Bitcoin’s quotations have been relatively stable for several days. It also translates naturally into the stagnation perceived in the quotes of most altcoins. However, this tendency cannot last forever, so it might seem that we are getting closer to a more significant breakout.
Looking at the BTC quotes, we notice that the exchange rate of the oldest cryptocurrency has remained in a horizontal trend since the second half of June, the upper limit of which sets a resistance of $ 36,400. This level coincides with the measurement of 61.8% — Fibonacci correction, which means that so far, there has usually been a supply reaction there.
It is worth noting that consolidations are corrective formations. It means that statistically, the market breaks out of them according to the earlier impulse. Considering that the earlier impulse was downward in this particular case, one cannot rule out a scenario in which the BTC price will drop to around $ 30,000. It’s where the closest, significant level of support is located.
Looking at the ETH quotes, we notice that the cryptocurrency’s rate broke from the recent upside-down wedge in line with last week’s projection. Subsequent declines stopped in the technical support area of $ 2040, where there was a demand response a few days ago. Since then, the market has been moving in a horizontal trend; the upper bound is a local resistance of $ 2,190 and measures 38.2% — Fibonacci correction from an earlier downward impulse.
If this consolidation turns out to be a form of correction and the market breaks down from it, then the price of ETH could plunge back even to around $ 1,750.
The BCH has also remained in the horizontal trend for a long time. In this case, the top of the pattern is a $ 540 resistance. Its lower limit, in turn, is set by the support of $ 430.
Considering that the consolidations are corrective patterns and taking into account that the previous impulse was downward, from a purely technical point of view. Such a scenario cannot be ruled out in which BCH quotes will drop to or even below $ 430.
The current situation on the XRP quotes is also very similar, the rate of which has been in the range between $ 0.54 and $ 0.75 for a long time. Given that this pattern resembles a correction after an earlier downward move, it is more and more likely that XRP may soon slide back to the lower bound of this pattern. Breaking it from the bottom would open the way to further declines, even to around $ 0.37.