- Bitcoin moves to the limit of the bear market.
- Ethereum remains strong against the King and provides the opportunity of the moment.
- XRP exposes its extreme weakness but has a bullish point in the short term.
At present, the control of the story in the media is a potent weapon and if it manages to reach the right objectives – it can be lethal.
It is also true that the speed at which things happen – and their spread across the globe – boost the swings of opinion in front of the headlines.
These headlines have turned to the bloodiest red in the last few hours. Bitcoin's technical situation is critical, and at the time of writing these words, BTC/USD plays with the razor's edge in a very reckless way.
It is impossible to assure that disaster will be avoided because Bitcoin is capable of the unexpected but – traditionally in the world of trading – bearish headlines are written over a reality usually less pessimistic.
However, there is still a bullish point in the market – the ETH/BTC cross. The bullish trend that began on September 7 continues to live – and after two days of falls – it rises again and recaptures the 0.21 level.
ETH/BTC Daily Chart
The ETH/BTC cross is currently trading at 0.02144 and is escaping the attraction of the SMA100 where it has found support. A close above 0.0217 would confirm the resumption of the bullish trend. Exceeding 0.0222 would mean overcoming the major support zone and a quality bullish flight.
Above the current price, the first resistance level is at 0.023, then the second at 0.025 and the third one at 0.026. At 0.030 we find the ultra long term bearish trend line that has kept the pair down for years — an obstacle as imposing and challenging to overcome as big as the reward at stake.
Below the current price, the first support level is at 0.021, then the second at 0.020 and the third one at 0.0186.
The MACD on the daily chart remains crossed bullish but with little separation between the moving lines and with a slight uptrend. The profile is unfavorable in the short term but could change rapidly if ETH/BTC moves towards 0.025.
The DMI on the daily chart shows how bulls found support at the ADX line, and now they are back to gain distance and boost the bullish momentum. The bears, on the other hand, withdraw quickly. The sellers remain above level 20 of the indicator – a fact that indicates that they are still in the game and have not surrendered.
BTC/USD Daily Chart
The BTC/USD is traded at $7,943 and plays recklessly with the support of the long-term bearish channel ceiling.
You can't rule out a raid into the channel, which can trigger a lot of stops and panic sellers. The situation is not comfortable on the bullish side, with the SMA200 at $8,500 as a substantial barrier to any attempt at bullish escape.
Above the current price, the first resistance level is at $8,000, then the second at $8,200 and the third one at $8,500. Above the third resistance level, the price structure would improve a lot and could move quickly towards the $9,500 price level.
Below the current price, the first support level is at $7,790, then the second $7,650 and the third one at $7,400. At the second support level, the BTC/USD pair would already be within the bearish channel, and the situation in the medium term could get dramatically worse.
ETH/USD Daily Chart
ETH/USD is currently trading at the price level of $170.2 and fails to maintain support at $170. The main moving averages are starting at $190 and can serve as a benchmark for possible short term moves.
Above the current price, the first resistance level is at $170, then the second at $180 and the third one at $190.
Below the current price, the first support level is at $160, then the second at $155 and the third one at $150.
The MACD on the daily chart shows a bearish cross that gradually penetrates the bearish zone of the indicator. The profile is technically weak and can worsen quickly even with some bullish options.
The DMI on the daily chart shows how the bears seem to lose the support of the ADX line, which would be a bullish signal. The bulls worsen their situation, although less than one might expect from the price movement.
XRP/USD Daily Chart
XRP/USD is currently trading at the $0.252 price level and manages to stay above the critical $0.235 support level.
The technical situation of the XRP continues to be very fragile. The continuous cycle of significant upside as a prelude to even more substantial declines has never worked well on the charts.
Above the current price, the first resistance level is at $0.25, then the second at $0.257 and the third one at $0.267.
Below the current price, the first support level is at $0.233, then the second at $0.20 and the third one at $0.19.
The MACD on the daily chart enters the negative side of the indicator with a moderate bearish profile. The statistics support the continuation of the bearish trend, but I consider it a small option towards a possible bullish turn.
The DMI on the daily chart shows bears losing strength after a failed attempt to breach the ADX line. Luckily for the sellers, the bulls do not take advantage of the moment to increase their strength and continue to lose power little by little.
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