Crypto Price Analysis May 6: BTC, ETH, LTC, EOS, BCH

UTC by Dmitriy Gurkovskiy · 7 min read
Photo: QuoteInspector
Photo: QuoteInspector

A senior analyst at RoboForex shares his insights into the future scenarios for Bitcoin, Ethereum, Litecoin, EOS and Bitcoin Cash price movement.

Dmitriy Gurkovskiy, a senior analyst at foreign exchange broker RoboForex, provides his vision of the possible tendencies in price changes for Bitcoin as well as for other major cryptos.

The cryptocurrency market continues moving upwards lead by Bitcoin and Ethereum. For the major digital asset, the first upside target is at $10,500, where the price may start a new correction to reach $6,500 and then resume growing inside a reversal pattern. If bulls succeed to push the price from the current level towards $11,500 and break it, they may resume a strong rising tendency and start forming a large Triangle pattern, which can be seen in the weekly chart of BTCUSD. If the asset breaks this pattern upwards, it may continue growing and easily return to its previous highs. In the existing market situation, Litecoin, Bitcoin Cash, and EOS are looking rather weak but they may resume trading upwards after breaking their closest resistance levels.

Bitcoin

In the weekly chart, BTC/USD is still moving inside the Triangle pattern. After breaking the pattern’s upside border and fixing above $12,000, the asset may continue its aggressive growth and complete the pattern. However, one shouldn’t exclude a possibility that the pair may correct downwards and test $6,475. Not far from this level, the price is expected to complete an Inverted Head & Shoulders pattern, thus forcing a strong rebound to the upside. Still, the bullish scenario may no longer be valid if the instrument falls and breaks $3,720. In this case, the asset may break the Triangle’s downside border and continue the correction.

Photo: Roboforex / TradingView

As we can see in the H4 chart, Bitcoin has stuck inside the Triangle pattern again. The key short-term trading idea implies that the asset may break the pattern to the upside and then continue trading upwards with the first target at $10,515. To confirm this idea, the price must break the resistance level and fix above $9,565. A strong signal in favor of this scenario will be a rebound from the ascending trendline at the RSI. However, this scenario may be canceled if the instrument breaks the pattern’s downside border and fixes below $8,405. In this case, the asset may continue falling to reach $7,495.

Photo: Roboforex / TradingView

Ethereum

As we can see in the daily chart, Ethereum continues growing and forming a bullish impulse. In addition to that, the price is breaking the upside border of the Bollinger Bands indicator, which also means a bullish pressure. The upside target may be the descending channel’s upside border at $260. Another signal in favor of this scenario will be a rebound from the support line at the RSI. However, the bullish scenario may no longer be valid if the pair breaks the rising channel’s downside border and fixes below $185. In this case, the instrument may continue falling to reach $147.

Photo: Roboforex / TradingView

On shorter timeframes, the pair is correcting within the rising channel. One shouldn’t exclude a possibility of a test of the channel’s downside border at $195 and further growth. The closest upside target will be at $230. A strong signal to confirm this scenario will be a rebound from the trendline at the RSI. However, this scenario may be canceled if the asset breaks the channel’s downside border and fixes below $190. In this case, the instrument may continue falling towards $175.

Photo: Roboforex / TradingView

Litecoin

As we can see, LTC/USD is still testing a very important resistance area. If bulls fail to fix the price above $50, there will be higher risks of a new decline. The above-mentioned level must be broken if bulls want to continue pushing the asset towards $65 and $82. A signal to confirm the bullish scenario will be a test of the support lien at the RSI. However, this scenario may no longer be valid if the instrument falls and fixes below $38. In this case, the pair may continue falling to reach the channel’s downside border at $20.

Photo: Roboforex / TradingView

In the H4 chart, Litecoin is correcting within the rising channel and may yet resume trading upwards to reach $50 and $54. A strong signal in favor of this idea will be another rebound from the trendline at the RSI. However, the bullish scenario may be canceled if the pair breaks the downside border and fixes below $44. In this case, the asset may switch to the bearish scenario from the daily chart and fall towards $20.

Photo: Roboforex / TradingView

EOS

As we can see, EOS continues moving inside the Ichimoku Kinko Hyo Cloud. However, there are risks of further decline as long as the asset is moving below the cloud’ s upside border and $3.20. A signal in favor of this idea is a breakout of the ascending trendline at the RSI. To confirm the bearish scenario, the price must break the cloud’s downside border and fix below $2.27, thus indicating a breakout of the channel to the downside and further decline towards $1.28. still, this scenario may no longer be valid if the instrument breaks the cloud’s upside border. In this case, the asset may continue growing to reach $3.82 and then $4.50.

Photo: Roboforex / TradingView

On shorter timeframes, the asset is correction towards the rising channel’s downside border. Possibly, the pair may test $2.58 and then resume trading upwards with the target at $3.20. An additional signal to confirm this idea is a rebound from the support lien at the RSI. However, the bullish scenario may be canceled if the price breaks the channel’s downside border and fixes below $2.55. in this case, the asset may switch to the bearish scenario from the daily chart and start plunging.

Photo: Roboforex / TradingView

Bitcoin Cash

In the daily chart, Bitcoin Cash is testing the upside border of the Bollinger Bands indicator for the second time. in addition to that, the asset is breaking the descending channel’s upside border. There is a potential for further growth towards $365. Another signal in favor of this movement is a rebound from the support line at the RSI. To confirm this scenario, the price must break the resistance area and fix above $285. However, this scenario may no longer be valid if the pair falls and fixes below $202. In this case, the instrument may continue trading downwards to reach $135 and then $85.

Photo: Roboforex / TradingView

As we can see in the H4 chart, the asset has failed to complete a Head & Shoulders reversal pattern, and right now is forming a Triangle pattern instead. After breaking the pattern’s upside border and fixing above $280, the pair is expected to continue growing with the target at $318. An excellent signal in favor of this idea is a rebound from the support line at the RSI. We can see that the previous test of this line also resulted in strong growth. However, the bullish scenario and the Triangle pattern may be canceled if the instrument falls to break the pattern’s downside border and fixes below $220. In this case, the asset is expected to resume falling with the first target at $136.

Photo: Roboforex / TradingView

Disclaimer: Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

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Dmitriy Gurkovskiy
Author: Dmitriy Gurkovskiy

Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.

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