- The resistance to falls shows an extremely bullish under market.
- The market is still in the early stages of a future bull trend.
- XRP remains fully configured upwards.
Another week begins, and the Crypto Market is still trying to find a way to trigger the next bullish movement. As signaling the patterns of previous bull markets, it is necessary that the Ethereum performs better than Bitcoin to see a new bullish trend.
The past week Hans Hauge - Ikigai Senior Quantitative Researcher - published an interesting report showing new tools to measure the real stage of the market. This study shows that, amid the strong movement from December lows, the crypto market is still in the accumulation phase.
The attractiveness of the price of Bitcoin today could be evaluated as the cost to buy Bitcoin today relative to the sum total of confidence built over time. If confidence is high and the price is low, then essentially the risk/reward is skewed attractively. Likewise, if the price is high and confidence is low, the risk/reward is skewed unattractively.
SOURCE DATA: BLOCKCHAIR.COM, BLOCKCHAIN.COM
At the moment the market seems to want to start a new bearish stretch, which would fit with a third corrective wave - C wave-.
The supports are well defined as we will see in the pair analysis.
ETH/BTC Daily Chart
The ETH/BTC continues to show worrisome weakness and remains below the main moving averages.
The pair is trading at 0.0308, a level it has been unable to move away from for more than a week. Above the current price, the first resistance level is at 0.0310 (EMA50), then the second resistance level is at 0.0316 (price congestion resistance and parallel upper trendline). The third resistance level for the ETH/BTC pair is at 0.0322 (SMA100 and SMA200).
Below the current price, the first support level is at 0.030 (price congestion support and lower parallel trendline), then the second support level is at 0.029 (price congestion support). The third support level for the ETH/BTC pair is at 0.0275 (price congestion support).
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The MACD on the daily chart shows a lateral bearish structure but clearly in the bullish zone of the indicator. This underlying bullish potential could be activated at the slightest hint of bullishness.
The DMI on the daily chart shows that despite a 10% drop from relative highs, bulls continue to dominate the market. The bears, on the other hand, increase the level of activity a little bit far from levels considered an ongoing trend.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at the $8,494 price level.
Sales started a few minutes ago have taken the price to the first support level at $8,350 (price congestion support). The second support level is essential for the BTC/USD pair and is located at $8,250 (price congestion support and long term parallel upper channel bearish line). If you drill down this support level, you will have to activate a new medium-term bearish scenario. The third level of support is at $8,000 (price congestion support).
Above the current price, the first resistance level is at $8,750 (price congestion resistance), then the second resistance level is at $9,200 (price congestion resistance and relative maximum). The third resistance level for the BTC/USD pair is $9,600 (price congestion resistance).
The MACD on the daily chart shows a bearish cross profile while remaining in an extremely bullish area of the indicator. The most likely scenario is one of continued bullishness in a permanent overbought situation.
The DMI on the daily chart shows how bulls lead the BTC/USD pair but with less and less advantage over bears. The selling side of the market increases its activity and seems determined to discuss leadership.
ETH/USD Daily Chart
The ETH/USD pair is currently trading at the $262.4 price level. The early morning bearish reaction has not impacted much on the Ethereum, which remains within the same price range.
Below the current price, the first support level is $260 (price congestion support), then the second support level is $250 (price congestion support). The third level of support for the ETH/USD pair is at $238 (price congestion support).
Above the current price, the first resistance level is at $290 (price congestion resistance), then the second resistance level is at $308 (price congestion resistance). The third resistance level for the ETH/USD pair is at $318 (price congestion resistance).
The MACD on the daily chart shows a bearish cross profile, albeit within the bullish zone of the indicator. The price does not reflect the bearish pattern, so we must take into account a scenario of bullish continuity in overbought mode.
The DMI on the daily chart shows how in recent hours the bulls have lost much of their advantage over the bears. A meeting between both sides of the market could take place at the end of the current week.
XRP/USD Daily Chart
The XRP/USD is currently trading at the $0.44 price level.
Below the current price, the first support level is $0.43 (price congestion support), then the second support level is $0.412 (price congestion support). The third support level is $0.39 (price congestion support).
Above the current price, the first resistance level is $0.47 (price congestion resistance), then the second resistance level is $0.505 (price congestion resistance). The third resistance level for the XRP/USD pair is $0.528 (price congestion resistance).
The MACD on the daily chart shows extreme resistance to crossing down, a situation that is rare when market leaders have succumbed in this regard. The underlying strength is very bullish.
The DMI on the daily chart shows bulls increasing the distance from bears. The selling side does not trust at all that the overall weakness will end up affecting the XRP and moves at minimum levels. Again, this confirms a great bullish potential.
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