- There are massive movements rotating towards Ethereum.
- The first condition for a new bull market has been achieved.
- BTC/USD needs to close above $8,300 to trigger fireworks.
Finally, we are seeing the much-needed falls that will complete the technical cycle and allow new upward impulses in the short term. Cleaning the weak hands is always good for the market because it diminishes the sales in the subsequent attempts to break higher.
During the Asian session, BTC/USD hit a low at around $6,500. The reason for falling to this level has been the closing of the gap left by Bitcoin futures in the CME exchange a few days ago. This movement is positive in the medium term and adds strength to the pair's price structure.
The market is betting very strongly on Ethereum against Bitcoin, and as we will see below, that may be the tone for the coming weeks.
The accumulation game is underway and the capital that has been invested in Bitcoin from February until last week now flies towards Ethereum capitalizing significant profits.
ETH/BTC Daily Chart
The ETH/BTC cross is trading at the price level of 0.0325 and is once again above the main moving averages.
The impressive behavior of the pair in the last three days shows very explicitly the rotation of positions that is occurring.
Above the current price, the first resistance level is at 0.0333 (price congestion resistance), then the second resistance level is at 0.0343 (upper parallel bullish trend line). The third resistance level for the ETH/BTC pair is at 0.035 (price congestion resistance).
Below the current price, the first support level is at 0.0328 (SMA100, SMA200, and parallel base bullish trend line), then the second support level is at 0.0316 (price congestion support). The third support level is at 0.0305 (EMA50).
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The MACD on the daily chart shows a strong bullish profile, although still within the negative zone of the indicator. The transition to positive territory will cause the bullish momentum to decrease a bit in the next few days. Nevertheless, the bullish potential is high in the medium term.
The DMI on the daily chart confirms Ethereum's bullish potential against Bitcoin, with the bulls at extreme trend strength, while the bears fall to lows not seen since April.
BTC/USD Daily Chart
BTC/USD is currently trading at $7,260, rising about 10% from the session lows. The long term bearish channel ceiling has been too much for a first attempt and it now suddenly comes down to pick up fresh money that is not tempted to sell at those resistance levels.
Above the current price, the first resistance level is $7,400 (price congestion resistance), then the second level is $7,600 (price congestion resistance). The third one is $7,850 (price congestion resistance).
Below the current price, the first support level is $7,150 (price congestion support), then the second support level is $6,850 (double price congestion support). The third level of support is at the $6,500 price level (price congestion support).
The MACD on the daily chart shows a trend depletion profile, although it is still far from cutting down. It is very likely that we will see BTC/USD at $9,500 before that bearish cut.
The DMI on the daily chart shows how the bears are shooting higher and heading towards a cross with the bulls. In the event of such a cross, it should not last longer than a couple of days before relinquishing leadership back to the buyer side.
ETH/USD Daily Chart
The ETH/USD is currently trading at the $239 price level after hitting a low of $227 during the Asian session.
Above the current price, the first resistance level is at $250 (price congestion resistance), then the second resistance level is at $260 (price congestion resistance). The third resistance level for ETH/USD is $280 (price congestion resistance).
Below the current price, the first support level is at $235 (price congestion support), then the second support level is at $215 (price congestion support). LE third level support for the ETH/USD pair is at $208 (price congestion support).
The MACD on the daily chart shows a very bullish and extreme profile. It is this same mega bullish structure that causes price drops to return to more normal levels.
The DMI on the daily chart shows how bulls continue to lead clearly but with less push than in previous days. Bears react to downturns but far from questioning buyers' leadership.
XRP/USD Daily Chart
The XRP/USD cross is currently trading at the $0.38 price level after peaking at $0.47 yesterday. The short-term objective is in the dollar unit.
Above the current price, the first resistance level is $0.39 (price congestion resistance), then the second resistance level is $0.412 (price congestion resistance). The third resistance level for the XRP/USD pair is $0.43 (price congestion resistance).
Below the current price, the first support level is $0.368 (price congestion support), then the second support level is $0.345 (price congestion support). The third level of support for the XRP/USD pair is $0.335 (price congestion support).
The MACD on the daily chart shows a strong bullish profile, so upbeat that some degree of consolidation at current levels is positive.
The DMI on the daily chart shows bulls with control of the market and in an intermediate phase of the bullish development pattern. The bears react slightly to sales but without jeopardizing the dominance of the buyer side.
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