The situation in the cryptocurrency market since the middle of May poses more and more questions before investors regarding further prospects. The two traditional camps of "buyers" and "sellers" bicker in disputes over what will happen in the coming weeks and months to the prices of Bitcoin, Ether, Litecoin, and other altcoins that are very sensitive to any changes on the market. If in December 2017, and at the very beginning of this year, the market paradigm was built on Bitcoin growth and sales of other cryptocurrencies, in recent months everything has returned to "default settings.” And now, any negative news for the whole market leads to the collapse of Bitcoin and other assets. But there are also growth leaders in the form of protective coins. Let us understand everything in more detail.
Bitcoin: An Endless Tale of Falls
The beginning of this week can be safely called "the end game for hopes of growth." Buyers of Bitcoin had a chance for confident growth last week, and on condition of overcoming the significant resistance level at $7,800, one could count on the continuation of growth. But this barrier was too strong this time. The victory of the sellers of Bitcoin became convincing enough that within a few hours, the lower limit of the "Parallel Channel" technical pattern was broken. The collapse that took place throughout the few Russian festive days occurred before the support at $6,555. But even this support could not hold, and at the time of writing, the April 1st low was updated to $6,442. Even if we expect a short-term retest of $6,555, the main scenario assumes maintenance of the downward movement within the coming weeks, and the potential target is the region of the current year's low of the downward reversal in February at $5,882 to $6,000.
Under the condition of maintaining momentum, the "bears" can push the rate even lower to $5,280 (23.6% Fibonacci correction line from the maximum value in December). Of course, these reductions are connected with rumors of hacker attacks on exchanges, or the SEC investigations initiated against them. These are catalysts for a short-term decline, but they do not determine the future movement. By June or July, the market will receive new, clearer signals, and an increasing trend will start. The goals that crypto experts have talked about for so long in the form of values of $15,000 and $25,000 can still be achieved in 2018. Among the experts is US citizen John McAfee, who is already hinting at presidential ambitions.
Ethereum: A Rebound to $600 Was Just the Beginning
A very similar picture to that of Bitcoin was formed in the case with Ethereum. Its rates made an attempt to overcome the $600 mark, but a breakthrough from its price channel led to a collapse to $500. And this level could not hold, which leads to the preservation of declining tendency to the low values of April in the $360 to $415 range. If these levels cannot contain the profit-oriented "sellers,” then the target will be the range of $306.85, which is a 23.6% correction on the Fibonacci lines.
The above goals are expectations for the next 1 to 2 weeks. But one can expect a price turn when giving forecasts for a longer period until the end of July. Yes, it is true, the main scenario of further dynamics signals the continuation of a collapse, although it is already possible to start looking for signs of a reversal in the closes of day and week candles. Fans of the Elliott Wave Theory recognize the current 5th wave decline and can prepare for an upward correction in the coming weeks, and their colleagues will call this movement "bear luring.” Levels of $875 and $1,000 are the targets for the forecast until the end of summer and the beginning of fall.
Binance Coin: The Growth Leader in June Amidst the Disaster
One of the coins showing profitable prospects apart from lateral movements yet again during the total crash on the crypto market is the Binance Coin. As such, we are granting it the "The best coin of June 2018" award. By June 1st, its rate had risen by 27%, although other altcoins and BTC are showing a steady decline over this period. And it seems that this is not the end yet as we await more dramatic movements and, possibly, a rise to 0.002462 (38.2% expansion level along the Fibonacci lines) paired with Bitcoin. On the contrary, the maintenance of the momentum on the collapse of other coins will increase the demand for Binance Coin to 0.0026 or 0.002682.