- Some technical details tip the balance in favor of the Altcoin leaders.
- Top 3 cryptocurrencies move within the most bullish of the short-term scenarios. There is room for consolidation.
- Moving averages are accelerating and supporting the price at current levels.
Bitcoin and Ether are facing the challenge of overcoming the powerful downward trend lines that they have been putting the market through since the beginning of 2018.
In the analysis of the daily range charts, it is clear that the two leaders arrive exhausted, with the MACD’s crossing down serving as only one sign of weakness.
Meanwhile, In the weekly charts, the perception is the opposite of the shorter term. The indicators are on the edge of bullish crosses that by timeframe, would extend for months into the future.
Wednesday’s technical analysis is moving down to intraday ranges in search of more data, in an attempt to provide clarity.
The detailed analysis shows structural weaknesses in BTC/USD that could indicate a price reversal in the short term.
On the other hand, ETH/USD and XRP/USD, show safer structures that could behave better than Bitcoin if bears take control.
The third member of the Top 3, XRP, crossed the trend line upwards and is still above it – waiting for its colleagues. The wait can be expensive if Bitcoin and Ether fail.
The Fear & Greed Index on the alternative.me website is at level 52 – in the "Neutral" zone of the indicator. This level reflects a high dose of uncertainty.
On Wednesday, new money is entering Bitcoin, Ethereum Classic and Bitcoin Cash, and exits XRP, AMO Coin and Monero.
ETH/BTC 4-Hours Chart
ETH/BTC is currently trading at 0.01942, moving away from support at 0.0189. Last week's gains dragged the moving averages higher, and they are now in an active bullish profile.
The current structure comes out of the October highs, and its projection places the critical resistance level at 0.0205, but first, ETH/BTC should overtake the resistance at 0.0200.
Support at 0.018 seems to be strongly protected by the SMA200, while in the short term the EMA50 reinforces the 0.0195 level. The SMA100 at 0.0184 is the intermediate support in the scenario.
The MACD on the 4-hour chart is moving inside a bullish channel after the recent upsurge, now consolidating without approaching the 0 levels. The structure of the MACD is a concern as it repeats the pattern seen in the first half of this month and triggered a massive selloff.
The DMI on the 4-hour chart shows the bulls are still above the 20 levels, indicating an ongoing trend. The bears are losing some strength, but are staying close to the bulls and could easily take over.
BTC/USD 4-Hours Chart
BTC/USD is currently trading at $8,642. The pair entered the most bullish quadrant of the stage on January 14th, extending the upward trend from the December 18th lows.
Moving averages are tilted higher, although the EMA50 has lost its upward momentum in recent days.
The first resistance level is at $8,750, then the second at $9,151 and the third one at $9,675.
The first support level is at $8,600, then the second at $8,400 and the third one at $7,855 due to the presence of the SMA200.
The MACD on the 4-hour chart shows a mixed picture. On the one hand, the moving averages may cross upwards, but on the other hand, the cross will be on the negative side of the indicator. The situation could be resolved by a false cross that would bring about a drop in the price.
The DMI on the 4-hour chart shows that the bears are dominating the pair in the short term. The typical pattern suggests that this dominance may increase and dominate the pair towards lower price levels.
ETH/USD 4-Hours Chart
ETH/USD is currently trading at $168.09 after failing to open the Asian session with price congestion resistance at $170.
The major moving averages are very bullish and have room for further development.
Above the current price, the first resistance level is at $170, then the second at $180 and the third one at $190.
Below the current price, the first support level is at $163, then the second at $160 and the third at $155.
The MACD on the daily chart is about to cross the resistance level again. In the case of the Ethereum, this would be in the bullish area of the indicator. The situation of the averages is the big difference between the MACD of the Bitcoin and the Ethereum. This technical detail can mark the difference in behavior in the short term.
The DMI on the 4-hour chart shows a tie between the two sides of the market. The tie situation is with both sides above the ADX line, which would favor explosive resolutions.
XRP/USD 4-Hours Chart
XRP/USD is currently trading at $0.2348 after failing to reach $0.237 during the Asian session.
The moving averages are tilted higher and have room to develop smoothly.
Above the current price, the first resistance level is at $0.237, then the second at $0.258 and the third one at $0.2667.
Below the current price, the first support level is at $0.2315, then the second at $0.221 and the third one at $0.208.
The MACD on the 4-hour chart shows a similar structure to the Ether. The profile indicates an upcoming upward cross and the averages are moving in the positive zone of the indicator.
The DMI on the 4-hour chart shows a tie between the bulls and the bears. Both sides of the market are moving above the ADX line, which could indicate that the resolution of the link could be explosive.
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