TOP 3 - BitcoinCash, Bitcoin & Ethereum: Fast Short Term Analysis
|- BCH/USD starts the week with gains over 18% and reaches $1400
- BTC/USD reaches the $9000 after a big-gains week across the Crypto board
The Crypto industry is enjoying some tailwinds this week. After seeing big surges in Bitcoin, Ripple, Ethereum and others, the spotlight is on BitcoinCash today, with a strong 18% surge that has now brought BCH up to $1400.
The main Cryptocurrencies have reached important resistance levels, with some selling interest showing, most likely due to the need to consolidate gains and vertigo that might suffer the traders waiting to get into the market but fearing to be the last ones to buy before a correction.
A wait-and-see approach is recommended right now, as a healthy retracement could offer better entry points.
BCH/USD 4H chart
Strong gains during the Asian session for BCH/USD that show continuity in the European opening. After a couple of difficult sessions looking to consolidate the levels reached during last week, BitcoinCash is now showing strength and breaks higher with a clear target at $1540, a level where it stopped its surge last February.
An extension up to the next resistance level at $1540 is likely. If that one is broken, there is some room until $1780. Below, there's an important support in the $1300, vital to avoid getting back into the complex $1100-$1200 area.
MACD in the BitcoinCash 4H chart has broken the horizontality and is extending the bullish movement with a nice angle and opening. The indicator is already located in notably extreme levels so any surge should be observed with caution.
Directional Movement Index in the same chart shows a pattern where the buying forces have been losing steam while sellers that went for retracements at the $1100 are still loyal to their positions. If BCH/USD keeps moving higher, it could trigger a close of selling positions.
ETH/USD 4H chart
Ethereum is drawing a very interesting formation in the month of April, with a very decisive movement that has allowed ETH to double its value. Backed by the positive tone in the Crypto sector and by the recent news of upcoming developments, Ethereum has traded up to just $40 below the ceiling of the major bearish channel. The way it solves the current technical picture will be a testament to what kind of status ETH is in at this point.
On the upside, we find a major resistance at $675, a meaningful level both in terms of price action and trend. Chances are that strong selling interest will be found at that level, given the previous rises and the need to consolidate profits. Below, $620 as primary support, followed by $575.
MACD in the Ethereum 4H chart shows a divergent profile, so caution is recommended before taking more positions. Possible extension upwards, up to the aforementioned $675 level.
Directional Movement Index in the same chart shows an increase in the selling interest from the $575 level, so in case retracements appear, they wouldn't relieve the selling pressure, at least until those levels. Buyers have been diminishing in the last bullish leg, reinforcing the profit-taking scenario. ADX is confirming the loss of strength during the last hours.
BTC/USD 4H chart
BTC/USD has met the $9000 level in the last hours, after enjoying important gains during last week. Technically, the bullish movement is showing some pause signals and that could be a good level to consolidate gains. Above there, the $9500 level is the first resistance, followed by the $10000 meaningful level. Below, a weak support level at $8600 and a bit below, at $8400, an important support that has been visited many times during the last two months.
MACD in the Bitcoin 4H chart also shows a divergent profile that, even if it doesn't discard terminal moves on the upside, at least indicates the need of a rest in the current bullish price action.
Directional Movement Index in the same chart shows the same surge in the sellers' levels during the last bullish leg, while buyers have decreased. This supports a consolidation scenario.
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