- XRP is the candidate to lead the first movement.
- Altcoins can start warming up their engines.
- BTC must lead and sustain the market.
In today's analysis, it is worth noting that yesterday, at the close of the American session, a special event of the utmost importance took place and that seems to have gone unnoticed by the majority of the media.
The ETH/BTC pair met the expected bullish scenario and confirmed for the second time the basis of the parallel bullish trendline structure that currently governs the market. This movement, caused by Bitcoin's better performance against Ethereum, now opens up an upward development scenario, as we will see in the specific analysis of the pair.
I would also like to highlight the article published today by Binance, a leading multi-platform trading company, in which it announces that the cryptocurrency market has made ground and that, according to them, the $3,000 level will never be seen again. Well, the Technical Analysis already told us this in December as I wrote then, and whoever decided to consider those analyses, today has an average purchase price that can hardly be improved.
Technical Analysis is usually treated as the ugly brother of the Crypto family, and I consider it necessary to value the ability of specialists in this field of knowledge to provide valuable information to investors.
ETH/BTC 4 Hours Chart
The ETH/BTC is currently trading at the price level of 0.031 after setting a low of 0.031 in yesterday's session, right at the level of the lower parallel bullish trendline of the structure that governs the movement since last December.
This technical event closes the entire cycle of typical bullish market behavior and should restart it again. Now it would be the XRP's turn to retake the lead, then the Altcoins season would start again, and Bitcoin would complete the sequence again.
Above the current price, the first resistance level is at 0.0328 (upper parallel uptrend line), then the second resistance level at 0.0332 (price congestion resistance) and the third resistance level in the ETH/BTC pair is at 0.0350 (price congestion resistance).
Below the current price, the first support level is at 0.0316 (price congestion support), then the second support level is at 0.0310 (lower parallel bullish trend line). Below this support level, the scenario would change entirely and move out of the current bullish frame.
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The MACD on the 4-hour chart shows a structure that leads me to think of an imminent bullish cross, although it cannot be ruled out that the price moves through this area for a few more days, as a steep price to a new cycle of consistent rises.
The DMI on the 4-hour chart shows the bears controlling the situation. They move above the ADX line, so Ethereum's moment of weakness against Bitcoin will continue for the next few hours. Bulls run at minimum levels and should reignite soon.
Do you want to know more about my technical setup?
BTC/USD 4 Hour Chart
The BTC/USD pair is currently trading at $5,072, just below the price congestion resistance of $5,100 and the EMA50.
Above the current price, the first resistance level is at $5,100 (price congestion resistance and EMA50), then the second resistance level is at $5,500 (price congestion resistance). The third resistance level for the BTC/USD pair is a massive confluence between $6,300 and $6,500, where three price congestion resistances are located.
Below the current price, the first support level is at $4,944 (SMA100), then the second support level is at $4,550 (price congestion support and SMA200). The third level of support for the BTC/USD pair is at $4,200 (price congestion support).
The MACD on the 4-hour chart shows a flat profile with barely any opening between the lines, moving on the negative side of the indicator. It is a structure of moments of low volatility. It does not indicate probable exit directions.
The DMI on the 4-hour chart shows bears dominating the market with quite an advantage over bulls, which after drilling down the ADX line are now fighting to get above it again. The structure is conducive to sudden price movements.
ETH/USD 4 Hour Chart
The ETH/USD is currently trading at the $163.2 price level after losing support for the EMA50 and SMA100 but recovering to the $162.5 level (price congestion resistance).
Above the current price, the first resistance level is at $164 (EMA50 and SMA100), then the second resistance level is at $180 (price congestion resistance). The third resistance level for the ETH/USD pair is at $190 (price congestion resistance).
Below the current price, the first support level is at the price level of $161 (price congestion support), then the second support level is at $150 (price congestion support and SMA200). The third level of support for the ETH/USD pair is at $142.5 (price congestion support).
The MACD on the 4-hour chart shows a divergent profile with the price. It is a structure with a high probability of bullish development, but that can lengthen in time before it starts to rise.
The DMI on the 4-hour chart shows bears controlling the situation but seems unable to stay above the ADX line. The bulls, on the other hand, seem to react to the rise although they are far from being able to control the bears. Volatility is likely to increase in the next few hours.
XRP/USD 4 Hour Chart
XRP/USD is currently trading at $0.322 after finding support at $0.317 (price congestion support).
Above the current price, the first resistance level formed by a solid confluence formed by the SMA200 at $0.325, a price congestion resistance at $0.328, then the EMA50 at $0.332, a price congestion resistance at $0.335 and finally the SMA100 at $0.339. The second resistance level in the XRP/USD pair is $0.367 (price congestion resistance), then the third resistance level is $0.39 (price congestion resistance).
Below the current price, the first support level is $0.317 (price congestion support), then the second support level is $0.308 (price congestion support). The third level of support for the XRP/USD pair is $0.30 (price congestion support).
The MACD on the 4-hour chart shows a profile before a bullish cross, with divergent structure. The scenario presented at the beginning of this article bets on a first bullish movement of the XRP. The current structure supports this scenario.
The DMI in the 4-hour chart shows bears controlling the market, while the bulls try to overcome the ADX line and be able to opt to lead the pair's movement.
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