- Bitcoin enters the bullish zone but slips below support along the way.
- ETH/BTC receives a heavy punishment and loses bullish momentum.
- XRP continues to play alone and so must find the way to heaven.
It is almost usual practice of the Crypto market that technical extremes occur at the end of the working week – setting the stage for action over the weekend.
To comply with this custom, Bitcoin kicks off the day just above the long term bearish channel. For now, it has been unable to escape the bearish scenario – and after Altcoins dropped in the morning – it remains alone beyond the wall.
The first condition to declare a bullish Crypto market has been fulfilled. But, as could not be otherwise, Altcoins suffer a generalized downturn and spoil what could have been the most awaited "long" signal of the year.
So, there is no room to rest during the weekend and our colleague John Isige will keep you up to date on any development.
In today’s ETH/BTC analysis – the Altcoin sector barometer – shows how It drew a bearish cover candle yesterday, thus sending ETH/BTC back to the bearish scenario and disappointing market expectations.
ETH/BTC Daily Chart
ETH/BTC is trading at the price level of 0.0309, losing EMA50 support. The miserable failure to break the 200-day SMA is an essential sign of weakness.
It is true that the bullish zone is close and the situation can change very quickly. As I explain below in the MACD and DMI analysis, the market background for ETH/BTC is very positive.
Above the current price, the first resistance is a strong confluence between 0.0311 and 0.03225 and composed, ordered from bottom to top by the:
- EMA50
- Upper parallel uptrend line
- Price congestion resistance
- SMA100
- SMA200
The second resistance level is at 0.0332 (price congestion resistance), and the third one for ETH/BTC is at 0.0339 (second upper parallel trend line).
Below the current price, the first support level of support for ETH/BTC is at 0.0301 (price congestion support), then the second at 0.0291 (price congestion support) and the third one at 0.0275 (price congestion support).
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The MACD on the daily chart holds onto the bullish zone, although with a slight downtrend. The lack of volatility is excessively flattening the indicators and causes future visibility to be zero. It is likely to come out of this situation with violence.
The DMI on the daily chart shows bulls dominating the market with ease and staying above the ADX line. The bears are weak and do not take advantage of yesterday's ugly figure to increase activity.
BTC/USD Daily Chart
The BTC/USD trades at the price level of $8,287. Despite getting through the wall and into the bullish zone, the lack of support from the Altcoin segment weighs heavily on the overall tone of the market.
Above the current price, the first resistance level is at $8,450; then the second is at $8,750 and the third at $9,150. All three resistance levels are due to price congestion.
Below the current price, the first support level is at $8,250 (confluence of price congestion support and long term down channel trendline ceiling). Then the second one would be again in a sub-$8,000 bearish scenario (price congestion support). Below $7,500 it would lose the bullish momentum and we could see the BTC/USD pair at the $5,500 level.
The MACD on the daily chart shows a structure hinting of a bullish cross attempt. This construction type usually causes a downward rebound – which due to the proximity of key supports – can be dangerous for short-term development.
The DMI on the daily chart shows a tie between the bulls and the bears. Both sides of the market are above the ADX, which frees them from obstacles if they are to move quickly.
ETH/USD Daily Chart
ETH/USD trades at $256.6, remaining within the range it has been since May 17.
Above the current price, the first three resistance levels are $260, then at $290 and finally at $305. All three levels have been generated by the congestion of close and open levels on the daily range in recent months.
Below the current price, the first support level is $250 (price congestion support), then the second support level is $235 (price congestion support). The third one is at $228 (EMA50).
The MACD on the daily chart shows a neutral structure with a bullish cross tendency. It is a figure that has little chance of developing a clean upward movement.
The DMI in the daily chart shows – as in Bitcoin’s case – a tie between the two sides of the market. However, in this case below the ADX line, which complicates a possible exit by either side of the market.
XRP/USD Daily Chart
XRP/USD trades at the $0.397 price level and continues to develop a bullish flag. It now enters the last third of the figure, which usually coincides with a bullish break.
Above the current price, the first two resistance levels are $0.412 and $0.428 (price congestion resistance). The third resistance level for the XRP/USD pair is at $0.432 and formed by the top line of the technical figure.
Below the current price, the first support level is $0.39 (price congestion support, EMA50, and technical figure bottom line). The second support level is $0.369 (double price congestion support), and the third one is $0.0345 (price congestion support).
The MACD on the daily chart shows a bearish profile and promises price weakness in the short term.
The DMI on the daily chart also shows a tie between both sides of the market and below both of the ADX line. The breakage of the flag figure will mark the development of the next few weeks.
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