- It is very likely that the beginning of the next decade will be defined in the last days of the current one.
- Top cryptos show technical indicators turning upwards despite prevailing weakness.
- It is strongly recommended to use protection stops due to the large potential falls of the current moment.
This week is the first of the last month of this decade is being painted gray for cryptocurrencies, according to a broad consensus of analysts.
And precisely because of the dates, I consider it appropriate to carry out a test of what could happen to the BTC/USD pair in the remainder of the decade and the beginning of what could be new "Roaring Twenties."
The price
The wide-angle analysis allows us to detect a guiding trend line that begins at the end of May 2016 and which has served as a reference in the phases of price correction after historical highs.
This trend line would cross with the price of the BTC/USD pair at around $6,250 (blue dotted lines) and would indicate a critical first buying entry point.
At this point of purchase, the placement of the safety stop is complicated as there is a good chance that the BTC/USD pair will make a bearish extension to the lower parallel trend line at the price level of $5,500 (red dotted line).
If this bearish extension scenario were to occur, the stop point would be a little below $5,000.
The Moment.
For the time horizon analysis, I will rely on the ETH/BTC chart, a pair that allows to track the possible behavior of Bitcoin according to its close relationship with Ethereum.
The ETH/BTC pair has been in a bearish trend since June 17 and in the next few days could face for the third time the bearish line.
The projection varies according to the possible behavior of the ETH/BTC pair in the short term:
- If the current bullish momentum continues, the meeting point is approximately mid-December.
- If the ETH/BTC pair loses strength and moves sideways, the possible cross would happen around Christmas Day.
- If Ethereum loses its relative strength with Bitcoin and moves below the price level of 0.019, the scenario would project beyond the beginning of the next decade.
ETH/BTC Daily Chart
ETH/BTC is currently trading at the price level of 0.204 and has made three consecutive days of gains.
Above the current price, the first resistance level is at 0.0217, then the second at 0.022 and the third one at 0.025.
Below the current price, the premium support level is at 0.020, then the second at 0.019 and the third one at 0.018.
The MACD on the daily chart moves slightly below the neutral level but is curving higher, so if the momentum remains, the short-term bullish trend can continue.
The DMI on the daily chart shows how the bears lose the support of the ADX line as the bulls head higher to meet them. This confrontation could mark the future not only of the Ethereum against Bitcoin but for the entire crypto market for 2020.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at the $7.299 price level on a new visit to the low end of the current bearish trend.
Above the current price, the first resistance level is at $7,425, then the second at $7,500 and the third one at $7,600.
Below the current price, the first support level is at $6,900 and the third one at $6,750.
The MACD on the daily chart shows a profile of an impending bullish cross. This bullish cross does not have to lead to an immediate upward movement of the price, but it does in the short term.
The DMI on the daily chart shows how the bears continue to lose strength as the bulls move away from the lows. Buyers move at a short distance from sellers so that they could dispute leadership in a few days.
ETH/USD Daily Chart
ETH/USD is currently trading at the $149.1 price level, slightly below the $150 psychological level.
The first resistance level is at $150, then the second at $155 and the third one at $160.
The first support level is at $140, then the second at $135 and the third one at $125.
The MACD on the daily chart shows a profile of an impending bullish cross. As in the case of the BTC/USD pair, this cross does not represent an immediate price increase.
The DMI on the daily chart shows how bulls move higher with strength. Bears lose strength with an intensity similar to that gained by buyers. The encounter between both sides of the market could occur in the next few days.
XRP/USD Daily Chart
XRP/USD is currently trading at the $0.2201 price level and clings to the $0.22 support level.
Above the current price, the first resistance level is at $0.24, then the second at $0.253 and the third one at $0.26.
Below the current price, the first support level is at $0.22, then the second at $0.18 and the third at $0.15.
The MACD on the daily chart shows a possible bearish rejection profile after a first attempt to cross upwards. This typical pattern of stock charts is uncommon among cryptocurrencies, but it could happen.
The DMI on the daily chart shows how the bears lose strength and are well below the ADX line. The bulls are reacting with little force to the upside, so it seems that the possible bearish rejection of the MACD may be conditioning the buying side.
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
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
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera
Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera. Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera.
Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds
Bitcoin (BTC) price remains range-bound, holding above the $63,000 level, while its upside is capped below $68,000, going against or delaying the assumption that the fourth halving would be a 'sell-the-news' outcome.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce reliance on the US dollar after plans for a stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?