In today's review, as always, we summarize the results of the outgoing week and analyze the overall price dynamics
BTC/USD
The current week began with growth in the BTC/USD pair, after the yearly minimum was updated last Sunday to 5780.00 USD. On Monday, June 25, the price set a daily maximum at 6365.34 USD. According to the readings of the technical indicator, the price had the potential for further growth and consolidation above the resistance level of 6427.00 USD.
But soon the stochastic formed a signal to decline and it became clear that the price would decline again. The decline took place in three stages. From Monday's high, the price rolled back to the support level of 6090.00 USD, and after completing a short consolidation stage, the yearly high was updated to 5774.72 USD.
In our forecast, we bet on a minimum in the area of 5600.00 USD, however, the dynamic growth of Friday interrupted the fall of the pair and tested the resistance level of 6427.00 USD, which it could not reach at the beginning of the week. Thus, a “double bottom” reversal pattern has formed on the price chart. We have already said that on the weekly time frame the stochastic formed a signal for growth, but in order for the reversal to be confirmed, the price must break through the key resistance level of 6777.00 USD. Yesterday we observed how the price could not consolidate above the resistance level of 6427.16 USD. An additional resistance level in this area was the moving average EMA55.
On the eight-hour chart, the stochastic indicator in the overbought zone formed a signal for an upcoming decline in the pair. We believe that such a decline could bring the price to the area of 6090.00 USD. Using the support of this level, Bitcoin is able to resume attempts to break through the double resistance at 6427.16 USD. It will be more difficult to do this if the price drops even lower, to the support level of 5920.00 USD. Here, the probability of updating the annual lows in the area of 5600.00 USD is much higher than the resumption of growth.
ETH/USD
On Ethereum, the weekly dynamics completely repeated the BTC/USD pair, with the only difference being the annual April minimum ether, which was set at 360.00 USD, has not yet been updated. If the ETH/USD pair breaks out of the consolidation zone limited by the 436 support..00 USD, down, as the stochastic indicator is now preliminary showing, then a re-test of the zero fibonacci level looks much more logical than a break above the 23.6% fib (485.31 USD).
XRP/USD
The weekly low for Ripple was set on Friday, June 29, at 0.424 USD. This is the lowest point on the price chart for the current year. After this, the bullish impulse provoked the pair’s growth towards the resistance of 0.447 USD. But it has not yet been possible to break through it. The oscillator signal in the overbought zone formed a signal to decline, and if the pair’s price does not meet support at the zero Fibonacci level (0.450 USD), then the annual minimum will be updated again, in the area of $0.420 - $0.400.
A situation in which the yearly lows will be updated in the near future may lead to the fact that the reversal pattern is broken, and then we will see further price declines.
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* All price values are based on data from the BitStamp exchange
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Analysis of cryptocurrency pairs BTC/USD, XRP/USD and ETH/USD as of 12/01/2018
Yesterday's price drawdown and consolidation in a narrow range did not completely destroy the chances of recovery, but a break below critical support levels is a cancellation of the correction
