- BTC/USD not able to break through key resistances now turns bearish.
- LTC/USD now trading close to major supports with an improved technical setup.
We described a scenario of a bearish acceleration initiated during yesterday’s Asian session. That move, which was confirmed just minutes later, happened at the same time that a spike in the EUR/USD. We still can’t conclude there’s a direct relation between both events, but our currency analysts are working on it.
Today we see the continuation of the bearish action as the most probable scenario, with the main Cryptocurrencies trading around congested areas, so sequences of quick movements should follow regular consolidation trading.
The price projections point to next weekend as the potentially most volatile time coming up, as price action should approach key levels.
BTC/USD 4H chart
BTC/USD is trading around $10580, a congestion level where the price got stuck on several occasions during February. It doesn’t seem that such level will be the end of the current bearish movement, as we see price heading down to $10200, $9980 and $9500.
MACD in the Bitcoin 4-hour chart is showing a perfect representation of what occured yesterday, with an opening that shows the bearish acceleration movement. The indicator is moving slightly below the 0 line and is proposing a bearish continuation for the upcoming periods.
On the other hand, Directional Movement Index shows a clear edge for the sellers, that have not been able to separate themselves from the ADX line. That diminishes the potential for the bearish action. Buyers are still diminishing, following the general trend, but they react pretty quickly to any bullish attempt.
LTC/USD 1H chart
Litecoin continued the Bitcoin bearish movement, although with a straighter movement, avoiding any stops until the current level of $191.83. That’s just where another trendline has been touched, starting at the same lows of February 17th that the prior trendline that used to rule LTC price action.
If the current support is lost, LTC/USD might quickly fall down to $169.7, an important level that precedes $144, the ultimate target for the bears.
MACD in the Litecoin 1-hour chart has not decelerated as in the BTC case, as the bearish movement has been more lineal, with barely any volatility that opens up the indicator.
Directional Movement Index is indeed showing here a pretty important increase in the sellers, together with a spike in the ADX. That is the confirmation of the trend strength, supporting continuity in the current action.
XRP/USD 1H chart
The Ripple chart is all over the place. XRP has a different outlook than the prior Cryptos, presenting a very inconclusive formation that reflects the confusion around the XRP/USD market. Ripple’s ability to capitalize on good news is seriously in doubt, as lots of the reports crossing the wires are potential applications for the Ripple’s platform technology but don’t impact the token.
Actually, Ripple seems completely detached from Bitcoin or Litecoin’s price action and is just following another path. The technicals show indecision and doubts surrounding the asset, so it will be crucial to see once the next Crypto bullish leg is reached, XRP can join the party and get back on track. If not, bulls might be in serious trouble.
MACD in the Ripple chart is still in positive territory, with the average and the signal laying above 0. That is positive for the asset, and we should track if Ripple might be the one giving the bullish signal eventually.
Directional Movement Index shows as well a certain equilibrium, not without doubts, with a certain bearish trend. This is a setup that supports a less-bearish scenario than other Cryptocurrencies.
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