Bitcoin



(Bitstamp:BTCUSD 1h)

Bitcoin is finally pulling back a bit after reaching $11780 with bearish divergence. There is a definite uptick in volume on the bearish candles, suggesting that the market was waiting for this to happen. However, volume is so far lower on the second leg of the drop, and the RSI and MACD haven't yet pushed to new lows. If they haven't formed new lows by the next retracement of the drop, then this trend will start to look pretty weak.

The current support level to watch comes at around $10153, which also aligns with the 38.2% retracement of the recent movement. Past this, there are a lot of support levels all the way down to $9097. If this movement gains enough traction, then a retest of the $7k levels might be in order to form a good double bottom for Bitcoin, but this remains to be confirmed.







Ethereum



(Bitstamp:ETHUSD 1h)

As expected, Ethereum is following Bitcoin in the pullback and has broken through the $905 support. However, it has dropped hard, as opposed to the slower descent that I hoped for due to the partial consolidation. It will almost certainly continue to drop, along with the rest of the crypto market, as long as Bitcoin does. We will have to wait for a decent support level to be found on Bitcoin before we can look for any new bullish positions.



(Bitstamp:ETHBTC 1h)

On the ratio, we look to be forming a nice double bottom, although the increased volume on the second dip is slightly concerning. If we can see a decent break of the 0.08145 resistance then this could form a good reversal pattern. However, a weak break followed by a quick retrace would likely form a bearish continuation pattern, such as an ascending wedge.

It may be wise to stay out of the market altogether until there is a good support level formed or a predictable pattern to Bitcoin's trend. But, if you have the risk tolerance, catching a strong bullish reversal is a good trade.







Bitcoin Cash



(Poloniex:BCHBTC 1h)

Bitcoin Cash is seeing a similar bounce to ETHBTC, however doesn't quite have the double bottom structure. It has, however, bounced just above the 0.1207 support which market the bottom of the last dip. This historical support could provide a good level for a reversal pattern.

It is always advisable to wait for a good confirmation signal before entering a trade. In this case, a bounce off support or a high volume break through the 0.1280 resistance at least.







NEO



(Binance:NEOBTC 1h)

Neo, too, is seeing a similar bounce pattern. This is looking like a cleaner double bottom, with a lower volume on the retest dip. A high volume break of the 0.01153 resistance and the descending resistance line would give good confirmation of a reversal signal.







Litecoin



(Poloniex:LTCBTC 1h)

Litecoin is also following Bitcoin in the drop, breaking from its suspected secondary consolidation which followed the break upwards. We're currently retesting the 78.6% retracement of the major movement along with the support of the descending wedge. If we can form a good support level around here, then we can start looking for another buying opportunity. But, for now, Bitcoin seems to be the driving force in the market as a whole, so trading remains fairly risky.







Monero



(Poloniex:XMRBTC 30m

In contrast to the rest of the market, Monero has seen a strong bounce from the 100% retracement of its larger move and is forming a sharp bullish flag. Volume is dropping off quickly during the pullback, supporting the theory of a bullish consolidation pattern.

The 50% retracement is a common support level for a pullback, so is the first level to watch. Once a bottom is in place, then we can start looking at the target price and risk for the next leg up.







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.