- Altcoins suffer severe losses to Bitcoin.
- Only a few technical contradictions give hope of reversing the situation.
- XRP confirms that it has disconnected from the main market.
Bitcoin kicks off the session with significant gains against both its crypto peers and fiat currencies.
The King has risen more than 10% against the US Dollar, 6.59% against Ethereum, 7.6% against XRP, and 8.9% against EOS.
The Bitcoin brand exerts an irresistible attraction and capitalizes on the desire to participate in this relatively new market. Some experts in the crypto-sphere claim the death of the Altcoins at the hands of an all-powerful Bitcoin – which absorbs a significant part of the capital flowing towards cryptocurrencies.
On the Altcoins side, the upward movement of Bitcoin takes its crosses to minimum levels and sends the ETH/BTC cross to a long-term quadruple bottom.
ETH/BTC Daily Chart
ETH/BTC trades at the 0.0249 handles and follows on from the bearish trend started yesterday. The stress level to which the pair is subjected contrasts the euphoria that reigns around Bitcoin.
Above the current price, the first resistance level is at 0.0268 (price congestion resistance), then between 0.0284 (EMA50) and 0.0322 (SMA200), there is a critical confluence with the epicenter at 0.03 (SMA100 and double price congestion resistance). Above 0.0322 the pair would enter a much more favorable scenario and could quickly recover.
If the fall in ETH/BTC does not stop, there is a genuine danger of breaking cycle lows and going into freefall. If this happens, we may witness panic in the market and see a heavy rotation towards Bitcoin – even causing significant losses in BTC.
Below the current price, the first support level is at 0.0229 (price congestion support), then the second at 0.0200 (price congestion support) and the third one at 0.0156 (price congestion support).
The MACD on the daily chart shows extreme contradictions. At some point, it crosses the upside but with almost no bullish inclination. This is the first of the contradictions.
The DMI in the daily chart shows the second contradiction. The bulls increase their activity in a significant way since early July and this coincides with the formation of the current battleground. The bears remain on top but are losing strength at the same pace as the bulls increase it.
BTC/USD Daily Chart
BTC/USD is trading at the $12,608 and loses some momentum after hitting daily highs at $12,826. In principle, the corrective process is not over yet, but given the strength of Bitcoin, nothing can be ruled out. This consolidation process would end with closing above $12,870.
Above the current price, the first resistance level is at $14,000 (price congestion resistance and relative maximum), then the second at $17,000 (price congestion resistance and the third one at $19,811 (historical maximum).
Below the current price, the first level of support is at $12,000 (price congestion support), then the second at $11,300 (price congestion support) and the third one at $10,600 (price congestion support).
The MACD on the daily chart shows a new bullish cross attempt that has yet to be achieved. If the bullish effort fails, the downward movement could accelerate to complete the reversal pattern.
The DMI on the daily chart clearly shows that the bulls are in control while the bears – who had tried to turn the price around – lose strength.
ETH/USD Daily Chart
ETH/USD is currently trading at $314.16 after reaching a peak of $318.4 where price congestion resistance has blocked the way.
Above the current price and the resistance already cited, the next resistance is at $332 (price congestion resistance), then at $357 (price congestion resistance) and the third one at $385 (price congestion resistance).
Below the current price, the first level of support is at $308 (price congestion support), then the second at $290 (price congestion support) and the third one at $260 (price congestion support).
The MACD shows a bullish cross attempt structure but without the strength that Bitcoin shows today. The profile insinuates a failure in the attempt.
The DMI on the daily chart shows bulls reaffirming control of the market by regaining the advantage over bears. The sellers tried to get above the ADX line, but failed and now lose momentum quickly.
XRP/USD Daily Chart
XRP/USD is currently trading at $0.399 after peaking at $0.408. XRP definitely seems to have disconnected from the rest of the market, and the times when it was the protagonist of explosive moves are over.
Above the current price, the first resistance level is at $0.405 (EMA50), then the second at $0.413 (price congestion resistance) and the third one at $0.4289 (price congestion resistance).
Below the current price, the first level of support is at $0.39 (price congestion support), then the second at $0.37 (SMA100 and double price congestion support) and the third one at $0.345 (price congestion support).
The MACD on the daily chart shows how the bearish trend loses momentum and takes on a flat profile. The profile is still far from a bullish cross scenario.
The DMI on the daily chart shows a total tie between the bulls and the bears. Both sides of the market are above the ADX line. This configuration is prone to sudden and violent movements.
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