- Bitcoin, Ether and XRP show positive signs and step down from the global sell-off.
- The cliffs of hell are still close, so there might be some selling aimed at shaking off the weak hands.
- Crypto could begin to move up at the end of this week.
The terrible situation facing the social and economic system on a global scale is bringing the financial markets to the brink of collapse. At this moment, it is impossible to predict when Wall Street will stop falling, as the charts have a verticality never seen before.
The technical indicators of the equity, bond and commodity markets have reached such extreme levels, the speed is so high, that supports are being easily drilled and entering worse and worse scenarios.
The impact on the cryptocurrency segment has also been devastating. The Top 3 components have lost the bullish scenario created after the long winter of 2018 and 2019 but avoided from falling into the worst-case scenario for the time being.
It is significant how, after the first wave of selling, Bitcoin, Ether and XRP are holding up the rate much better than other quoted markets.
The bullish reaction that started on Friday didn't have much of a run, as I explained in the morning article. Still, the price develops following technical price analysis theory and not driven by panic.
The day leaves us with an important fact from the structural point of view of the crypto board. Yesterday the ETH/BTC reached the SMA200 in the daily range, and today it is rising in green on this critical arithmetic average. In the medium and long term, this critical support must hold, and from this point on prices will take traction and develop the next uptrend.
The cryptocurrency market is still alive and now has the opportunity to stand out from the unhappy situation of other quoted markets.
ETH/BTC Daily Chart
The ETH/BTC pair is currently trading at 0.02108 and is regaining the SMA support it lost on Saturday. The bearish consolidation structure could end later this week.
Above the current price, the first resistance level is at 0.022, then the second at 0.025 and the third one at 0.0268.
Below the current price, the first support level is at 0.021, then the second at 0.020 and the third one at 0.018.
The MACD on the daily chart shows a profile that is beginning to turn and points to a future upward cross, which does not necessarily imply a price rise but makes it much easier.
The DMI on the daily chart shows the bearish bears drilling down the ADX line, ending the previous bearish momentum. The bulls are not reacting at the moment, suggesting caution in the short term.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at $5815 after touching $7000 late last week. The current structure is one of consolidation after the recent upward movement. BTC/USD is now in the middle of the ultra long-term bearish channel, equidistant between the moon and hell.
Above the current price, the first resistance level is at $5900, then the second at $6200 and the third one at $6500.
Below the current price, the first support level is at $5500, then the second at $5100 and the third one at $4900.
The MACD on the daily chart crossed up, a rare cross given the steepness of the fast-moving average. This type of crosses usually causes erratic movements in the short term.
The DMI on the daily chart shows that the bears are losing strength quickly, as fast as the bulls are reacting to the upward movement. The structure proposes a progressive improvement in the price structure.
ETH/USD Daily Chart
The ETH/USD pair is currently trading at the price level of $122.5 and shows a consolidation structure following recent increases. The short-term outlook shows an attraction at the confluence of the moving averages, at the price level of $180.
Above the current price, the first resistance level is at $130, then the second at $140 and the third one at $150.
Below the current price, the first support level is at $120, then the second at $115 and the third one at $120.
The MACD on the daily chart shows a bullish cross is currently taking place. The crypto market tone throughout the day may mark the evolution of Ether's price in the short and medium-term.
The DMI on the daily chart shows bears losing strength, although less so than in BTC/USD. The bulls are reacting bullishly, but still far from being able to challenge the bears for the lead.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at a price level of $0.1487 XRP's setup is not as positive as its peers in the Top 3 cryptocurrencies, but technically it is consolidation after the upward movement.
Above the current price, the first resistance level is at $0.17, then the second at $0.19 and the third one at $0.20.
Below the current price, the first support level is at $0.14, then the second at $0.132 and the third one at $0.128.
The MACD on the daily chart shows how, in the case of the XRP/USD, the bullish cross ends. The profile of the fast-moving average is aggressive, which can cause some turbulence.
The DMI on the daily chart shows the same technical structure as the Bitcoin or Ether. The current technical pattern usually develops with a bullish crossing attempt by the bulls, although this crossing is often not achieved on the first attempt.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.