- The ETH/BTC pair shows a pattern already seen in 2017.
- US government puts the focus on the use of cryptocurrencies for illegal activities.
- XRP stands out today and rises in opening above 10%.
The crypto board continues to be green at this European opening. Ether dominates the performance panel supported by XRP, as Ripple Ltd finally seems to wake up from its lethargy.
The ETH/BTC chart leaves us with a hint that could indicate that the journey beyond the moon has begun. It is a pattern that has occurred on two occasions, March 2017 and January 2018. In the chart, you can see the extreme levels in the DMI (black circles) and the subsequent evolution of the pair. The green arrow shows a possible target of the movement.
As the party continues, yesterday Treasury Secretary Steven Mnuchin testified at the US Congress. Regarding cryptocurrencies, he made a strong plea against their use for illegal activities.
He said that “cryptocurrencies, such as Bitcoin, have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs, human trafficking.”
He was also forceful in making it clear that the US administration would not allow cryptoverse to become a new haven for secret deposits like the one held by Switzerland until a few years ago.
He said “we want to make sure that technology moves forward; on the other hand, we want to make sure cryptocurrencies aren't used for the equivalent of old Swiss secret number banking.”
On the positive side, Mnuchin recognized that this technology is a breakthrough in transfers and micropayments. He also stated that the administration would welcome Bitcoin, Libra or any other if they meet the highest standards of transparency and accountability.
ETH/BTC Daily Chart
ETH/BTC is currently trading at the price level of 0.0254, losing some of its momentum after opening above 0.026. Yesterday's sharp rise pushes the technical situation of the ETH/BTC pair to the upside and increases the possibility of violent price reversals.
Above the current price, the first resistance level is at 0.027, then the second at 0.028 and the third one at 0.029.
Below the current price, the first support level is at 0.025, then the second at 0.023 and the third one at 0.022.
The MACD on the daily chart shows a very bullish profile. The MACD on the daily chart shows a very bullish profile. The width of the opening between the lines and the slope indicates that the upside may continue, although the risk of reversals to correct the excess is high.
The DMI on the daily chart shows that yesterday's rally has pushed the bulls back above the ADX line, a pattern of continued upward movement. Bears are going to the lowest levels not seen since March 2017.
BTC/USD Daily Chart
BTC/USD trades at $10231 and, for another day, it seems that Bitcoin is abstracting from the strong bullish market sentiment.
Above the current price, the first resistance level is at $10650, then the second at $12850 and the third one at $14000.
Below the current price, the first support level is at $9660, then the second at $9165 and the third one at $8800.
The MACD on the daily chart maintains the soft bullish gained earlier this week. The current bullish structure is fragile and if sales appear, Bitcoin could fall quickly.
The DMI on the daily chart shows that the bulls remain unchanged in terms of trend strength. Bears do fall and return to the lows of June 2019.
ETH/USD Daily Chart
ETH/USD is trading at the $259.5 price level and is down $10 from yesterday's high. The cumulative gain is 46.77% in February.
Above the current price, the first resistance level is at $270, then the second at $290 and the third one at $310.
Below the current price, the first support level is at $250, then the second at $238 and the third one at $228.
The MACD on the daily chart shows a very bullish profile. The opening between the lines and the slope indicate that the current trend may continue even though the risk of reversals to correct the excess is high.
The DMI on the daily chart shows that bulls are holding on to yesterday's high levels, while bears are retreating to the lows again.
XRP/USD Daily Chart
XRP/USD is currently trading at the price level of $0.3098 and leaves the day's high at $0.335.
Above the current price, the first resistance level is at $0.33, then the second at $0.335 and the third one at $0.345.
Below the current price, the first support level is at $0.30, then the second at $0.29 and the third one at $0.282.
The MACD on the daily chart is once again increasing the bullish trend.
The DMI on the daily chart shows how the bulls are reacting strongly to the bullish move. The bears are retreating, but not to the lows seen on Bitcoin or Ether.
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