The major cryptocurrencies have been trading sideways and are attempting to find a bottom after retracing nearly all the gains generated beginning in December of 2017. Major cryptos such as Bitcoin and Ethereum have been unable to breakout of their current ranges, and their current technical patterns show that there is lots of resistance above.
BTC/USD Daily Chart Technical Analysis
View – Bitcoin is attempting to form a bottom, as it trades sideways following a retracement from its highs made in December. Prices are currently forming a bear flag pattern which is a continuation pattern where Bitcoin pauses and then refreshes lower. Prices are creeping close to an upward sloping trend line that connect the low in February to the lows in March and comes in near 8,720. A break of trend line support would lead to a test of the February lows at 5,920.
Resistance is seen near the 10-day and 50-day moving average at 10,000. The 10-day moving average has crossed below the 50-day moving average which means that a short-term down trend is in place. With the fast-stochastic edging higher from oversold territory (below the 20 level), prices could rebound from trend line support.
Up-side Target: 10,000
Down-side Target: 8,720
ETH/EUR Daily Chart Technical Analysis
View – Ethereum versus the Euro is trading sideways and attempting to form a bottom near support which is an upward sloping trend line that connects the low sin February to the lows in March and comes in near 540. This coincides with the Bollinger band low which is 2-standard deviations below the 20-day moving average. A break of trend line support would lead to a test of the February lows at 451.
The consolidation that Ethereum is experiencing is forming a bear flag pattern which is a pause that refreshes lower. Critical resistance coincides with the late February lows (blue dashed trend line), and the 20-day moving average at 650.
Up-side Target: 650
Down-side Target: 451