Bitcoin



(Bitstamp:BTCUSD 1h)

Bitcoin saw yet another dramatic drop yesterday, blasting straight through support to reach as low as $5920, before retracing to the 38.2% resistance. There was clear bullish divergence on both the RSI and MACD towards the end of the dip, explaining the sharp retrace.

In the short term, the resistance levels to watch for this bounce are at $7625, the 50% retracement and $7888. The previous bounce briefly broke the 61.8% resistance level, so this certainly has room to move higher.



(Bitstamp:BTCUSD 4h)

On the 4h chart we see no divergence on the RSI nor on the MACD. While this does't necessarily mean that the bear trend will continue, it means that there are no obvious signs of weakness. Therefore, we'll have to watch this bounce for the formation of a bearish continuation pattern.







Ethereum



(Bitstamp:ETHUSD 1h)

As has been the pattern recently, Ethereum remains glued to the BTCUSD trend, with the same bullish divergence and bounce pattern. Since we still remain firmly along Bitcoin's path, it is still more productive to be watching Bitcoin price movement as an indicator of where ETHUSD will head next.



(Bitstamp:ETHBTC 1h)

The ETHBTC ratio is still following the BTCUSD trend and looking for a bottom. So far there are no clear support formations, as they just get broken on each new leg of the Bitcoin drop.

We are approaching several historical supports, so we may finally find a bottom between 0.094 and 0.0922, but there are no guarantees until we see at least two failed tests of a support level.







Bitcoin Cash



(Poloniex:BCHBTC 1h)

On the Bitcoin Cash ratio we have broken down even further and are retesting the 0.1241 support. In terms of the support and resistance levels, this would look pretty bearish. However, we appear to be in a loose descending wedge formation along with strong bullish divergence on both the RSI and MACD. This gives us a fairly bullish outlook in the short term, albeit with fairly high risk.

If you wish to take this trade opportunity, I would suggest tight stop losses and/or small position sizes until we see a confirmed break upwards.







NEO



(Binance:NEOBTC 1h)

While Neo is still following in the general trend of Bitcoin, this latest bounce is looking extremely strong relative to that of BTCUSD. The bounce came as a sharp rejection of the 32.8% retrace, which has provided strong support for Neo in the past. This could prove to be the point at which NEOBTC can decouple from the Bitcoin trend again, but we'll have to wait for a confirmed consolidation zone to be certain.







Cardano



(Bittrex:ADABTC 1h)

Cardano has found strong support at the 61.8% retracement and appears to be forming a consolidation zone ready for another move up.

Personally, I would wait until it has consolidated within a range for a few days before entering a position here. If it decides to break upwards prior to that, then it's best to wait for a future consolidation. Trading is as much about limiting your exposure to risk as it is maximising your exposure to profit, if not more so.







Litecoin



(Poloniex:LTCBTC 1h)

Litecoin remains happily within its bullish consolidation zone. Volume still remains relatively high, but after several days with a tight trading range it doesn't seem to be much of an issue. Unless we see a strong break of the support level, then its just a matter of waiting for it to break upwards.







Disclaimer

I will do my best to give unbiased, objective analysis, but I can make no promises about my accuracy.

All posts are based on my personal opinions and ideas and do not constitute professional financial investment advice.