- Cryptocurrencies have been unable to extend their gains and retreated.
- Significant resistance lines imply further falls are due before things improve.
- Here are the next levels to watch according to the Confluence Detector.
Bulls must be on the beach – each time that cryptocurrencies rise – they lose momentum and slip back down. Luckily for cryptos, bears are also hard to spot – perhaps stuck in the woods.
The crypto sphere has been busy Craig Wright's legal issues and Facebook's Libra's regulatory struggles – yet there has been a dearth of considerable market-moving news.
After several limited back-and-forth moves – where next for digital assets? The path of least resistance is down according to our charts. It may probably get worse before it gets better – perhaps when August reaches its end.
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD blocked by two lines
Bitcoin is facing fierce resistance at $10,241, where a dense cluster of lines awaits it. This includes the Bollinger Band 4h-Middle, the Fibonacci 61.8% one-week, the Simple Moving Average 100-1h, the BB 15min-Upper, the SMA 10-1h, the SMA 5-one-day, the SMA 200-15m, and the previous 4h-high.
The next cap is close. At $10,400 we note the meeting point of the SMA 10-1d and the BB 1h-Upper.
Further up, $10,665 is another significant cap, where we see the convergence of the Pivot Point one-day Resistance 1, the Fibonacci 38.2% one-month, and the SMA 50-1d.
BTC/USD has weak support at $10,080, where the Fibonacci 23.6% one-month and the SMA 100-1d converge.
Further down, the granddaddy of cryptocurrencies may find support at $9,817, which is the confluence of the PP 1w-S1 and the Fibonacci 161.8% one-day.
ETH/USD struggles with $189
Ethereum has a tough line of resistance at $189, which is the juncture of several lines including the SMA 200-15m, the SMA 50-1h, the BB 4h-Middle, the Fibonacci 1.8% one-day, the Fibonacci 61.8% one-week, and the BB 1h-Upper.
ETH/USD faces further resistance leading to $193, where the convergence of the BB 4h-Upper, the PP 1d-R1, the SMA 200-1h, the SMA 50-4h, the SMA 10-1d, and the Fibonacci 23.6% one-day awaits it.
Some support awaits it at $185, where we see the confluence of the PP 1d-S1, the BB 4h-Lower, the BB 1h-Lower, and the previous 4h-low.
The next line to watch is $180, where the previous weekly low and the Fibonacci 161.8% one-day converge to provide support.
XRP/USD battles $0.2727
Significant resistance awaits Ripple at $0.2727, which is a minefield of lines including the Fibonacci 61.8% one-week, the SMA 100-1h, the Fibonacci 61.8% one-day, the SMA 200-1h, and the SMA 50-4h.
Next, XRP will need to break above $0.2783, which is the convergence of the SMA 100-4h, the Fibonacci 23.6% one-day, and the PP 1d-R1.
Support awaits at $0.2615, which is the meeting point of the PP 1d-S2 and the PP 1w-S1.
XRP/USD has more substantial support at $0.2520, where the PP 1d-S3 converges with the previous yearly low.
See all the cryptocurrency technical levels.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AI crypto coins rally ahead of ChatGPT creator OpenAI plans to announce Google search competitor on Monday
Barely before the hype around NVIDIA stock gain is over, AI crypto tokens have another bullish catalyst coming their way, which could provide more tailwinds to drive the price of the sector’s tokens.
Ethereum needs a bullish trigger, Joseph Lubin blasts the SEC
Ethereum co-founder alleges that the SEC aims to stifle innovation through its enforcement actions against Ethereum-related companies. Grayscale CEO says he's optimistic the SEC would approve its spot ETH ETF application.
Franklin Templeton declares it’s “Base Season” as the Coinbase low-cost L2 sees significant rise in activity
Franklin Templeton, an investment firm with up to $1.46 trillion in assets under management, has declared that “It’s Base Season.” It comes amid growing activity on the low-cost ETH L2 solution.
Binance fined by Canadian financial regulator over AML violations
Canada's financial regulation body, the Financial Transactions and Reports Analysis Centre (FINTRAC), has fined Binance for refusing to abide by the status quo for all foreign monetary bodies in the country, according to a report on May 9.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.