- The main crypto assets turned upward when the attack in Baghdad became known.
- There are medium-term upside possibilities that could drive the market into Bitcoin’s halving.
- The crypto market is very sensitive and reacts quickly to events.
The first week of the year is coming to an end and it seems that the sweet and peaceful Christmas is rapidly moving away in the face of geopolitical events that threaten the apparent tranquillity of global financial markets.
The Middle East is awakening to a new level of tension that could lead to a multilateral military conflict.
Shortly before the air raid on Baghdad's airport, Bitcoin was piercing the support at $7000 as announced yesterday. However, the change of the day has brought a significant recovery from the previous price level.
The recurring question of the day revolves around the motivation for the upward shift.
Is it a jump to the safety of Bitcoin or a technical move?
ETH/BTC Daily Chart
The ETH/BTC pair continues its slow approach to the ultra-long term downward trend line. Today it is the Bitcoin that sets the trend and leaves the Ethereum 1.22% behind to the price level of 0.018.
The rapid improvement of Bitcoin versus the Ethereum could indicate that the inflow of money into the ecosystem has been selective and one could express the search for shelter from a sudden increase in global risk.
The space available for the Ethereum pair to move up only extends to the bearish side of the price, as the resistance on the upside is as strong as it is technically relevant. An upward break above 0.019 would give a robust upward signal.
Above the current price, the first resistance level is at 0.018, then the second at 0.0185 and the third one at 0.019.
Below the current price, the first support level is at 0.0173, then the second at 0.0163 and the third one at 0.013.
The MACD on the daily chart continues to hold the bullish momentum despite today's sudden drop, so for the time being, it is all about a technical correction without significant consequences.
The DMI on the daily chart shows a slight upward reaction for bears and an equally mild downward reaction for bulls.
BTC/USD Daily Chart
BTC/USD is currently trading at $7328. On the 4-hour chart, it is evident that the events in Baghdad have coincided with the end of the downward movement that began yesterday at mid-session in Europe.
The candlestick that announced the upward turn left a notch in the support level at $6850, to change direction immediately, leaving a full Dragonfly Doji at the bottom. This pattern signals changes in direction from down to up.
The upward continuation of the next bar with a high of $7250 and the current development in the direction of $7400 increases the consistency of the sentiment change.
Above the current price, the first resistance level is at $7400, then the second at $7500 and the third one at $7600.
Below the current price, the first support level is at $7100, then the second at $6850 and the third one at $6750.
The MACD on the daily chart shows a bullish rejection of the upward cross attempt that took place yesterday. This first test of strength on the buying side needs to be confirmed. Another downward attempt may reveal a bearish trap and could have medium-term bearish implications.
The DMI on the daily chart reflects the current delicate balance situation. The bears that were outperforming yesterday are losing strength and going to the same level as the bulls. The buying side has a positive reaction for the first time after five days of falling.
ETH/USD Daily Chart
The ETH/USD is trading at the $132.29 price level and recovers support at $130 for the first time in 4 days. The bullish reaction to the ETH/USD pair, as seen from the 4-hour chart, is similar to that we see on BTC/USD. The bullish target for the next few hours is the SMA200 which is currently trading at $136.8 in this 4-hour time frame.
Above the current price, the first resistance level is at $142.3, then the second at $150 and the third one at $155.
Below the current price, the first support level is at $130, then the second at $125 and the third one at $120.
The MACD on the daily chart shows that the previous bullish trend is increasing and the distance between the indicator's moving averages is widening. This setup also improves the upbeat profile. The chances of a consistent upward movement are growing.
The DMI on the daily chart shows how the bears and bulls will cross into the next few hours. The bears continue to be above but with an advantage that they would lose if the day continues to rise for the ETH/USD pair.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at the price level of $0.193 and is following the path of its peers in the Top 3 cryptocurrencies. The bullish turn after losing the support level at $0.19 comes at the same time as the Bitcoin and Ethereum.
Above the current price, the first resistance level is at $0.197, then the second at $0.217 and the third one at $0.23.
Below the current price, the first support level is at $0.19, then the second at $0.17 and the third one at $0.15.
The MACD on the daily chart widens the gap between the moving averages and also improves the bullish profile.
The DMI on the daily chart shows a clear difference from the Bitcoin and the Ethereum. In the case of the XRP/USD pair, the bulls are improving from recent lows but are still far from the current bearish levels.
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