Bitcoin has broken down from the channel pattern it was following for the past few days. It tested our support level of $34K, briefly finding support there before breaking down further. It appears to now be finding support at $30K. This level is likely to hold and we should see a bounce soon. If not, the lower anchor of our Fibonacci levels at $28.5K will provide resistance. The Kovach OBV has remained resilient throughout Bitcoin's vagaries, but has taken a dip recently confirming the bear momentum. Both Kovach momentum indicators are bearish at this point. This suggests that soon the pendulum will swing back to bull mode.
Ethereum broke our trend line and is testing lower levels. We have drawn some new Fibonacci levels to anticipate support. Eth is currently sitting at support around 1233, a Fibonacci level. It is reasonable that it should retrace to the 50% Fib level at 1172. We should find support there. Otherwise, we have some nested fibonacci levels around 1111, and 1035. The Kovach OBV has turned sharply, registering the selling pressure. Be mindful of jumping into a trade here, as the bear momentum may not be over.
We are seeing a bull channel breakdown in Litecoin. These typically retrace 50% of the channel height at least, and we are already testing the 0.382 Fibonacci level. If it continues to dip watch 124 and 111 for support. The Kovach OBV has been pretty flat lately, which does not bode well for LTC. Litecoin is still a great project so use lower levels as a buying opportunity, just understand that we may not be out of the woods yet.
