below the $0.3000 support and the 21 simple moving average (4-hours). Moreover, there was a break below the 50% Fib retracement level of the last upward move from the $0.2459 low to $0.3738 high.
The price spiked below the $0.2700 support and the 76.4% Fib retracement level of the last upward move from the $0.2459 low to $0.3738 high, but later recovered.
The current technical structure and candle formation is positive above the $0.2700 level, but the price is facing many hurdles near the $0.3000 and $0.3100 levels.
Ripple buyers need to push the price back above the $0.3100 level and the 21 SMA to start a fresh bullish wave. If not, it could decline back towards $0.2700 and $0.2500 in the near term.
EOS Price Analysis
EOS traded nicely this past week and earlier this week as it moved above the $6.00 resistance against the US Dollar. The price even traded above $6.50, but it faced a strong hurdle near $6.80.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price topped at $6.83 and later dropped sharply. During the decline, there was a break below the $6.00 support and two bullish trend lines with supports at $6.60 and $5.90.
The price also settled below the $5.60 support, the 50% Fib retracement level of the last wave from the $4.50 low to $6.83 high, and the 21 simple moving average (4-hours).
EOS tested the $5.00 support and the 76.4% Fib retracement level of the last wave from the $4.50 low to $6.83 high where buyers emerged. At the outset, the price is currently correcting higher inside an ascending channel with support at $5.10.
If the price breaks the channel and trades above $5.50, it could test the $5.60-65 resistance (the previous support). Above this, eos will most likely move into a positive zone towards $6.00 and $6.20.
On the other hand, a break below the $5.10 and $5.00 supports could accelerate losses. The next support is near the $4.50 low, below which the price might test the $4.20 level.
Top Gainers
During the last 7 days, despite sharp losses in bitcoin and major altcoins, a few small cap altcoins rallied more than 100%, including WEB, KBC, IG, ABX and FRGC (trading volume more than $50K). A few coins gained between 50-75% like QNT, Bitcoin Diamond, LYM, DGTX, TMC and MLN.
Overall, bitcoin sellers are back in control, but if buyers succeed in pushing the price back above $6,800, BTC/USD could recover in the coming sessions along with altcoins like Ethereum, EOS, litecoin, ripple, neo, bitcoin cash, binance coin and ONT.
The market data is provided by TradingView, Bitfinex.
The post Price Watch: Bitcoin, Ethereum, Ripple and EOS Price Analysis 7th September appeared first on Blockonomi.
September 07, 2018 at 04:47AM https://blockonomi.com from Blockonomi https://ift.tt/2oMBt4b
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