After months of price doldrums across the cryptocurrency industry, there was some upward movement in BTC and ETH last week after the SEC declared that both of them would not be legally classified as securities.
Even if you’re a die-hard altcoin trader who wants nothing to do with Bitcoin, movements in major cryptocurrencies are often felt throughout the entire cryptocurrency market. Money gained in Bitcoin is often money gained in (for example) IOTA, though the shockwaves may not be reflected until a few hours or a few days later.
Let’s take a look at the price movements of some of the largest cryptocurrencies to inform your trading this week.
Over the last week, there was a relatively good rise above the $6,130 price level of bitcoin against the US dollar. At one point during the week, BTC/USD pairs were traded over the $6,500 and $6,600 resistance levels. With that being said, Bitcoin sellers were able to defend the $6,700 resistance levels.
Because of this, a negative reaction occurred and the price fell under the $6,660 pivot level. This also resulted in the Fib retracement level falling below 50 percent in the last wave from the low of $6,122 to the high of $6,731.
At a few points, the price level even fell below $6,500 in conjunction with the 100 hourly simple moving average. However, the price level was able to cling onto the 61.8 percent Fib retracement level of the last wave.
This week’s lowest lows reached support levels around $6,325 and $6,230. If the price remains above the latter, there may be potential for it to rise.
How to Prepare for CySEC’s New Tiered LeverageGo to article >>
On a more positive note, a trend line formed with resistance at $6,500 as seen on the BTC/USD pair on their hourly charts.
Bitcoin Cash saw a recovery of sorts, starting the week from the low of $799 against the USD and then rising over the $840 and $850 resistance levels in a steady recovery. Before sellers appeared, there were even trades above the $900 level.
A bearish reaction came about as there was no close over the $900 resistance. This saw the price of BCH fall rapidly and fall below the $850 support area.
There was a notable downward move which saw the price closing under the $840 level with the 100 hourly simple moving average. The price currently holds an important support level at $825, coinciding with the 76.4% Fib replacement level of the last wave.
In short, the low remains at $799 while the high rings in at $910. If a downside break under $825 were to occur, the price levels would be faced with vast amounts of pressure.
Over the previous week, an upside recovery over the $95 price level of Litecoin against the US Dollar occurred. At certain points, the LTC/USD trading pair even traded a few points over the $100 price level prior to sellers appearing.
The price of the coin failed to settle over the $100 level which resulted in a downside reaction, causing the price to decline and fall below the $100 and $98 support levels. A break below the 50 percent retracement levels also occurred, from the $88.76 low to $102.91 highs.