Crypto analysis: Bitcoin nears buying opportunity after a 10% dip, BCH and XMR well supported
- BTC dips 10% in one hour, nearing significant support
- BCH trading inside a bullish triangle, with its base in $2000 mark
- Monero with a similar outlook, but with a cleaner analysis
BTC/USD retraced around 10% in just one hour, showing divergence and clear entry levels
Given the technical outlook described yesterday for Bitcoin, we clearly see the recent fall of the main cryptocurrency as a buying opportunity. The fulgurant BTC retracement has taken the price to the trendline coming from the $5000 mark.
A bearish breakout would dramatically change the scenario, taking Bitcoin price to consistent bearish action in the mid-term. Buying around $12000 should be optimal, but assuming the risk of a potential bearish breakout that would trap bulls, especially given the degree of difficulty to make agile trades in the crypto markets.
BTC/USD 4H chart
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MACD is showing a divergent structure for BTC/USD, with lows reached after a quick move. This kind of speedy action tends to precede other strong movements in the opposite direction.
BitcoinCash with support at $2000
BitcoinCash price is trading inside a consolidation pattern, with support in the forementioned $2000 level. If such a psychological level is not respected, a second buying opportunity might come at $1750, the 61.8% Fibonacci retracement of the previous movement.
BCH/USD Daily chart
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BCH technical outlook
MACD in the BCH/USD daily chart continues to return to the mean after extreme levels witnessed in December. The indicator seems to have formed a "MACD failure" pattern that encourages to look for new positions in the short-term.
Directional Movement Index shows an indecisive structure, with buyers slightly above sellers. Sellers have not been able to overcome buyers in any moment of the current corrective action.
Monero with a similar outlook, but entry levels much clearer
XMR/USD is trading relatively close to highs, but its corrective structure is technically impeccable. The daily chart is showing the $450 level as the signal for more bullish action.
XMR/USD Daily chart
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MACD is still far from its equilibrium level, confirming the bullish bias of the current retracement. Monero seems to be generating pretty positive expectations in the cryptocurrency trading sphere.
Directional Movement Index shows total equilibrium between buyers and sellers, while the ADX has been losing some levels while confirming the loss of momentum.
Author
Tomas Salles
FXStreet
Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland. He expanded his technical training following the guidance of great experts on the financial markets.
