- Radical movements seek the latest offers in the market.
- The market consolidates medium-term bullish channels.
- The idea of a bullish year is gradually gaining traction.
This is the penultimate day of the work week and European session begins with generalized recoveries after the sudden falls seen yesterday at the close of the American session.
At the moment, the reason for the falls remains unclear from an exclusively technical point of view as yesterday saw a typical squeeze before a price movement in the opposite direction.
This type of movement generates sudden strong anxiety among traders, who often end up selling at the level of maximum emotional intensity, or the lowest price level. Experience shows that this kind of radical movement is followed by a sharp pullback that opens a suitable decision window to evaluate and, in any case, sell at a better price or maintain the position.
Emotional training is the most important factor in achieving a successful trading career. Finding professionals willing to teach this precious asset and how to manage it is difficult and like all mentoring and coaching work, it is usually quite expensive. However, if you find an opportunity to do this exercise in the hands of a proven professional, it will be the best dollars invested, for your trading and your life.
The news of the day is the launch of Constantinople, a fork of the Ethereum network without unfolding into another token and which is not expected to generate instability in the market. I believe that Ethereum has already priced in the effect of the upgrade at the beginning of the year and that only a failure in the implementation could cause price falls.
BTC/USD 240 Minute Chart
BTC/USD is trading at the $3.826 price level and is trying to break up the 50-period exponential average at $3.828. If it achieves a close above this level, the odds of a sharp price rise are very high.
Above the current price, the first resistance level apart from the exponential average is at $3,900 (price congestion resistance), then the second at $4,050 (price congestion resistance) and the third resistance level is in a narrow range between $4,200 (price congestion resistance) and $4,250 (short term bullish channel ceiling).
Below the current price, the first support level for the BTC/USD pair is at $3,764 (SMA100), then the second is at $3,700 (price congestion support) and the third support level is at $3,600 (price congestion support and SMA200).
The MACD in the 4-hour range shows a cross-profile bullish initial phase. With this setting of moving averages, sudden price falls are possible without losing the upbeat component, and only a price confirmation will dictate the development of the bullish potential.
The DMI in the 4-hour range shows how the bulls got scared at the lows and crossed down to level 20, which is negative in the short term. On the other hand, the bears were pushed higher and are in an excellent position to continue controlling the price in the next few hours.
ETH/USD 240 Minute Chart
ETH/USD is currently trading at the $138.5 price level after moving close to the $125 level at yesterday's lows. Luckily, it managed to close above the SMA100 and regain the price range of the last few days.
Above the current price, the first resistance level for the ETH/USD is at $140 (EMA50), then the second resistance level is at $142.5 (price congestion resistance), and the third resistance level is at $151 (price congestion resistance). The top of the bullish channel is at $170.
Below the current price, the first support is at the price level of $136.6 (SMA100), then the second support level at $130.5 (price congestion support) and the third support level at $123.3 (SMA200).
The MACD in the 4-hour range is identical to the one I analyzed in the BTC/USD pair. The averages point to the upside in an early phase. It is possible to see price falls even if you keep the bullish profile — accumulation phase.
The DMI in the range of 4 hours is different from the one seen in the Bitcoin. The bulls retreated to yesterday's lows but recovered immediately taking advantage of the reasonable prices. The bears rose quickly with the falls, but something shouldn't have convinced them because they promptly fell again.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.315 price level, just above the SMA100. Yesterday's squeeze brought it close to the $0.30 price level.
Above the current price, the first resistance level for the XRP/USD pair is $0.317 (price congestion resistance), then the second resistance is $0.3189 (EMA50), and the third resistance level is $0.328 (price congestion resistance).
Below the current price, the first support level for the XRP/USD pair is $0.315 (SMA100), then the second support level is $0.309 (price congestion support and SMA200). The third support level is at the $0.30 price level (price congestion support and bullish channel baseline).
The MACD on the 4-hour chart shows a bearish cross moving just below the indicator's zero levels. This setup will bring weakness to XRP, at least until it manages to cross up and enter the bullish zone of the index.
The DMI on the 4-hour chart shows how at yesterday's lows the bulls barely diminished their strength, convinced of the buying level. The bears did react and increased activity, but they withdrew very quickly when they saw that the lows were not consolidating. No one wants to get caught with bearish positions right now.
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