- Bitcoin dominance set the 2019 peak in the first week of September.
- Altcoins' best performance may extend into the medium term.
- XRP can lead the next bullish stretch of the market.
The cryptocurrencies market has technical analysts under pressure by staying too close to the critical supports that jeopardize the bullish trend that started last December.
Forecasting the possible evolution in the next sessions is complicated – even more than usual – due to the enormous volatility that Bitcoin, XRP, and others are capable of.
During the first half of the year, Bitcoin took the lead on the bullish side. This dominance was showcased as Bitcoin’s peak annual dominance hit a high of 73.4% on September 3. Back then, the market kicked off a rotation that transferred the initiative to the Altcoin segment.
At the time of writing, the predominance of Bitcoin has dropped to 68.61%. This decrease may be negligible but it has a critical impact on the medium term. Both momentum and trend strength indicators imply a future change in predominance levels.
In weekly graphs, the scenario projection indicates dominance levels of 64% by the end of the year and 58.4% by the first quarter of 2020.
ETH/BTC Daily Chart
The ETH/BTC cross is currently trading at 0.0222 and continues the bullish trend that began on September 6. If we apply the information presented in the introduction to the ETH/BTC chart, we see that approaching the end of the year; we can define two price scenarios. In a trend acceleration environment, the target is around 0.027, while if current volatility levels are maintained, the prediction would be cut to 0.025.
In any case, Ethereum faces an ultra long term trend line as 2019 draws to an end. It is born from joining the highs of June 2017, when ETH/BTC traded at 0.15 and March 2018 – when it hit a low at 0.0123. The trend line currently passes through the 0.03 level.
Above the current price, the first resistance level is at 0.0229, then the second at 0.025 and the third one at 0.0268.
Below the current price, the first support level is at 0.0205, then the second at 0.0187 and the third one at 0.0181.
The MACD on the daily chart gains a little bit of uptrend but hardly any opening between the lines. It is a fragile structure in the short term.
The DMI on the daily chart shows how the bears continue to extend the loss of trend strength, while the bulls remain above the ADX line and confirm the bullish trend in progress.
BTC/USD Daily Chart
BTC/USD remains at $8,193 for another day and shows a sharp drop in volatility. Monday's large green candlestick triggered a pattern that indicates falling strength with every day that passes without an upward move. We could easily see a jump in price towards the $8,500 zone this week.
Above the current price, the first resistance level is at $8,480, then the second at $8,615 and the third one at $8,800.
Below the current price, the first support level is at $8,000, then the second at $7,880 and the third one at $7,750.
The MACD on the daily chart enhances the bullish profile even if it begins from a low point. The setup continues to be optimistic in the short and medium-term. However, until the distance between the lines increases, the situation is fragile and can turn around very quickly.
The DMI on the daily chart shows how the bulls moving out of the extreme levels reached the beginning of the month. The movement of the bears has been directly inverted and confirms a possible change of trend.
ETH/USD Daily Chart
ETH/USD is currently trading at $182.7 and sticks to Tuesday’s levels. Ethereum's situation is similar to Bitcoin’s but continually outperforming the King.
This relative better behavior is supported in a more advanced phase of changing trend forces. ETH/USD is a few days away from a possible change of leadership in favor of the buyer side of the market.
Above the current price, the first resistance level is at $190, then the second at $194.7 and the third one at $200.
Below the current price, the first support level is at $180, then the second at $170 and the third one at $162.
The MACD on the daily chart shows a slight increase in the bullish side but fails to increase the opening between the lines, penalizing the upside scenario.
The DMI on the daily chart shows how yesterday's inaction weighs on buyers’ moods, who give up a bit of trend strength. The bears, on the other hand, do not see it either, and they also descend and increase the sensation of doubt.
XRP/USD Daily Chart
XRP/USD is currently trading at 0.0278 and reflects the same indecision as Bitcoin and Ethereum. The technical situation of the XRP is better than that of its peers, but it is clear that Bitcoin sets the pace in the short term.
Above the current price, the first resistance level is at $0.0289, then the second at $0.285 and the third one at $0.29.
Below the current price, the first support level is at $0.27, then the second at $0.265 and the third one at $0.258.
The MACD on the daily chart shows an increase in the opening between the lines, which increases the potential for upward movement. The sloping trend continues and supports the continuation of the bullish trend.
The DMI on the daily chart shows the bulls in the control position despite the loss of strength in the last two days. The bears, on the other hand, descend slightly and retain the options to dispute control with the buyer side.
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