The Coronavirus pandemic is causing unprecedented turmoil in world markets. While stocks, oil, and other “prosperity” assets seem doomed, there may still be a light at the end of the tunnel for cryptocurrencies. So far, Bitcoin, Ethereum, and Ripple have suffered losses that cut their prices in half. What will happen next?. Read the technical analysis provided by the SimpleFX people.
SimpleFX analysis for top crypto
Bitcoin at the crossroads
The current structure of BTCUSD shows us that a significant and long-term downtrend is forming, as shown by the yellow channel lines. After the market reached the top line of this channel, we saw a rebound and a rapid decline in the direction of the bottom wall of this channel.
Chances are, right now, the bears are heading to the $ 3,258.65 support level, which is on the line indicated above.
Since the market was moving downward very quickly, the $ 3,258.65 level may be reached in the coming days. Then, if the bears fail to break below this support, we can see a gradual rise in price in the direction of the upper yellow channel line and the resistance level of $ 9,220.41.
Please note that the yellow channel formation lines are downward sloping, so if we see an uptrend after the $ 3,258.65 bounce, the market will move forward slowly as the bulls will need to overcome the resistance of the descending channel.
In the event of a break below the $ 3,258.65 level, the decline will continue even lower, but at the moment, it’s not very easy to say to what extent the bears will push the price down.
SimpleFX: Ethereum can go both ways
With regard to ETHUSD the situation is similar to that of BTCUSD. For a long time, the bulls pushed the price in an upward direction, gradually approaching the upper line of the yellow channel. Then, after a double bounce from the upper yellow wall, the market started to drop rapidly and sharply.
Chances are the market is now dominated by bears, and they won’t give up until the bottom wall of the yellow channel, and the target support level of $ 39,032 is reached.
When this level is reached, the market could expect a new wave of growth at the upper yellow line and the resistance level of $ 256,958. It should be noted that, as for BTCUSD, possible growth will occur against the slope of the descending channel, so this path will not be easy for bulls, respectively, we could expect a slow and unhurried rise.
However, in the event of a break below the $ 39,032 support level, the ascending scenario will be canceled or postponed to a later date. So let’s watch how the market will behave near the bottom line.
If the price falls below $ 39,032, the market will continue to decline, but it is difficult to say where the bearish target can be located.
Ripple shows signs of independence
The situation for XRPUSD seems the most harmonious among other cryptocurrency pairs. We saw the market hit the bottom yellow wall, which is the support line for the price, after which the price moved first in a lateral direction and then up. Then the upper yellow line was reached, from which the market pushed and fell.
XRPUSD has formed a fast and powerful downtrend. Most likely, we will now see a decrease in the $ 0.079 area, i.e. on the support line. After the bears reach the specified level, we could expect a new wave of growth in the upper yellow line.
However, as with other major cryptocurrencies, this rise will come against the tilt of the yellow channel for the uptrend to continue.
If the bears manage to break below the $ 0.0799 support, the decline will continue in the future, but it is not yet possible to build a new descending channel to determine the target zone that the market can reach.
In this regard, we must wait for the price to reach the $ 0.0799 level and see if we see a rebound or the decline will continue.
Adding this pair to our cryptocurrency watchlist is preferable!