- Facebook's counterfeit decision makes the Asian giant's regulators uncomfortable.
- Ethereum and XRP move to the limit of judicious consolidation.
- Bitcoin continues to tighten and increases pressure on price.
Today we have learned, thanks to the question of a German parliamentarian, the composition of the basket of currencies that will support Libra – the stable coin promoted by Facebook.
The distribution leaves the US Dollar with 50% of the quota, followed by the Euro with 18%, the Japanese Yen with 14%, Pound Sterling with 11% and the Singapore Dollar with 7%.
The absence of the Yuan is noticeable. The veto on the Chinese currency was one of the conditions underlined by American legislators. The National Bank of China has commented that the exclusion of the Yuan endangers financial stability since it artificially perpetuates the preponderance of the American currency.
Bakkt's debut and its Bitcoin futures platform Bitcoin were rather sad as it handled only around 30 contracts.
The crypto market didn't help the volume increase, and it moved in a very narrow range for much of the day. Late in the European session, sales appeared, and the consolidation process continued.
Bitcoin slipped below $10,000 and went straight to the congestion support price at $9,700. Ethereum is the one that suffered more, losing the support of the simple moving average of 100 periods and the $200 level.
ETH/BTC Daily Chart
The ETH/BTC cross trades at 0.02035 and continues to retreat from the top it found in the 100-period simple moving average. It looks like this consolidation move is going to take a few more days.
Above the current price, the first resistance level is at 0.0213, then the second at 0.02285 and the third one at 0.025.
Below the current price, the first support level is at 0.0201, then the second at 0.0195 and the third one at 0.0186.
The MACD on the daily chart shows a loss of bullish inclination although much of the opening between the lines remains. The current structure proposes laterality with bearish touches for the next few days.
The DMI on the daily chart shows bulls dominating the ETH/BTC pair. The buyer side, represented by the DI+, is just above the ADX line. If it finds support, we can see a bullish rebound. If, on the other hand, it loses that level of support, the falls may accelerate.
BTC/USD Daily Chart
BTC/USD is currently trading at $9,722 and is the only component of the Top 3 that is now in the green. Bitcoin narrows its daily range more and more and increases the chances of an explosive exit.
Above the current price, the first resistance level is at $10,250, then the second at $10,650 and the third one at $11,250.
Below the current price, the first support level is at $9,700, then the second at $9,150 and the third one at $8,850
The MACD on the daily chart continues to cross downward but with little inclination or openness between the lines. As the indicator stands, it would be straightforward to turn it around.
The DMI on the daily chart shows how the bears control BTC/USD while the bulls do not have any confidence in a possible recovery in the short term.
ETH/USD Daily Chart
ETH/USD is currently trading at $197.64 after losing the psychological support of $200. The 50-period exponential moving average supports the price.
Above the current price, the first resistance level at $208, then the second at $215 and the third one at $225.
Below the current price, the first support level is at $195, then the second at $190 and the third one at $180.
The MACD on the daily chart continues to cross bullish but with a minimum distance to a possible bearish cross. There is likely to be a rebound to the upside in the next few days, although it is not possible to know the further development.
The DMI on the daily chart shows bulls with a slight advantage over bears. The bullish side continues to signal an ongoing trend, but the bears react to the upside and come very close to the cross-level with the buyer side.
XRP/USD Daily Chart
XRP/USD is currently trading at $0.268 and is losing most of last week's gains. XRP doesn't have much more room to fall if it doesn't want to miss all its bullish potential.
Above the current price, the first resistance level is at $0.271, then the second at $0.282 and the third one at $0.288.
Below the current price, the first support level is at $0.26, then the second at $0.258 and the third one at $0.253.
The MACD on the daily chart shows a flat profile and virtually no opening between the lines. The averages move on the bullish side of the indicator, resulting in a bullish lateral structure.
The DMI on the daily chart shows the advantage of bulls over bears. Bears react quickly to price declines, which could indicate that they expect to see new lows rather than new relative highs.
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