- The main technical indicators are retracing and confirming a consolidation in the short term.
- Tom Lee anticipates a parabolic rise in price when Bitcoin overcomes the current phase of distrust.
- Market sentiment collapses and enters a "fear" zone.
The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.
Today the tone is slightly positive, and the Top 3 components regain the levels of support lost yesterday.
Tom Lee, the co-founder of Fundstrat, has stated at the Coingeek 2020 in London that when the Bitcoin reaches a critical size, it will experience an upward momentum similar to that experienced by Tesla in recent months.
Lee admitted that the current market is still tiny:
"The percentage of cryptography of traditional liquid assets is 0.1%. It's much smaller than people think," he said, adding, "Until crypto gets bigger, it's largely a retail market. What happens when institutions start buying crypto? Well, FOMO is going to take action.
Later in his speech, he raised the parallel with what happened with the actions of the automobile company founded by Elon Musk:
"In four months, the institutions went from an underweight Tesla to a market exposure that is 0.7% Tesla exposure; they added a market cap of $140 billion. The day the institutions decide they want to be cryptographic in terms of market weight, they will see the same kind of parabolic movement, almost in an instant".
Looking at statistics from alternative.me, the fear and greed index is currently at 44, the same as yesterday, indicating that the crypto market is still in "fear" mode. If trading above the $9000/BTC mark the market is afraid, I can't even imagine at what price level the emotional state would change to "euphoria".
ETH/BTC Daily Chart
The ETH/BTC pair is currently trading at the price level of 0.02705. Technically, it is significant that consolidation is occurring above 0.026.
Above the current price, the first resistance level is at 0.0275, then the second at 0.029 and the third one at 0.030.
Below the current price, the first support level is at 0.0265, then the second at 0.025 and the third one at 0.023.
The DMI on the daily chart shows the bulls dominating the ETH/BTC pair, although it maintains the bearish profile of the last few days. Bears are increasing their trend force a bit, but are still far from being able to threaten the dominance of the buying side.
BTC/USD Daily Chart
BTC/USD is currently trading at the price level of $9753, above the price congestion support level by $9625.
Above the current price, the first resistance level is at $10600, then the second at $11250 and the third one at $13862.
Below the current price, the first support level is at $9150, then the second at $8750 and the third one at $8400.
The DMI on the daily chart shows absolute indecision on both sides of the market: both bulls and bears ties at the 20 level of the indicator.
ETH/USD Daily Chart
ETH/USD is trading at the $263.7 price level, and despite today's rise, it fails to regain the first resistance level at $265.
Above the current price, the first resistance level is at $290, then the second at $306 and the third one at $315.
Below the current price, the first support level is at $250, then the second at $238 and the third one at $230.
The DMI on the daily chart shows the bulls losing strength continuously. The bears are increasing their power at the same rate as the buying side is losing it.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at the price level of $0.2759.
Above the current price, the first resistance level is at $0.285, then the second at $0.29 and the third one at $0.30.
Below the current price, the first support level is at $0.268, then the second at $0.255 and the third one at $0.24.
The MACD on the daily chart shows the most aggressive bearish cross profile among the Top 3. This setup is a clear reflection of the volatility that exists in the price of the XRP/USD pair.
The DMI on the daily chart shows that bulls and bears are already very close to the shock point. From this setup, we can expect an increase in volatility due to uncertainty.
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