- Despite the rises of Bitcoin, bulls cannot proclaim victory yet.
- Buyer interest concentrates on Bitcoin, immune to bad news.
- Ethereum can do very well, but XRP can be a negative surprise.
Returning from a holiday in the fantasy bubble given to you by the theme parks of the largest illusions sales company in the world, the first analysis is going to be in the daily timeframe.
In the days I've been away, Bitcoin has finally managed to break the base of the tremendous long-term base side channel.
For its part, Ethereum accompanies the king on his way to annual highs. On its way, Ethereum loses strength in comparison to Bitcoin, something that does not agree with the bull market, although as I will explain below, "something is happening."
According to the typical behavior pattern of the crypto market, there has not been a single bull market in which Ethereum has done worse than Bitcoin. So, are we dealing with a bull market or not? Well, to be strict with the tango analysis, we have to say no. At least not yet.
Accumulation is the best description of what we are witnessing now, but so strong that it is driving up prices, especially of the asset that attracts professional investment, Bitcoin.
ETH/BTC Daily Chart
The ETH/BTC pair trades at the price level of 0.0279 and heading for historical lows below the 0.025 level.
After the sharp rise on May 6th, Ethereum sellers appeared, and now the support is lost due to congestion of the price around 0.028.
As we will see at the end of this section, the trend force indicators are showing a substantial divergence, and there is a high probability that we will see a bullish explosion of Ethereum.
Below the current price, the first support level is at 0.0275 (price congestion support, so the second support level is at 0.0268 (price congestion support). The third support level for the ETH/BTC pair is at 0.026 (price congestion support).
Above the current price, the first resistance level is at 0.0291 (price congestion resistance), then the second resistance level is at 0.030 (price congestion resistance). The third resistance level for the ETH/BTC pair is at 0.031 (price congestion resistance).
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The MACD on the daily chart shows a very flat profile and has much trouble getting across to the upside. The bullish cross is the logical direction although it can continue in the current situation for an indefinite time.
The DMI on the daily chart shows a substantial bullish divergence as, despite the sharp declines of the last three days, the bullish force improves and manages to outperform the bearish forces until this morning when they tie. The exit of this tie will be decisive and in my opinion, will give the signal for the beginning of a bull market of a large dimension.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at the $6,055 price level after beating the resistance formed by the base of last week's long term bearish side channel at $5,590.
Above the current price, the first resistance level is at $6,200 (price congestion resistance), then the second resistance level is at $6,300 (price congestion resistance). The third resistance level is at $6,400 (price congestion resistance).
Below the current price, the first support level is at $5,900 (price congestion support), then the second support level is at $5,600 (baseline of the lateral bearish parallel structure). The third level of support is at $5,500 (price congestion support).
The MACD on the daily chart shows a new bullish cross accompanying the relative highs. The indicator has yet to reach the levels seen at the beginning of April and if it fails to pass, this new momentum will form a bearish divergence.
The DMI on the daily chart shows that despite the recent highs the bulls are unable to pass the ADX line, which takes power away from the movement and limits it to the upside. On the other hand, the bears continue their downward trend.
ETH/USD Daily Chart
The ETH/USD pair is currently trading at the $171.8 price level, remaining within the same price range since early April. This range is between $180 above and $150 below.
Above the current price, the first resistance level is at $180 (price congestion resistance), then the second resistance level is at $190 (price congestion resistance). The third resistance level for the ETH/USD pair is at $195 (price congestion resistance).
Below the current price, the first support level is at $160 (price congestion support and EMA50), then the second support level is at $155 (price congestion support). The third level of support for the ETH/USD pair is at $150 (price congestion support).
The MACD on the daily chart shows a bullish cross although with little incline and also minimal opening between lines. In appearance, it is not a very solid structure.
The DMI on the daily chart does show us how bulls move well above the ADX line, which indicates a strong bullish trend force with substantial development possibilities.
With this data, and comparing it with BTC/USD and ETH/BTC, we can have an idea of the hidden scenario that could be developing.
XRP/USD Daily Chart
XRP/USD is traded at the $0.30 price level and remains below the bearish trend line that is preventing the XRP from rising as the market generally does. Also, it is the only one of the three assets analyzed that remains below moving averages.
Above the current price, the first resistance level is $0.308 (price congestion resistance and long term bearish trend line). The second resistance level is $0.32 (price congestion resistance, SMA100, and EMA50), so the third resistance level for the XRP/USD pair is $0.33 (price congestion resistance).
Below the current price, the first support level is $0.297 (price congestion support), then the second support level is $0.293 (price congestion support), and the third support level for the XRP/USD pair is $0.289 (price congestion support and relative minimum).
The MACD in the daily chart shows a very flat structure and in the negative zone of the indicator, which proposes a scenario of continuity of the current situation.
The DMI on the daily chart shows bears above bulls. Both are above the ADX line, which sinks due to the persistence of lateral movement.
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