- Many technical obstacles complicate the consolidation of the climb.
- Ethereum faces complex challenges in its attempt to lead the market.
- XRP stays at the door and may fall as volatility increases.
We arrived halfway through the week with the arrival of the first serious resistance on the Crypto board since the middle of last month.
The rise has coincided with the news of the problems Bitfinex has to explain what has happened with the $850 million of missing funds. The most recent explanation details how the company borrowed that money from users to cover another enterprise but argues that the money has already been returned. The problem is that the company transferred $1 billion to a Caribbean financial institution without any contract or any other documentation. Moreover, this entity now refuses to return the money to its owners.
Surprising? If that's true, I'd say it's like blushing out of embarrassment. A company that claims to be a leader in the cryptographic certification industry sends such a massive amount of money without any guarantee? If that's true, they have a severe problem.
However, the market now shrugs off this kind of news. The bullish rumor is outweighing everything, and the idea of being able to buy back the BTC/USD around $3,000 is fading away.
Any decline is used to increase positions, and negative news is ignored. This is the precise definition of a bull market is.
ETH/BTC 4 Hours Chart
ETH/USD is currently trading at the price level of 0.0301, resting just above the support level conquered at the close of yesterday's trading session at 0.0300.
The technical conquest is vital. Why? It returns the market's leading pair to the vicinity of the bullish parallel trend structure. The pair must recover this structure if it is to continue rising.
Above the current price, the first resistance level is between the 0.0316 and 0.0319 (price congestion resistance and lower parallel bullish trend line). The second resistance level is between 0.0332 and 0.0335 (price congestion resistance and parallel bullish trend line). The third resistance level for the ETH/BTC pair is between 0.0345 and 0.035 (parallel bullish trend line and price congestion resistance).
Below the current price, the first support level is at 0.030 (price congestion support), then the second support level is at 0.0292 (price congestion support). The third support level for the ETH/BTC pair is at 0.0275 (price congestion support).
The MACD on the four-hour chart shows how the averages have opened maintaining the uptrend even when reaching the neutral level of the indicator. This setup is a positive signal and dramatically increases the possibility of entering the bullish zone of the range.
The DMI on the 4-hour chart shows the bulls taking control of the market but not managing to frighten the bears, who remain at levels considered to have trend strength.
BTC/USD 4 Hour Chart
The BTC/USD pair is currently trading at the $5,310 price level, after beating the EMA50 and SMA100 confluence zone early in the trading session. It is imperative to maintain this level, since consolidating this confluence as support would provide solidity for the next sessions.
Above the current price, the first resistance level is at $5,500 (price congestion resistance), then the second resistance level is at $5,680 (price congestion resistance). The third resistance level for the BTC/USD pair is at $6,300 (price congestion resistance).
Below the current price, the first support level is at the confluence mentioned above of the EMA50 and the SMA100 at the $5,300 price level. The second support level for the BTC/USD pair is at $5,100 (confluence of the SMA200 and support for price congestion). The third level of support is at $4,580 (price congestion support).
The MACD on the four-hour chart has improved quite a bit from yesterday, opening the lines and increasing the slope. Moving averages are entering the neutral zone, which can momentarily stop the bullish process.
The DMI on the four-hour chart shows the bulls outperforming the bears. It is still pending to be able to overcome the ADX line, something to get to see the Bitcoin move actively towards the sky.
ETH/USD 4 Hour Chart
ETH/USD is currently trading at the $164.2 price level after failing to pass the SMA100 and leaving an ugly Gravestone Doji figure in the Japanese candlestick representation. Hopefully, the pattern that usually triggers this type of figure will not come into effect.
Above the current price, the first resistance level is at $165.7 (SMA100), then the second resistance level is at $180 (price congestion resistance). The third resistance level for ETH/USD is at $190 (price congestion resistance).
Below the current price, the first support level is a powerful confluence between the $161 and $163 price levels (SMA200, EMA50 and price congestion support). It is essential to note the configuration of the moving averages, with the EMA50 below SMA´s and ready to cross over to the upside, although it will undoubtedly make traders a little dizzy before doing so. The second level of support for the ETH/USD pair is $151 (price congestion support), then the third level of support is $142 (price congestion support).
The MACD on the four-hour chart is already entirely in the bullish zone of the indicator. It also does so with good openness and inclination. The least optimistic scenario proposes a test at the zero levels before continuing to rise.
The DMI on the four-hour chart shows how bulls outperform bears and also the ADX line, a robust bullish structure. The bears, on the other hand, do not let themselves be defeated and remain at levels close to level 20.
XRP/USD 4 Hour Chart
The XRP/USD is currently trading at the $0.309 price level, after reaching the SMA100 level yesterday and congestion resistance at $0.317.
Above the current price, the first resistance level is at $0.317 (SMA100 and price congestion resistance), then the second resistance level is at $0.328 (SMA200 and price congestion resistance). The third resistance level for the XRP/USD pair is $0.335 (price congestion resistance).
Below the current price, the first support level is $0.307 (price congestion support and EMA50). The second support level for XRP/USD is $0.30 (price congestion support), then the third support level is $0.292 (price congestion support).
The MACD on the four-hour chart is entirely in the bullish zone of the indicator, with a wide opening between lines and tilt. Despite this, the intention to move down is appreciated, and it is possible to repeat the pattern seen last April 18 (See picture).
The DMI on the four-hour chart confirms the possible price drop scenario. The bulls lose strength and head towards a bearish crossing of the ADX line. The bears for their part do not seem to believe in these possible falls and continue to decrease their strength trend. In the end an ambiguous scenario.
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