- It’s Bitcoin’s turn while the Ethereum takes a breather.
- Three weeks of rising have exhausted Ether’s move in the short term.
- XRP remains at $0.37 without the strength to follow the market.
We begin the weekly review of the three main cryptocurrencies of the Crypto board. After several weeks in which Ethereum has been leading the market, Bitcoin takes the baton.
On several occasions, I have expressed the need for Ethereum to play its role as a necessary collaborator to see a bullish market. For now, the leader of the Altcoins has begun to play his part.
The ETH/BTC pair reached the level of 0.041yesterday (price congestion resistance) drawing on the daily chart a figure that is being effective. The direct consequence has been a transfer of capital from Ethereum to Bitcoin that has allowed the King to rise more than 5% yesterday.
BTC/USD Daily Chart
BTC/USD trades at the $4,013 price level after setting a high of $4,005 yesterday. The retracement moves Bitcoin away from the $4,389 level (price congestion resistance), which is the first level to overcome before considering any bullish scenario.
Above this first resistance is the bearish trend line that has governed the market throughout 2018. Exceeding this second price level would place the BTC/USD on the positive side of the trend line, but would not change the overall bearish profile. BTC/USD needs to exceed $5,874 (price congestion resistance and long-term bearish trendline) to consider a general change in trend.
Below the current price, BTC/USD is left with very little help in case strong sales appear. It has only two significant support levels that separate it from entering a free-fall mode. The first support level is at $3,590 (price congestion support). The second support level is at $3,273 (price congestion support and 2018 lows).
Below this level, BTC/USD would go into free fall again and set the course for levels around $2,000.
The MACD in the daily range appears to be slightly bullish. The line spacing has decreased just as we reach the indicator’s zero lines, a typical pattern that should prepare us for increased volatility and a possible bearish rejection scenario.
The DMI in the daily range shows us that the bulls are taking control of the situation. They are above the ADX line and also above the 20 levels of this indicator. The setup is statistically bullish, but I am cautious due to the previous strong bearish trend.
ETH/USD Daily Chart
ETH/USD is currently trading at $153.90, after setting a relative high at $163.74 (price congestion resistance) yesterday. The time to consolidate the 80 % price increase from the 2018 lows has come. In the medium and long-term, ETH/USD continues to be strongly bullish.
Above the current price, the first target is $170(price congestion resistance). The second resistance level is $180 (price congestion resistance). The third resistance level is at $190(price congestion resistance). In the medium term, the critical level to exceed is $260 (price congestion resistance and SMA200).
ETH/USD does not enjoy better support levels than BTC/USD despite that %80 gain from lows.
Below the current price, the first support level is at$142 (price congestion support). The second support level is at $125 (price congestion support). The third level of support is at $95 (price congestion support).
The MACD in the daily range shows a clear exhaustion profile after three consecutive weeks of increases. The bullish slope decreases and is likely to be lost this week. The distance between the lines continues to be substantial, so we should not rule out a significant upward movement.
The DMI in the daily range shows the bulls are at high levels and maintain a safe distance from the bears, that continue to have little confidence in their strength and continue to decrease in intensity.
XRP/USD Daily Chart
The XRP/USD is currently trading at the $0.3684price level. Of the three main players on the Crypto board, Ripple has shown the most weakness in recent weeks. XRP/USD has moved sideways at around $0.37 for over two weeks.
Above the current price, the first resistance level is at $0.3758 (EMA 50), being the only obstacle to the second resistance level at the price level of $0.4129(congestion resistance and SMA100). The third resistance level is at $0.4224 (SMA200), slightly below the long-term bearish trend line passing through the $0.44 price level. Above this price level, we could move from the current bearish scenario to a bullish side one in the medium term.
Below the current price, the first support level is $0.345 (price congestion support). If the XRP/USD were to lose this support level, the drop to the second support level at $0.32 (price congestion support) could be quick. The third support level is $0.297 (price congestion support).
The MACD on the daily chart shows very horizontal lines that are very close together. It is a profile that indicates the lack of strength that the XRP/USD currently has. The positive data comes from the fact that the lines are still above the zero lines.
The DMI in the daily range shows that the bulls command an advantage over the bears, although neither side of the market has changed its trend level in the last week. XRP/USD shows considerable levels of indecision.