Bitcoin



(Bitstamp:BTCUSD 1h)

Bitcoin continued to drop against the bullish divergence to reach as low as $9600. The divergence eventually caused a pullback above the 38.2% support. Overall, this is still a very shallow retracement of the bullish movement after the $6k bounce, so further bearish movement is likely once this pullback has completed.



(Bitstamp:BTCUSD 4h)

On the 4 hour chart there are no particular signs of divergence, showing strength in the dip. A test of the 50% support seems likely once the pullback has completed. Past there, there is good support above the historical $7888 level, which could provide a bottom for this movement.

Generally, a strong drop with a sharper retracement is a much more bullish sign than a shallow dip, as it gives the market an opportunity to consolidate ready for a new bull run. A retest and rejection of the levels closer to the $6k bounce would be a very healthy sign.

On the other hand, if we view this as part of longer term bear market, then we would consider the last few weeks to be a pullback ready for a break to new lows below $6k. The market reaction to lower support levels with be the deciding factor between a continued bear market or a new bull run. Personally, I would wait for a strong bounce before taking any long positions or a high volume break below $6k if you are looking to short.







Ethereum



(Bitstamp:ETHUSD 1h)

Ethereum has seen a strong bounce above the macro 61.8% support after its double bullish divergence. It's so far tested the 50% retracement of the last leg down. In isolation, this is a bullish sign for Ethereum in the medium term, but in the short term bearish context of Bitcoin, we could easily see further drops. A decoupling from Bitcoin's dip would be a hugely bullish outcome for Ethereum, but is unlikely.



(Bitstamp:ETHBTC 1h)

On the ratio, Ethereum saw a good break above the 0.08145 resistance and appears to be finding support above the resistance of the ascending channel it would've otherwise stayed in. Given that ETHUSD is looking much more bullish than BTCUSD, we could see some good gains on the ratio over the next week or two.

My strategy generally involved buying during a flat consolidation or near the end of a bullish continuation pattern, so I shall stay out of ETHBTC until I see an appropriate opportunity. But this will likely provide some good bullish opportunities for those with a strategy suited to capturing it.







Bitcoin Cash



(Poloniex:BCHBTC 2h)

Bitcoin Cash saw a similar spike to ETHBTC after its own bullish divergence. We're still in a very uncertain area, as we could easily drop through support given another sharp drop on Bitcoin. However, if we can prove a good support level over the next few days/ weeks, then BCH may finally find a bottom to its 2 month correction.







NEO



(Binance:NEOBTC 2h)

Neo saw a small break upwards through the descending resistance. But, with no volume spike, the movement didn't go far. I've replaced the ascending support (from my last post) with an ascending channel. With such low volume, this is generally a bearish continuation pattern. However, volume has been generally low for the last few weeks, which weakens that suggestion.

I would wait for a high volume breakout from the channel or a rejected second test around the 0.01088 support as confirmation before taking on any long positions here. Otherwise, this is still relatively bearish.







Litecoin



(Poloniex:LTCBTC 1h)

Similar to the 20th, Litecoin has seen another fake-out below support and rebound. However, this one saw no volume spike and a has yet to rise as far. Unless the volume can pick up significantly and break the 61.8% resistance level, it looks pretty weak. If it does manage to continue upwards, I would still advise waiting for a small consolidation zone to buy on, as it provides a defined risk level to work with.







Monero



(Poloniex:XMRBTC 1h)

Monero is still looking for a good support level in its pullback. Volume and volatility remain high, so we cannot form a proper consolidation yet. Hopefully over the next few days a support level will be established, until then there is little to comment on related to the next bullish leg.







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.