- Cryptocurrencies have enjoyed a massive comeback early on Sunday, recovering most losses.
- The cleanup seen ahead of the weekend may be over, and it is time to look up to higher levels.
- Here are the levels to watch according to the Confluence Detector.
After surging in the previous weekend, cryptocurrencies held up their gains throughout most of the week but then suffered a sudden sell-off late in the week. Some had suggested that a massive sale on Bitstamp, worth $250 million worth in Bitcoin led to liquidation on BitMex.
There is additional speculation related to the fall of BTC/USD from above $8,000 to below $7,000, but in any case, cryptos are staging a comeback. The top trio is back up, rising around 10%. Apart from just correcting the sharp selloff, digital coins also enjoy Facebook's registration of a new financial tech company in Switzerland, the broadening of Coinbase's services to over countries, and warming of some regulators to blockchain technology.
What levels should we watch?
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD pierced resistance, now turned support
Bitcoin, the granddaddy of digital assets, is now trading close to $8,000 and battling $7,950, which is the convergence of the previous 1h-low, the Fibonacci 23.6% one-week, the Bollinger Band 15min-Middle, the Simple Moving Average 10-15m, the SMA 5-15m among others.
If it runs higher, the next level to watch is the $8,388 region, where the previous weekly high meets the Pivot Point one-week Resistance 1.
BTC/USD has overcome several significant levels and these levels now turn into support. The first cushion awaits at $7,700 where the Fibonacci 161.8% one-day, the Fibonacci 38.2% one-week, the SMA 10-1h, the PP 1d-R3, and the SMA 5-1d all meet.
Further down, $7,520 is a dense cluster of lines including the PP 1m-R3, the BB 1h-Middle, the SMA 200-1h, the SMA 50-4h, and the BB 4h-Middle among quite a few other levels.
ETH/USD eyes $281
Ethereum, the second cryptocurrency in terms of market capitalization, is battling $255 which is a juncture including the BB 1d-Upper, the SMA 5-15m, the PP 1d-R2, the BB 15min-Upper, and the BB 1h-Upper.
Initial resistance to Vitalik Buterin's brainchild awaits at $260 where the previous 4h-high and the Fibonacci 161.8% one-day converge.
The upside target is $281, the previous weekly high.
ETH/USD enjoys support at $242 which is the confluence of the SMA 10-4h, the BB 1h-Middle, the SMA 5-1d, the Fibonacci 161.8% one-day, and the Fibonacci 38.2% one-week.
Further down, $237 is another considerable support line where we see the Fibonacci 23.6% one-day and the Pivot Point one-month R3 meet.
XRP/USD holding above $40
Ripple, is battling $0.41 after the recent rise. It is c cluster including the BB 15min-Upper, the SMA5-1d, and the PP 1d-R1.
Looking up, resistance awaits at $0.4250 which is the convergence of the PP 1m-R2, the PP 1d-R2, and the BB 1d-Upper.
Next up, $0.4310 is where we find the Fibonacci 23.6% one-week. From there onwards, it may run far higher.
XRP/USD enjoys some support at $0.3970 where we see the confluence of the SMA 5-1h, the BB 15min-Middle, the previous daily high, and the BB 4h-Middle.
Further support awaits at $0.37 where the potent Fibonacci 61.8% one-week meets the Pivot Point one-month Resistance 1.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.