- Market sentiment remains neutral despite yesterday's hikes, recalling past disappointments after previous pumps.
- Ethereum is positioned to beat Bitcoin in the next bull market.
- XRP is hit and misses the upside, but the ball is still in play.
Tuesday was a fantastic bullish day in the cryptocurrency markets, a positive trading day that was announced here with the help of technical analysis a few minutes before it started.
The rises have been widespread, in some cases reaching outrageous magnitudes as is the case of Bitcoin BSV (+70.5%), Bitcoin Gold (+77.38%) or DASH (+47.23%).
Some of these upside proposals are risky since when they occur in illiquid assets, the timing of profit collection can be complicated and take a large part of the profit in the process.
The winners by trading volume were Bitcoin ($10.9bn), Ethereum ($3.22bn) and Litecoin ($1.54bn). XRP came in sixth place and was below the billion mark at $736.22M.
Despite the rise, market sentiment is in neutral mode, citing statistics from alternative.me. Its sentiment indicator marks 54, on a 0-100 scale (0- extreme fear, 100- extreme euphoria).
The charts corroborate this neutral market level, as after yesterday's increases the benchmark target prices for moving into the Top 3 in full bullish mode are still intact, or almost so. XRP has broken out of the bullish trend that began in December 2018 and had been moving in bullish territory for a few hours, as it did in November.
Outside the Top 3, the ETH/BTC pair did confirm the upward breakout of the ultra long-term trend line and showed it with a +7% upside.
ETH/BTC Weekly Chart
ETH/BTC is currently trading at the price level of 0.01885 and it is showing strength by surpassing the EMA50 by 0.0185. ETH/BTC managed to escape the bearish zone yesterday. Now, it is moving in neutral territory, free enough to step up if the money flows towards Ethereum from Bitcoin. The motivation of this movement is the tendency of Ethereum to do better than Bitcoin in rising market environments.
Above the current price, the first resistance level is at 0.020, where the SMA100 and the SMA200 converge with a price congestion resistance level. The second resistance level is at 0.022 and the third one is at 0.023. If price breaches the 0.023 level, the rally will accelerate towards the 0.025 and 0.027 levels.
Below the current price, the first support level is at 0.0185, then the second at 0.018 and the third one at 0.017.
The MACD on the daily chart is improving and is once again gaining in line opening and bullish momentum. The moving averages are just below the zero levels of the indicator. The crosses from the bearish to the bullish zone are usually intricate and require several attempts.
The DMI on the daily chart shows the bulls moving powerfully upward and over the ADX line. This crossing exponentially increases the chances of this upward movement consolidating in time.
BTC/USD Weekly Chart
BTC/USD trades at $8762 after failing to break out of the price congestion resistance level at $8800. The target for the crossover scenario to a bullish environment is the $9100 price level. The SMA200 also moves at this level, which complicates and validates the importance of the resistance.
Above the current price, the first resistance level is at $8800, then the second at $9100 and the third one at $9815.
Below the current price, the first support level is at $8500, then the second at $8200 and the third one at $8000.
The MACD on the daily chart maintains the upward slope and the opening between the lines. The profile is strongly bullish and suggests that the previous trend will continue.
The DMI on the daily chart also shows a continuity of the upward trend, with bulls increasing in strength as bears retreat further downward.
ETH/USD Weekly Chart
ETH/USD is currently trading at the $164.85 price level and remains above the SMA100, which becomes technical support. Ethereum attempted at the $170 level late in the session, but the Asian day has already made it clear that it is not accessible at the moment. The target for a move to a bullish scenario is at $190. At that level, we can find the SMA200, a co-management price resistance and the long-term downward trend line.
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 resistance level is at $158.8, then the second at $155 and the third one at $150.
The MACD on the daily chart shows an upward trend, with a steeper upward slope and also more openness between the lines. This indicator suggests that the bullish trend is likely to continue.
The DMI on the daily chart validates yesterday's movement, and the bulls are now trading above the ADX line and beginning a medium-term bullish pattern. The bulls are sinking at low levels, showing no sign of improvement.
XRP/USD Weekly Chart
XRP/USD is currently trading at the price level of $0.2353 and is the only component of the Top 3 that has been out of the bearish scenario for a few hours. A change of scene to a more positive one seems inevitable in the next few hours.
Above the current price, the first resistance level is at $0.24, then the second at $0.255 and the third one at $0.267.
Below the current price, the first support level is at $0.22, then the second at $0.20 and the third one at $0.19.
The MACD on the daily chart shows how the moving averages are finally entering the bullish territory. They do so with good tilt and open between the lines. The current setup suggests that the bullish trend may continue.
The DMI on the daily chart shows the reason for the failure to escape the bearish scenario. The bulls tried to break the ADX line upwards but failed. The bears, which are moving down for another day, confirm the validity of the bullish move.
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