Consolidation, which began on 5 June, is still ongoing. The first day range was quite narrow, but then the oscillation amplitude has expanded to a four-hour moving average EMA55. For seven days the price is in orange sideways. During this period, strong bearish pressure was absent and BTC/USD recovered to the level of average prices, trying to gain a foothold above him.
EMA55 works as dynamic resistance and each time price reverses down. However, the BTC shows higher lows and is held from a deep pullback to the support 7400.00 USD.
Tonight once again the pair pierced the resistance EMA55 and found a maximum in the region of eight thousand. Whether Bitcoin this time to gain a foothold above the orange range? On the four-hour time frame indicator line Stoch RSI giving weak signal for continuation of growth. On the daily chart the signal to buy is generated at the border of the neutral zone. This is a strong enough signal confirmed by MACD.
Does this mean that the correction for Bitcoin is over, and in the short term we can see the growth? Breakthrough the upper boundary of the orange corridor and re-test the level 8500.00 USD will speak about the early completion of the correction. «Early» completion is considered to be due to the fact that there is no clear third wave decline and the price has not reached the target levels of correction.
If we witness a break of the strong support 7400.00 USD, it means that the correction to the 100% Fibo will continue.
At the four-hour chart Ethereum we can say that the wave structure the correction is completed. ETH price tested the level of 100% Fibo (222.98 USD) and could break the resistance of the four-hour moving average EMA55.
But, until that happens, let’s not make premature conclusions and wait for the break at least above USD 270.00. This is the area of consolidation after the first corrective wave of the decline. If that happens, the bullish run will continue.
And yet there remains the possibility of a rollback to the level of 100% Fibonacci and re-test the psychological bottom of the correction at the level of USD 200.00.
The price of Ripple is held in the orange corridor and cannot break the top line a dashed triangle. Today this is a breakthrough as likely as a decline to support 0.370 USD. Depending on, which will move the market out of the consolidation you can build further predictions for the medium term.
* All prices shown are based on data exchange BitStamp