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Correction to Continue Says This Week’s Technical Analysis

Needless to say, all statements and views expressed below and any forecasts contained herein are solely based on the author’s particular opinion.

While the market was closed on Christmas and New Year, the crypto market was also quite flat. The most important point, however, is that after correction the price did not make new lows, which means that the correctional phase is still here to stay.

Some cryptos have even made new local highs, while others are just slowing down, perhaps to catch up a bit later. In the long term, therefore, the market is going to continue correcting upwards.

Bitcoin

On H4, BTC is slightly going up after a long period of testing the correction channel support. The price has already left the consolidation triangle, which means the further rise is quite likely.

The current major support is at $3,930. The MACD lines are moving towards the positive territory, also confirming the rise. The targets are most likely to be at 38.2% ($4,428), 50.0% ($4,832), and 61.8% ($5,236.50) Fibo.

On H1 the triangle is also over, while the market slowed somewhat down to correct a bit in the short term. The correction is confirmed with the Stochastic diverging and leaving the overbought territory.

Once a golden cross is formed, the price is likely to bounce off the short term support to end this pullback. The upward impulse target is meanwhile at $4,200.

EOS

EOS is testing the correction channel support on H4, with the overall price movement being steady. The MACD in the positives shows that the midterm trend is most likely ascending.

The price may reach 50.00% Fibo, or $3.69, which is near the current channel resistance. The support is at $2.76, and in case it gets broken out, the price may well head to $1.99.

On H1, EOS is flat, but with the overall trend being ascending, the upper boundary at $3.01 may well get broken out soon; the price may then head to $3.36. The local support is meanwhile at $2.76.

Ether

On H4, Ether made some new highs, and the MACD diverged. This, however, signaled a short term pullback, which may reach the support at $143.87. Another support, the major one, is at $135.29.

Once the price bounces, the price may rise to 61.80% and 76.00% Fibo, or $168.73 and $188.85, respectively.

On H1, a flag pattern has been formed, while the Stochastic formed a golden cross and left the oversold territory.

This may signal a rise with the target at the flag’s resistance at $158.00. In case it gets broken out, the price may then head to the midterm target at $168.73. 

Litecoin

On H4, the correctional trend went above the latest high and reached 50.00% Fibo. The MACD is meanwhile diverging, which means the uptrend is probably fading out.

The price may still, however, reach 61.80% Fibo, or $43.30, but if this is the case, it is likely then to bounce back to the support at $35.27, and then to $26.65. Currently, the support is at $33.30.

On H1, the LTC is starting to correct after the Stochastic has diverged and formed a black cross. The price has broken out the previous upward channel support, the target being $36.80. 

XRP

On H4, XRP is consolidating within a triangle below the ascending channel support. The MACD is forming a golden cross, which may signal a rise, with the targets at 38.20% and 50.00% Fibo, or $0.471 and $0.531, respectively.

On H1, the triangle may be viewed in detail. If the upper boundary gets broken out, the price may rise to $0.4071, while the lower boundary breakout will send the price to the support at $0.3174. The Stochastic is meanwhile ready to form a golden cross.

What do you think?

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Written by Lewis

Lewis is a freelance journalist, digital nomad, and crypto enthusiast based out of US. As an avid observer of the rapidly evolving blockchain ecosystem he specializes in the FinTech sector, and when not writing explores the technological landscape of US.

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