Bitcoin



(Bitstamp:BTCUSD 1h)

Bitcoin broke down from its ascending channel/ pennant, dipping just below the $6550 support. However, volume is relatively low and we're seeing signs of bullish divergence. In this state, it could easily form a bounce unless bearish momentum can significantly pick up on subsequent drops.

That being said, the fact that we've held around support with such low volatility for the last few hours is a bearish sign for Bitcoin, as the bulls couldn't form a proper bounce.

The level that a market sticks to is always telling. In a bull market we look for a consolidation just below a major resistance level as a strong sign. In a bear market, a consolidation just above support makes for a strong bearish signal.







Ethereum



(Bitstamp:ETHBTC 2h)

Along that line of thought, ETHBTC is starting to look a bit stronger as it is holding a support level after bouncing from 0.05395. A push above the 0.05659 support/ resistance level would be preferable here to form a bullish consolidation. But a drawn out consolidation zone above 0.05533 is a possibility.

Volume has been dropping off since the bounce on the 29th/ 30th, making this a good candidate for a consolidation zone. The question just remains as to which direction the market will signal over the next few days.

I recommend holding off on positions for now until we've got a clearly defined direction, as we've seen ETHBTC drift through support several times recently.







Bitcoin Cash



(Poloniex:BCHBTC 4h)

Bitcoin Cash has broken down yet again, and has so far seen little volume as we approach the 0.0905 support. I suspect that we're in for a bounce soon, as the momentum of the trend appears to have dropped off significantly at these price levels. Both the RSI and MACD are currently signalling bullish divergence, again showing weakness to the trend.

If you're shorting, this would be the place to start looking to take profits. For those looking to build up longs, I would wait until we've found a solid support level and/or formed a reversal pattern.







Litecoin



(Poloniex:LTCBTC 1h)

Litecoin has broken down from its ascending channel and is currently holding above 0.01717. Volume was very low on the break, so I'm not expecting this to move much lower. Now we're waiting for the formation of a secondary consolidation zone, by holding around these support levels on low volume and volatility for the next few days. From there we can look at building up positions.







Monero



(Poloniex:XMRBTC 4h)

Monero continues to hold its low volatility pattern confirming the bullish consolidation zone. To reduce risk, it's best to hold a relatively tight stop loss and build up your position near the support. While this is a higher probability trade, make sure to keep position sizing appropriate as there is always a risk.







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.