- The market is a few cents away from going into full bullish mode.
- The bullish process follows the expected pattern, first XRP, then ETH.
- BTC must accept the team player role and back up the market.
We end the short Easter week of analysis with climbs along the Crypto board but especially in XRP, fulfilling the scenario I set at the beginning of the week. In Tuesday's article, I claimed the need for the XRP to take the initiative and be the trigger for a new bullish stretch in the market.
Yesterday afternoon, XRP began giving signals announcing today's move. On the daily chart, we can perfectly see the long term scenarios. The bullish scenario requires XRP to conquer and secure the $0.35 level, the roof of the long term bearish channel. Above that price level, XRP would have no significant resistance up to $0.50 price level.
The bearish scenario is currently active. The top daily price remained right in the line that exerts of the ceiling of the channel and if it does not manage to overcome and to change of scenario, the logical continuation of the current scenario would point to a trip to the underworld of $0.15.
The importance of the technical moment can be seen in the movement of the ETH/BTC pair, which has reached the upper parallel uptrend line at the same time as XRP has reached its peak. This setup is the sequence the market needs to keep moving higher.
ETH/BTC 4 Hours Chart
The ETH/BTC cross is trading at the price level of 0.0326 after hitting a daily high at 0.0329, just after contacting the upper parallel bullish trend line. The current drawing coincides with an uptrend scenario, but until it enters the upward scene, the current one remains bearish.
Above the current price, the first resistance level is at 0.0329 (parallel upper trendline), then the second resistance level is at 0.0332 (congestion resistance). The third resistance level is at 0.034 (price congestion resistance).
Below the current price, the first support level is at 0.0315 (lower parallel trendline), then the second support level is at 0.0313 (price congestion support). The third support level for the ETH/BTC pair is at 0.0301 (price congestion support).
The MACD on the 4-hour chart has taken a radical turn. The averages rotate violently upwards and get a proper bullish inclination and a wide opening between them. It still moves on the negative side of the indicator, and development is strongly linked to whether or not it exceeds crucial price levels.
The DMI on the 4-hour chart shows the bulls taking control of the situation although still below the ADX line. The bears on the other hand withdraw but even above the indicator level 20. The development in the short term is also closely linked to whether or not the key technical levels are exceeded.
BTC/USD 4 Hour Chart
The BTC/USD pair is trading at the $5.245 price level. The XRP and ETH advances have failed to pull the BTC king hard, but that is the typical behavior of this market.
Above the current price, the first resistance level is at $5,500 (price congestion resistance), then the second resistance level is between $6,300 and $6,500, a confluence of three levels of price congestion resistance. Above this robust resistance level, the price of Bitcoin could fly upwards fast.
Below the current price, the first support level is at $5,100, also a strong confluence formed by the EMA50, the SMA100, and a congestion support price. The second level of support for the BTC/USD pair is at $4,560, a confluence formed by the SMA200 and a price congestion support. The third level of support is at $4,200 (price congestion support).
Note the strength of the BTC/USD pair. If it were to pierce them downwards, the signal of weakness would be so strong that it could cause chaos in the market.
The MACD on the 4-hour chart shows a slightly inclined bullish profile with a little opening between the lines. The most likely scenario is bullish although the structure has weak points that can turn down quickly.
The DMI on the 4-hour chart shows the bulls dominating the market with quite an advantage over the bears. The bearish side of the market reacts quickly to the current small declines but continues below the ADX line.
ETH/USD 4 Hour Chart
ETH/USD is currently trading at the $171 price level, after setting a daily high at $173.9 and consolidating the supports obtained yesterday on the EMA50 and the SMA100.
Above the current price, the first resistance level is at $180 (price congestion resistance), then the second resistance level is at $190 (price congestion resistance). The third resistance level for the ETH/USD pair is at $200 (price congestion resistance).
Below the current price, the first support level is at $167 (EMA50 and SMA100), then the second support level is at $161 (price congestion support). The third level of support is at $151 with the confluence of the SMA200 and a price congestion support.
The MACD on the 4-hour chart shows a bullish and expanding profile. The indicator enters the bullish zone and is positioned to continue rising in the coming days.
The DMI on the 4-hour chart shows the bulls taking control of the market and exceeding the ADX line at the same time. It is a magnificent structure of bullish continuity, whose weak point is right now in its beginnings. If the ETH/USD pair consolidates the rises, they can be crucial.
XRP/USD 4 Hour Chart
The XRP/USD is currently trading at the $0.338 price level, leaving an ugly doji in the previous period that has to keep us on our toes.
Above the current price, the first resistance level is $0.389 (price congestion resistance). The second resistance level is at $0.39 (price congestion resistance), and the third resistance level is at $0.44 (price congestion resistance).
Below the current price, the first support level is $0.334 (price congestion support), then the second support level is $0.33, a confluence of the EMA50, the SMA200, and a price congestion support. The third level of support for the XRP/USD pair is at $0.317 (price congestion support), a level below which the XRP would enter short term bear territory.
The MACD on the 4-hour chart shows a bullish profile, with good inclination and openness between the lines. It has entered the positive zone of the indicator. The structure usually leads to a scenario of bullish continuity.
The DMI on the 4-hour chart shows the bulls with absolute control of the situation, while the bears try to react to the upside without success. The structure is strongly bullish.
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