- Technical divergences appear in the short term.
- This is a favorable situation for extreme movements.
- Current price levels may remain with us for a long time.
After a day of rises, today the Crypto market is weakening, and fear has reappeared among investors. Traders, live on volatility without much regard for market direction and should now be happy.
As the hours go by, it does not matter if BTC/USD trades below $4,000 or if ETH/USD is playing very close to the $100 barrier. The charts tell me they are not values that the markets see as normal. It tells me that they are showing significant divergences in time ranges below 6 hours and showing a buyer interest that the price does not reflect. It also shows that it is likely that it will take a few weeks before we can see these technical divergences in daily ranges.
Do you want to know more about my technical setup?
BTC/USD 240-Minutes.
The BCT/USD trades at the $3,639 price level. It seems that today, it can move towards the recent lows below $3,500.
Below the current price, the first support for the BTC/USD is at the level of $3,466 (annual lows). If the BTC/USD lost the yearly lows, the volatility would increase considerably. The second support level at $3,250 (price congestion support) is the last barrier you can avoid seeing King Bitcoin below $3,000. The third level of support is at $2,890 (price congestion support).
Above the current price, the first resistance for the BTC/USD is at the price level of $3,922 (price congestion resistance). The BTC/USD tested this resistance and had not managed to hold it for more than 12 hours. The second resistance is at $4,300 (EMA50 or 50-period Exponential Moving Average). A little above this price level is the third resistance level at $4,400 (price congestion resistance).
-636789105192062132.png)
The MACD at 240 Minutes shows how this indicator does not reflect each new low in the same direction. This situation is called "divergent structure" and is one of the most exciting patterns out there. It does not indicate future rises. The market can be in this situation for a long time. However, it does suggest that a part of the market believes that there is an excellent place to go buying and building a portfolio.
The DMI at 240 Minutes reinforces the idea that gives us the MACD, and we see how the bulls have been increasing activity in recent days while the bears are not as convinced as before to continue contributing to the decline.
XRP/USD 240-Minutes.
The XRP/USD trades at the $0.349 price level. Last week it lost the critical level of $0.40, and the drop has been significant. Its structure does not show divergences as the BTC/USD does.
The XRP/USD is just above the first support level at $0.3454 (price congestion support). The second support level is at $0.323 (relative lows and price congestion support). The third support level is already below $0.30, precisely at $0.2969 (price congestion support).
Above the current price, the first resistance for the XRP/USD is at the price level of $0.368 (price congestion resistance). Above that price, there is ample room on the upside until the second resistance level of $0.405 (EMA50). The third resistance level is at $0.413 (price congestion resistance).
-636789106228660576.png)
The MACD at 240 Minutes shows us a profile cut to the upside but not divergent with the price structure. Divergences are likely to appear in the next few days but will require prices below $0.32.
The DMI at 240 Minutes does show how bulls have increased activity in recent hours. The bears do not retreat and seem convinced that they can close their positions at lower price levels.
ETH/USD 240-Minutes.
The ETH/USD trades at the $105.4 price level. The trough is slightly above $100. The loss of this psychological level would trigger many protective orders in addition to many purchase orders.
The ETH/USD also shows a divergent structure between the indicators and the price.
Below the current price, the first level of support for the ETH/USD is at the price level of $94.88 (price congestion support). The second level of support is at $81.6 (price congestion support). The third level of support is at $70.00 (price congestion support).
Above the current price, the first resistance is at $124.59 (price congestion resistance). The second resistance level is at $128.5 (EMA50). If the ETH/USD exceeds the price level of this exponential moving average, it will have access to a clean space that would allow it to evolve considerably. The third resistance level is $155.37 (price congestion resistance).
-636789107074954158.png)
The MACD at 240 Minutes shows a divergent structure with the price. It is a clear sign of buyer interest. The averages are cut upwards although in the negative zone of the indicator.
The DMI at 240 Minutes shows buyers overreacting from the moment the price has approached $100. Sellers for their part withdraw and do not seem very convinced of being able to close their positions at lower levels.
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