- ETH/USD would lead this process in case of success.
- We see a divergence between the price and dominant humor in social networks.
- The proximity of key supports puts medium-term performance at risk.
The session begins in Europe with timid climbs that can continue to develop in the next few hours. The daily charts show a technical development that may extend towards a change of direction in the short term.
The 4-hour charts begin to reflect this fact with minor price increases. So far, the price increases have only changed the color of the candles and painted green on the graphs for the first time in three days.
The market has plunged into a state of deep pessimism that, although not reflected in price levels, floods communication channels such as Twitter or Telegram. The surveys ask if we will see Bitcoin at $1,000 or if it will be the XRP that will disappear forever. This current of profoundly negative opinion is typical of capitulations. I don’t rule out seeing new lows in the crypto market, but I also don’t lose sight of the fact that below $3,400, BTC/USD buyers may come in force and stop a stampede.
Do you want to know more about my technical setup?
BTC/USD 240 Minute Chart
The BTC/USD pair is currently trading at the $3,721 price level after starting the day just below $3,700. The moving averages I use in my analysis are all inclined to the upside, which clearly shows that there is a divergence between deep pessimism and positive indicators.
Above the current price, the first resistance level for the BTC/USD pair is at $3,784 (EMA50), then the second resistance level is at $3,825 (SMA100). The third resistance level is at $3,900 (price congestion resistance).
Below the current price, the first support level for BTC/USD is at the price level of $3,690 (price congestion support), a level that is reinforced by the presence of the SMA200 slightly below $3,660 price level. This last support level is critical and piercing it could lead to a massive sale among short term investors.
The MACD on the 4-hour chart shows how the bullish turn arrives at the cross point, which can increase volatility and help accelerate price action.
The DMI on the 4-hour chart shows how bulls react to bullish momentum while bears pierce down the ADX, lose the bullish momentum and enter into an indefinite sideways dynamic.
ETH/USD 240 Minute Chart
The ETH/USD is currently trading at the $129.39 price level, moving very close to the first resistance level of $131 (price congestion resistance). The ETH/USD found support in the last few hours around the SMA200 at the $126.5 price level.
Above the current price, the second resistance level for ETH/USD is at the price level of $134.2 (EMA50), while the third resistance level is at $140 (SMA200), very close to a critical resistance level of $142 (price congestion resistance).
Below the current price, the first support level for the ETH/USD pair is at $126.8. This support level is the most critical cushion in the short term for Ethereum and to drill it downwards would change the scenario in the short-term. In that new bearish scenario, the second support level is at the $120 price level (price congestion support), and the third support level is at $115 (price congestion support).
The MACD on the 4-hour chart already shows a bullish cut profile, a cut that draws a divergence with the price and adds bullish potential to the ETH/USD pair. If Ethereum can free itself from the first resistance, the price can rise sharply.
The DMI on the 4-hour chart shows the bulls increasing their trend strength but still far from the level at which the bears are moving, which is what they are leading at the moment.
XRP/USD 240 Minute Chart
XRP/USD is currently trading at $0.31, having reached the SMA200 at $0.3109.
Above the current price, the second resistance level for XRP/USD is $0.314 (EMA50), then the third resistance level is at $0.317 (congestion resistance), a level reinforced by the presence of the SMA100 at the $0.318 price level.
Below the current price, the first support level for the ETH/USD pair is at $0.305 (price congestion support), then the second support level is at the price level of $0.30 (price congestion support), and the third support level is at $0.293 (price congestion support).
The MACD on the 4-hour chart shows a profile that will face a bullish cut in the next few hours, which could increase volatility today. In the case of the XRP/USD, the structure is not divergent as in the case of the Ethereum.
The DMI on the 4-hour chart shows the bulls about to breach the 20 levels of the indicator, indicating the existence of trend strength. The bears, on the other hand, decrease their power although they continue to maintain control of the moment.
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