Market Overview

Wrong Footed Cryptomarket Consolidation Sowing Doubts To The Short-Sighted

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  • The three main cryptocurrencies are experiencing different phases.
  • The most advanced is the XRP, so it should give the sign of a bullish breakout.
  • Bitcoin may need a few more days to complete its consolidation.

Yesterday was a day of price falls in an environment of consolidation around the support levels conquered in the previous days. Like an overboard sailor clings to a single board floating in the middle of the ocean, so desperate are the charts in the last few hours.

In my opinion, there is more drama on the stage than a real risk of seeing our protagonists sink into the depths.

To give an epic face to history, the SEC announced a review of applications by VanEck and the CBOE. Bitcoin ETF returns to the decision process with a deadline in the next 45 days. This statement will undoubtedly support the price in the next two months.

BTC/USD 240 Minute Chart

The BTC/USD pair is currently trading at the $3.925 price level while continuing to postpone the inevitable encounter with $4,000. The critical resistance level is slightly higher at $4,050 (price congestion resistance).

Above this price level, the second resistance level is at $4,200 (price congestion resistance), while to reach the third resistance level, at $4,580, (price congestion resistance) there is a bullish hole that can bring much volatility to the market.

Below the current price, the first support level is $3,900 (price congestion support), while the second support level is the exponential average of 50 periods at $3,780. The third support level is at $3,690 (price congestion support).

btc_usd_87-636864288102796131.png

The MACD on the 4-hour chart shows a relatively flat retracement profile. It remains on the bullish side of the indicator with a little opening between the lines.

The DMI on the 4-hour chart shows both bears and bulls maintaining levels in the last two days. Yesterday, both sides of the market diminished in intensity, which could translate into certain tiredness in the face of the prolonged recession.

ETH/USD 240 Minute Chart

The ETH/USD pair is currently trading at the $148 price level, continuing within the consolidation range between the $142 price congestion support and the $150.5 resistance level (price congestion resistance).

If Ethereum manages to break higher, the next resistance level is at $162 (price congestion resistance), then at $170 (price congestion resistance), it would reach halfway to the outstanding price congestion resistance at $260, a level from which Ethereum’s price could see significant increases.

Conversely, if it breaks below the consolidation level, the first support level is the EMA50 at $137.5 (price congestion support), then the next is at $130 (price congestion support) and as the third support level the SMA100 at the $125 price level.

eth_usd_71-636864289771618029.png

The MACD on the 4-hour chart shows a profile with a development that could go beyond the timeframe seen on Bitcoin. In the case of Ethereum, it tried the bullish crossing of the lines looking for a bullish extension but failed. Now it continues in a slight lateral downtrend waiting for the market to align itself and enough money to appear to allow a bullish break.

The DMI on the 4-hour chart shows the bears increasing their strength in the last few hours while the bulls retreat. Nevertheless, they retain quite an advantage over those on the selling side.

XRP/USD 240 Minute Chart

The XRP/USD is currently trading at the $0.322 price level after relying on the EMA50 in Asian trading hours.  XRP has strong support at the $0.32 as the exponential average and price congestion support coincide.

Above the current price, the first resistance is $0.328 (price congestion resistance), then at $0.335 (price congestion resistance) and as a third target level, price congestion resistance at $0.34.

Below the current price, the XRP/USD pair enjoys two strong supports. The first, previously mentioned, is $0.32, followed by even stronger support at $0.308 where the SMA100, the SMA200, and a congestion support price come together. In the unlikely event that the XRP would drill down to this level, support at the psychological level of $0.30 would provide guarantees of resistance.

xrp_usd_76-636864290138356365.png

The MACD on the 4-hour chart clearly shows the aggressiveness of the XRP recoil. It almost reaches the zero level of the indicator, and it does it with the lines well opened. When it turns upwards, it will probably do so with violence as well.

The DMI on the 4-hour chart also shows this aggressiveness in consolidation, and the two sides of the market are practically equal, with the typical volatility of bear and bull encounters likely to appear in the next few hours.

Posted-In: BitcoinCryptocurrency Fintech News Forex Global Markets General

 

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