Price Analysis for 05.05.2017: BTC, ETH, ETC, LTC
See the price analysis of Bitcoin, Ethereum, Litecoin and Ethereum Classic
Bulls rejoice. Last week, the whole cryptocurrencies market was growing and BTC was no exception.
Last support zone has shown themselves well.
Therefore, you might want to follow the same strategy on the current market. If you are out of the market now or have already taken a profit and waiting for new entry points, take your time and wait for the formation of support zones. This works very well on the trend market.
There is little sense to watch high time frames on the current situation – we might see just an incredible fly to the moon. To understand the situation, you need to look at the graphs a little closer. Let us consider a four hour time frame.
Clear lines of support and resistance have not yet been formed because of unrestrained growth. However, I think it's worth paying attention to two zones that can potentially become support ones for a rollback.
The price was delayed at $1,477. There is a high chance that the support zone will be there. If a rollback took place, and the bulls would begin to buy from this level, it is most likely this is the zone of support. You might want an order, with a short stop, and consider entering the trade.
$1,327 is another level that can become a support zone. It's lower because after such an increase, a serious correction may happen.
Despite the seeming simplicity, be careful. There are no clear signals. All support lines are potential. Wait for clear indicators, with retests, only in that case, your trades might be successful. Don’t forget to put your stop loss orders.
The situation with ETH is slightly more interesting than with the BTC.
Despite the same uptrend, we see that there are zones where the bears try to impose a fight.
We see the support zone in the area of $72.5. However, be careful - the growth is so large that the zone of support may easily be at $80.3.
Potential zones that you might pay attention to are on the graph.
How will the price change further? Will see. Where to buy / sell in order to have a mathematical advantage? Key/local zones.
These are the main rules of technical analysis. Therefore, you might want to expect a correction, wait for retests, and consider buying at a good price.
Since there are not clear situations everywhere, I would like to choose an asset where the occasion is more clear. This is ETC.
On the good news, supported by the overall growth of the market, in addition, ETC has shown surprising results.
The last few days the price is traded on the channel $6.3 to $7.3.
I think it's worth paying attention to two entry points, and two developments of affairs that will suit us as traders.
- Trades from $6.3. I think this zone is strong enough to make purchases from there. Only in this case you must follow the market as a whole - the better the overall trend is, the more likely you will close the deal with a plus. If you buy from $6.3, I think the target of $7.1 will be a good deal.
- Breaking through the resistance zone and buying from $7.5. In this case, it is worth waiting for a retest, just buying a candle breakout is too risky.
- If the price continues to be traded sluggishly between current zones, without touching the support / resistance zones - stay out of the market.
Many traders may object - how not to sell? It may be seen that the price is in the channel, and there was a pullback. The answer is to make deals only according to the trend. This will give you an additional benefit in order each of your trades to be the most profitable at a distance.
News about Segregated Witness and main uptrend of the crypto market are pushing LTC up.
The last resistance level was at about $16, left far behind. This level may not be actual in forthcoming weeks if there’s no bad news.
At the moment, except local uptrend, it is hard to see the support and resistance levels. These levels are very important.
Since there are no exact levels, we can highlight key zones, which have good chance to become the levels of support/resistance:
- $29. Pay attention for this level. Perhaps here we might see the key events happening. The price has been in this zone a couple of times and rebounded. If it consolidates in the resistance zone, it will be a signal for the bulls and we perhaps will see new heights.
- $22. This level might also be important. Because of high volatility - creation of a channel between $22 and $29 - possible scenario for next weeks.
We recommend paying attention for the news feed. It is game-changing. And don’t forget to look at the trade volumes, in some cases, it is very important.