Chinese ICO ban was this week’s hot topic. The news hit the market and it instantly reacted. Bitcoin looked stronger than the rest of the market but was going down as well.
The $4400 support level was easily hit, even though it used to be a key level in August.
Since the downfall was caused by the big news, the resistance zones did not work out. As a result, a local $4400 support zone has been formed.
Following the news, BTC hit a strong uptrend line. A strong downtrend formation could have started, but the price has recovered really fast. It’s a rather bullish sign.
The major news flow is expected later this year in November.
$5000 high test. BTC will probably test high if the rest of the market will show strong growth. For now, no strong triggers that could cause movement.
In case of the market being stable, $4400 level can show its strength. During possible slight corrections watch for volumes around the $4400 zone. This level has been rather strong in August, so it’s possible that buyers’ consolidation will happen there.
$4000 test. Round levels are traditionally very strong. $4000 level is no exception. If the general market correction happens, then this level will become a key one for a second time in a row.
Generally, after the previous strong movements $5000->$4000->$4500 there will be a volatility decrease in BTC and next week will be rather calm.
If Bitcoin was slightly influenced by the ICO ban in China, the news has impacted ETH directly. Just in a few hours the price dropped from $375 to $280. Very strong downfall stopped at $280 resistance zone, that had been in place since the beginning of August.
Generally, the news from China has been overvalued by the market. The same as in the SEC case, the recovery has been quite fast.
Current situation and scenarios:
$280 support zones have remained. If there’s more negative news, this level is the most important.
In September, many new ETH announcements are expected. The closer the Metropolis release, the more news buzz we’ll see.
There’s global $395 resistance zone and $395 high tests look very logical.
The volume of transactions and number of ICOs continues to grow.
The current situation in ETH is fine, a strong downfall has been bought out and movement towards $395 goal has continued. The market is growing easily, as there is no strong resistance from sellers.
If nothing out of the ordinary happens, we will see $395 tests closer to the middle of the month.
LTC has been making investors happy in the latest days. Strong basis and literate PR from the project leader has led to a strong movement in LTC and new historic maximum.
The historical maximum above $90 has formed. This zone is resistance right now.
News feed, heated by Charlie Li, is very strong.
LTC is one of the leaders in trading volumes over the last couple of days. Mortgage rates are at a very high level.
LTC also fell down a bit following Chinese news, but right now it is a recovery leader.
LTC shows really bullish moods, because of the Lightning Network news. In case of full-blown LN implementation, the strong price rally will follow. This news attracts many long term investors.
If we talk about the next week, the most likely turn of events is high tests. The closest resistance is around $90 zone. If there is no negative, maximums tests are very likely.
If there is not enough buyers to make a full blown test, then volatility decrease and consolidation is possible.
Traders should watch for volumes and control the risks.
Source : cointelegraph.com