Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, IOTA: Price Analysis, September 17

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The market data is provided by the HitBTC exchange.

Mt.Gox, the bankrupt Bitcoin exchange that collapsed in 2014, is soon expected to distribute $1 billion worth of cryptocurrencies to thousands of its creditors. As it has been a long wait, some might offload their bitcoins as soon as they receive them. Can this produce the next leg of the downward move?

When the trade volumes are high, even such a large supply can only result in a knee-jerk reaction, because the buyers lap up the excess supply. However, the picture changes when the volume is low.

If the bulls anticipate a large supply, they might hold off their purchases expecting to buy at lower levels. With a lack of buyers prices plunge, panic selling sets in and the bears keep the markets under pressure.

On the other hand, if the recipients hold on to their Bitcoin and sell in a measured manner, the markets can easily absorb small amounts of fresh supply without causing any disruption. It will be interesting to see how the markets respond.

What are the important levels below or above which the trend changes? Let’s check the charts and find out.

BTC/USD

The pullback from close to $6,075 stalled at the 20-day EMA, inviting fresh selling by the bears. Both negative formations – a head and shoulders and a descending triangle – will complete if Bitcoin breaks and closes below $5,900.  

Though the pattern targets of such a breakdown are way lower, we anticipate support at $5,450 and $5,000.

BTC/USD

If the bulls defend the $5,900–$6,075.04 support zone, the BTC/USD pair will again attempt to rebound higher. We shall turn positive if the price sustains above $6,600.

Currently, both moving averages are turning down and the RSI is also in a negative territory. This shows that a retest of the support lines is likely.

Considering the bearish patterns, we suggest traders wait for a successful retest of the supports and buy the subsequent pullback attempt. Until then, traders should watch the price action closely from the sidelines.

ETH/USD

The failure of the bulls to break out of the 20-day EMA for the past three days has invited selling. Ethereum has a minor support at $203, below which the slide can extend to $183.17.

ETH/USD

The trend remains bearish, as both moving averages are sloping down and the RSI has turned from the 40 level.

The ETH/USD pair will indicate a change in trend if it sustains above the downtrend line of the descending channel and the 50-day SMA. A few days of range bound action is likely. We shall wait for a new buy setup to develop before suggesting a trade on it.

XRP/USD

Ripple has hardly moved up in the past four days. It continues to trade close to the support at $0.27. This shows that the buyers are in no hurry to get in at the current levels.