- The Top 3 cryptocurrencies achieve the first resistance levels.
Technically, Ripple is the most advanced and Ethereum lags behind.
The next few days may define the development for the first half of 2019.
After ten months of steady declines, the market will need something more to put aside the doubts. The falls can be very short-lived, and it is likely that we will see strong rises again from the beginning of the American session.
I warned last week about the rises of these days, but I made it clear that certain levels must be reached to determine a change of trend in the medium term.
My benchmark indicator, the ETH/BTC has done well in the past three days, and the Directional Movement Index gives a small advantage to bulls over bears. Yesterday this cross reached the main mid-term bearish trend line. The next few hours will be decisive for the development of the entire Crypto board in the coming months.
Today, the fierce criticism of Bitcoin comes from the CFA (Certified Financial Advisors). According to this respectable institution, Bitcoin lacks the necessary properties to be considered an asset and adds that as a currency of mass adoption, it also does not minimally comply with the requirements. Finally, they label it as a "Ponzi Scheme."
They argue that the value of Bitcoin is only sustained by new contributions, as it lacks recurring income that can justify any valuation. I agree with these statements, although I believe that following these arguments, other assets should qualify as "Ponzi Schemes". A good number of listed companies in the technology sector enjoy high valuations without making profits. All the assets need new inflows to see their prices increase.
BTC/USD Daily Logarithmic Chart
The BTC/USD is currently trading at the $3.919 price level (price congestion resistance). The value stopped yesterday at this resistance level and fell back to $3,660, from where it has again launched an attack on the psychological level of $4,000.
The general technical aspect is very favorable to the rises for the BTC/USD. The substantial declines of the last few weeks make the moving averages very far away and have room to move up quickly.
Above the current price, the first resistance is at $4,402 (price congestion resistance and EMA50). It is difficult for this level to be crossed upwards in a convincing manner. The second resistance level is at $4,940 (price congestion resistance). The third resistance level is at $5.325 (long term down channel extension).
Below the current price, the first support level is at $3,930 (price congestion support). The second support level is at $3,280 (price congestion support). The third support level is at $3,126 (annual minimum and trend line from historical highs.)
The MACD in the daily range shows a bullish profile without losing sight of the fact that it is still moving in an extremely negative zone. The averages are crossed upwards and with a perfect inclination that augurs a few more sessions, at least, to the upside.
The DMI in the daily range shows us how bulls have a minimal advantage over bears. The best description for the current situation is a tie.
XRP/USD Daily Logarithmic Chart
XRP/USD is currently trading at the $0.383 price level, surpassing the EMA50 that halted progress yesterday. The Ripple is making good use of this bullish momentum but it is struggling to take the lead among the three cryptocurrencies that dominate the sector.
Above the current price, the first resistance level is at $0.38 (EMA50). The second resistance level is at $0.413 (price congestion resistance). The third resistance level is at $0.428 (price congestion resistance, SMA100, and SMA200). This last level is the primary target for this cross.
Below the current price, the first support level is $0.368 (price congestion support). The second support level is $0.345 (price congestion support). The third level of support is at $0.32 (price congestion support).
The MACD in the daily range shows a very bullish profile. The averages are very separate from each other and with a robust bullish inclination. It is still moving through the negative zone of the indicator but has a run ahead of it.
The DMI in the daily range shows the bulls taking control of the situation and moving above level 20. On the other hand, the bears withdraw and run below level 20 which indicates the existence of trend force — an upward potential.
ETH/USD Daily Logarithmic Chart
ETH/USD is trading at the price level of $111.09. Ethereum has the least obstacles to the short-term upside. It is also the one that shows the slowest structural upward development.
Above the current price, the first resistance level is at $124.5 (price congestion resistance). The second resistance level is at $133.92 (EMA50). The third resistance level is at $156 (price congestion resistance).
Below the current price, the first support level is at $94.6 (price congestion support). The second support level is at $82.6 (price congestion support and long-term bear channel support). The third level of support is at $69.2 (price congestion support).
The MACD in the daily range shows the least advanced upward profile of the three assets analyzed. On the downside, it is a weakness factor, but it increases the upside potential in the medium term.)
The DMI in the daily range also reflects the less developed state of the three. The bears maintain control even though they irremediably go to meet the bulls. These current difficulties may turn into advantages in the medium term.
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