The cryptocurrency market has been seeing a small wave of bullish buying over the past month as many of the large altcoins experience some well sought-after gains. Ripple, for example, had rocketed over 200% at one point during September 2018.

The current total market capitalisation for the entire industry is currently sitting around $221 million;

Let us continue to analyse price action for BTC, ETH and XRP over the short term.

Price Analysis

Bitcoin

BTC/USD – SHORT TERM – DAILY CHART

Bitcoin continues to trade within the confines of the descending wedge formation that has been established over the trading year. In our last BTC analysis, Bitcoin was trading underneath the $6400 area. Price action has since rallied higher slightly and is now trading at the long term resistance level at the long term .786 Fibonacci Retracement level priced at $6622. This price level has been a pivotal market for price action to break above before continuing onto rally higher.

If the bulls can regather momentum from this area, we expect immediate resistance to be located at the upper boundary of the triangle pattern. If price action can break above the upper boundary, we can expect further resistance higher to be located at the short term .618 Fibonacci Retracement level (drawn in red) priced at $6845. This area of resistance also contains the 100 day moving average further bolstering the expected resistance in this area. Further resistance above this level can be expected at the psychological $7000 round number handle followed by the .5 and .382 short term Fibonacci Retracement levels priced at $7165 and $7481, respectively.

Alternatively, if the bears regain control of the market and push price action lower, we can expect immediate support to be located at the short term .786 Fibonacci Retracement level priced at $6398. Further support located below this can be expected at the .886 Fibonacci Retracement level priced at $6129 followed by the psychological round number handle of $6000.

The RSI is currently trading at the 50 handle indicating that the market is still unsure as to which direction it would like to head toward next. If the RSI can break above the 50 handle this would indicate that the momentum has shifted toward the bulls favour and we could then expect BTC to make some further gains.

Ethereum

ETH/USD – SHORT TERM – DAILY CHART

Ethereum has recently broken out above our long term descending trend line we have been following for the majority of the year. However, as price action broke above the trend line with relatively low volume this could suggest that the trend line needs to be adjusted slightly. However, only time will tell as the next few trading sessions should reveal more details regarding this.

Ethereum is currently trading at a long term downside 1.414 Fibonacci Extension level (drawn in red) priced at $226.98. If the bulls can gather momentum at this support level and push price action higher, we can expect immediate resistance to be located at the previous downside 1.618 Fibonacci Extension level (drawn in blue) priced at $271.95. We can see that this price level had provided significant support for the market during August 2018 and therefore it is expected to provide an equal level of resistance moving forward.

If the bulls can continue higher above $271 then the next level of significant resistance can be expected at the psychological $300 handle followed by the long term .886 Fibonacci Retracement level priced at $337.73. This area of resistance is further bolstered by the 100 day moving average which is currently hovering around the same area further adding to the expected resistance.

Alternatively, if the bears push the market back below the $226 handle we can expect immediate support below to be at the psychological round number handle of $200. Further support below this can be expected at $197.73 which is the September 2017 low followed by the short term 1.272 Fibonacci Extension level (drawn in turquoise) priced at $181.88.

The technical indicators within the market are currently producing largely neutral readings as the RSI trades along the 50 line. If we are to expect any gains within this market we would need to see the RSI break back above 50.

Ripple

XRP/USD – SHORT TERM – DAILY CHART

Over the past 2 weeks, Ripple has seen an extraordinary price increase totalling over 200%. We can see that price action had found support at the downside 1.618 Fibonacci Extension level (drawn in blue) priced at $0.26695 during August 2018. After double bottoming at this support level during September 2018, we can see price action went onto produced an incredible bullish run.

We can see that price action rallied above the long term .786 Fibonacci Retracement level priced at $0.7548 to meet resistance at the 1.618 Fibonacci Extension level (drawn in purple) priced at $0.7960. After meeting this resistance price action has rolled over and began to decline.

We can see that the market has fallen and is now currently trading at the short term .5 Fibonacci Retracement level (drawn in green) priced at $0.5280. If the bears continue to pressure price action lower, we can expect immediate significant support to be located at the short term .618 Fibonacci Retracement level (drawn in green) priced at $0.4659. Further support located below can then be expected at the downside 1.272 Fibonacci Extension level (drawn in blue) priced at $0.4242 followed by the long term .886 Fibonacci Retracement level priced at $0.40.

If the bears continue even further lower then more support can be expected at the downside 1.414 and 1.618 Fibonacci Extension levels (drawn in blue) priced at $0.3596 and $0.26695.

Alternatively, if the bulls can regain control of the market and push price action above $0.5901 we can expect immediate significant resistance to be located at the 1.272 and 1.414 Fibonacci Extension levels (drawn in purple) priced at $0.68 and $0.7278, respectively. Further resistance above this level can then be expected at the .786 Fibonacci Retracement level priced at $0.7548 followed by the 1.618 Fibonacci Extension level priced at $0.7960.

The technical indicators within the market are currently favouring the bulls as the RSI trades above the 50 handle. However, the recent decline of the RSI could indicate that the bulls previous momentum is starting to fade. If the RSI can remain above 50 we can expect the market to continue to make gains.