- Moving average structure proposes increased volatility and subsequent upward crossover by mid-February.
- The gap within the top three currencies is expanding, with Bitcoin leading and XRP lagging behind.
- All technical structures would explode upwards if fresh money comes in again.
The crypto markets continue to turn to a new bullish phase. This turnaround began at the beginning of the year after a consolidation phase that started in mid-2019.
The more reactive moving averages are starting to cross the slower moving averages upwards.
The process will take time and will most likely lead to increased volatility, with the possibility of some unexpected downward movement.
The projection of the current scenario warns of a possible upward window during the first half of February.
ETH/BTC Weekly Chart
ETH/BTC is currently trading at 0.019347. The price is moving in a zone between the major moving averages. The fastest, EMA50, is tilting upwards, while the slower SMA100 and SMA200 are still tilting downwards and punishing the price in the short term.
Above the current price, the first resistance level is at 0.0197, while the second at 0.020 and the third one at 0.022.
Below the current price, the first support level is at 0.0186, then the second at 0.018 and the third one at 0.017.
The MACD on the daily chart maintains the upward slope and the opening between the lines. The bullish trend is still fully active.
The DMI on the daily chart shows that the bulls are losing support from the ADX line and are thus deactivating the bullish trend. The bears are not reacting and do not seem to think their time has come.
The analysis of the indicators leaves contradictions between them and gives strength to a scenario of increased volatility.
BTC/USD Weekly Chart
BTC/USD is currently trading at $8,633 and has already accumulated three days of slight price declines. The bullish scenario is above $9,100 – a level that seems affordable but is well protected.
Above the current price, the first resistance level is at $9,100, then the second at $10,600 and the third one at $11,200.
Below the current price, the first support level is at $8,400, then the second at $8,180 and the third one at $8,000.
The MACD on the daily chart has lost its bullish tone and is preparing to cross over to the downside if a bullish rebound doesn't stop it. The current setup would support a bullish window scenario in two to three weeks.
The DMI on the daily chart shows the bulls deepening below the ADX line. The sell-side of the market is increasing its strength.
ETH/USD Weekly Chart
ETH/USD is currently trading at $167.17 imitating the structure of the BTC/USD but with a time lag of several days.
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 $160, then the second at $155 and the third one at $150.
The MACD on the daily chart is losing its upward slope but is not yet heading for the downward cross. The opening between the lines is still positive, which would help the Ether do better than the Bitcoin if new money enters the market.
The DMI on the daily chart shows the bulls deepening below the ADX line. In the case of the Ether, the bears don't move up as they do in the case of Bitcoin. Again, the Ether would do better than the Bitcoin if the market starts to rise.
XRP/USD Weekly Chart
XRP/USD is currently trading at $0.2363 and is moving upwards, enjoying last week's bullish scenario exclusively.
XRP moves in open terrain with fewer barriers to upward movement than the Bitcoin or Ether.
Above the current price, the first resistance level is at $0.237, then the second at $0.2404 and the third one at $0.253.
Below the current price, the first support level is at $0.235, then the second at $0.22 and the third one at $0.20.
The MACD on the daily chart shows a smaller upward slope, although the opening between the lines remains positive. The MACD on the daily chart shows a lesser bullish trend, although the opening between the lines remains positive.
The DMI on the daily chart shows that the bulls are once again heading towards the ADX line, attempting to conquer the bullish setup. The bears are holding at low levels and don't seem to want to dispute the control of the pair.
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