Bitcoin price has risen by over $ 4,800 in recent days, almost 13 per cent. This increase, however, stopped near the nearest possible resistance of $ 42,300, where a pro-bearish engulfing pattern was formed last weekend, signalling a potential rejection of this zone.
If this happens, over the next few days, we could expect further declines, as a result of which the BTC rate may return to the area of the upward trend line, which is the lower boundary of the correct triangle formation.
Although there are many indications of declines, it is worth noting that their potential range is quite limited. The upward trend line inevitably approaches the currently tested resistance of $ 42,300. It also means that the slower the future declines will be, the smaller their range will probably be.
The current situation on the Ethereum quotes is also very interesting. The exchange rate of this cryptocurrency has recently increased by almost $ 500, which was nearly 20%.
This increase meant that the ETH rate beat the top of an isosceles triangle. However, the subsequent increases did not last too long, as there was a considerable supply response already around $ 3,000.
Although this reaction may signal a downside potential, its scope seems to be very limited. It is worth noting that the nearest support is located in the vicinity of $ 2,800. It is also worth noting that this zone corresponds to 38.2 % Fibonacci retracement from an earlier upward move.
Therefore, there are many indications that the ETH price may move in a horizontal trend between $ 2,800 and $ 3,000. Only the direction of a permanent break from this consolidation will determine the movement’s future direction on the Ethereum quotations.
Looking at the bitcoin cash quotations, we notice that the price of this cryptocurrency has been moving in a horizontal trend between $ 270 and $ 350 for two months now. Given the upward trend going on for a few days, as long as this trend continues, the BCH price could return to the upper limit of the formation, i.e. $ 350.
It should be emphasized, however, that the BCH exchange rate is still in a downward trend, and the current horizontal pattern is statistically treated as a correction, which means that the market is more likely to break out of these types of systems in the direction consistent with the previous move.
Therefore, taking into account that in this particular case, the earlier impulse was a downward move, there is a high probability that even if the BCH price reaches $ 350, a more significant supply response will appear at this point, which could initiate another wave of declines, for which the potential range seems to be at least around $ 270.
We could also expect potential declines on the Binance Coin quotes. The BNB exchange rate has recently increased by over 13%, thus returning to the area of the downward trend line, which is the upper boundary of the right triangle.
In the vicinity of this resistance, a considerable supply reaction appeared already on Sunday. Thus, if this zone is permanently rejected, the BNB rate could return to the downward path, thus sliding back to the $ 355 region. This is where the horizontal support that forms the lower boundary of the triangle lies.