- The price of Bitcoin is under pressure with risk of extreme movements.
- ETH/USD holds above $100 and shows buying activity.
- XRP is in a good position for rises but needs time to consolidate.
The news of the day is that VanEck SolidX in collaboration with the CBOE has resubmitted their license request for an ETF on Bitcoin to the SEC. The headlines that accompany this news already warn that this issue may take a long time, even beyond the end of this year.
Of course, no one knows when the SEC can give its approval. They have previously warned that they are in no hurry to address this controversial issue.
However, something is going to happen in the short term. I don't know if the price of Bitcoin is going to plummet back to the 2018 lows of $3,150 or if there is an attack on the critical level of $4200, but something is yet to come. If we apply the Bollinger bands in the daily range chart, we see that the price is in a compression situation that will explode sooner rather than later.
BTC/USD 240 Minute Chart
The BTC/USD pair is currently trading at the $3.396 price level and trying to overcome the $3.400 resistance level (price congestion resistance). Of the three leaders in the cryptocurrencies market, Bitcoin showed the least bullish power at the beginning of the week.
Below the current price, the first support level for BTC/USD is at the $3,300 price level (congestion support). The second support level is $3,240 (price congestion support) while the third support level is $3,150 (price congestion support and relative lows).
Above the current price and beyond the resistance at $3,400, the BTC/USD pair must overcome a significant resistance at $3,465 (EMA50 and price congestion resistance). From this price level to the next resistance there is a free space that is only occupied by the SMA100 at $3,536, a level that if the BTC/USD can pass, it will take us directly to the $3,600 level (price congestion resistance). Finally, the third resistance level is at $3,690 (price congestion resistance), a level that is reinforced by the presence of the SMA200 at $3,670.
The MACD on the 4-hour chart completely loses its bullish slope, and the opening between the lines disappears. The structure is propitious for a new upward movement, but the weakness shown by the Bitcoin reduces its potential.
The DMI on the four-hour chart shows bears having trouble staying above the ADX line. The bulls also show a lack of strength. The technical scheme is more conducive to climbs than to descents.
ETH/USD 240 Minute Chart
The ETH/USD pair is currently trading at the $106 price level, recovering support at $105.5 (price congestion support). The Ethereum is, of the three market leaders Crypto, the only one that at this time achieves the security of clear support level.
Below the current price, the ETH/USD pair has first level support beyond the one mentioned above is at $97 (price congestion support). This level is crucial in all analysis timeframes, since losing it would bring the price to the $85 level (price congestion support). The third level of support is at $82 (price congestion support).
Above the current price, the first resistance level is at $109.4 (price congestion resistance), a level that is reinforced by the presence of the EMA50 at $110.2. The second resistance level is at the price level of $115 (price congestion resistance and SMA100). From this price level, the ETH/USD pair would jump to the third resistance level at $130 (price congestion resistance and SMA200).
The MACD on the 4-hour chart is similar to that seen on the Bitcoin. In this particular case of the ETH/USD, it retains a slight uptrend, but the line spacing has wholly disappeared. It is a setup propitious for an upward movement.
The DMI on the 4-hour chart shows how the bears have been losing strength in the last few days as the bulls reacted by increasing their activity to lower price levels. It is clear that they consider the current price levels as an opportunity.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.305 price level. Yesterday, the XRP fell sharply but respected the $0.30 level.
Below the current price, the first support level is at the $0.296 price level (price congestion support). The second support level for the XRP is $0.28 (price congestion support), an essential level since losing this support would lead the XRP/USD pair in the direction of the 2018 lows at $0.257 (price congestion support and relative minimum).
Above the current price, the first resistance level is $0.3082 (price congestion resistance and EMA50). The second resistance level is at $0.32 (price congestion resistance), a level that is reinforced by the presence of the SMA100 at $0.316. Finally, the third resistance level is at $0.335 (price congestion resistance and SMA200).
The MACD on the 4-hour chart shows a cross-profile downward but within the bullish zone of the indicator. The typical development of this structure is usually a lateral bullish behavior.
The DMI on the 4-hour chart shows bears again more active than bulls but for a small advantage. Both sides of the market show significant levels of activity, so a clear break in either direction can find considerable support.
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