- The candidate for the best performance is Bitcoin, the worst is Ethereum.
- XRP expresses its volatility with wide ranges and mood swings.
- The market is overbought in the short term, oversold in the long term.
Yesterday left us with logical movements of price declines necessary to regulate the extreme levels reached in the previous hours.
Today there are several comments in social networks which qualify the recent rise as a delayed reaction to the announcement by JPMorgan about its cryptocurrency. The price always leads the next step and whatever the reason for the surge, technical levels have been broken completely change the scenario in the medium term.
As I said yesterday, Bitcoin is the one that is best positioned at this phase. The king of the crypto-board is seriously evolving at this stage, the beginning of a medium-term bullish movement. The BTC/USD pair reached a lower resistance zone at $3,980 (price congestion resistance) and was rejected down to the current level.
BTC/USD 240 Minute Chart
The BTC/USD pair is currently trading at the $3.917 price level. After being rejected by a price congestion resistance of $3,980, Bitcoin went down to seek support at the $3,900 level (price congestion support). Early in the European session, the market is moving higher, in what appears to be the beginning of a bullish extension movement.
Above the current price, the first resistance level is at $3,980 (price congestion resistance), then the second resistance level is at $4,050 (price congestion resistance). The third resistance level is at $4,200 (price congestion resistance) and, in my opinion, where strong consolidation will occur.
Below the current price, the first level of BTC/USD support is at $3,900 (price congestion support), then the second level of support in the distant $3,700 (price congestion support) and the third level of support is at $3,600 (price congestion support).
It is important to note that as the hours go by, more support levels accumulate above the upper limit of the bearish channel broken up this week by Bitcoin. This data provides strength to the breakage and confirms the change of scenario in the medium and long term.
The MACD on the 4-hour chart shows a profile of a bearish cross. This configuration is responsible for the bullish tone of the market, mainly due to the effect of the rejection pattern on the bearish cut.
The DMI on the 4-hour chart shows the bulls dominating the situation despite the loss of momentum. The bears react slightly to the upside but remain far from signal levels. The bearish side of the market is gone. On the other hand, the ADX is accelerating despite the declines and marks the target level for the next bullish move.
ETH/USD 240 Minute Chart
The ETH/USD pair is currently trading at the $145 price level. The high point on Tuesday was the $150 resistance level, from where it dropped to the first support level of $142 (price congestion support).
Above the current price, the first resistance level for ETH/USD is at $150 (price congestion resistance), then the second is at $161.5 (price congestion resistance) and the third at $170 (price congestion resistance).
Below the current price, the first level of support is at $142 (price congestion support), then the second is at $130 (price congestion support and EMA50) and finally, as the third level of support is at $120 (price congestion support and SMA100).
The DMI on the 4-hour chart shows the bulls dominating the situation although with considerably less advantage than in the previous days. On the other hand, bears slightly increase their strength but without reaching significant levels. The ADX remains at high levels, being a target for the D+ indicator in the short term.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.331 price level. The relative high is $0.35 while yesterday support was sought at $0.32 (price congestion support).
The first resistance level is at $0.334 (price congestion resistance), then the second resistance level is at $0.35 (price congestion resistance). Above this price level, the XRP should take a quantitative leap to quickly move to the third resistance level at $0.39 (price congestion resistance).
Below the current price, the first support level for the XRP/USD pair is $0.32 (price congestion support). The 50-period exponential moving average offers a second level of support at $0.314, just halfway to the third level of support at $0.3080 (price congestion support and SMA200).
The MACD on the 4-hour chart shows a price profile at a bearish cut, which in all likelihood will lead to an upward rejection movement today.
The DMI on the 4-hour chart shows the bulls dominating the situation, while the bears react strongly to yesterday's retracement.
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