- Cryptos are experiencing a general weakness that affects the Big Three differently.
- Critical support lines are getting closer every day.
- Ripple continues to resist but may end up succumbing to general pessimism.
Yesterday was a day of constant falls in the Bitcoin that infected most of the market. Among the Big Three, the most affected was Bitcoin, hitting a session low at $6,235.
Ethereum held up quite well for most of the day, but substantial sale positions appeared at the last minute and led it to drill critical levels, marking the minimum at $202.85 and bouncing back to safer territory.
Ripple, which moved up quickly in the morning and put up with the gains for most of the day eventually made way to sellers and closed the day where it began.
According to the ETH/BTC chart, there seems to be little time left for this sleeping market before a noisy wakeup call. After yesterday’s negative tone, it is approaching an important trend line. The way this encounter plays out will surely define the tone and direction of the market at the end of the year.
The graph shows certain technical divergences since the last relative falls of Ethereum against Bitcoin: this includes a MACD in the daily cross range on the upside in the positive zone and a DMI where the bulls maintain control and are placed on an ADX bullish profile.
The BTC/USD sees in the first wind of the day a Doji of long legs, a figure of return par excellence. The small body of the figure remains at the price level of $6,260. From that level, the upward evolution has been steady to the next level of endurance at $6,294. At that level, sellers have reappeared and the price is currently quoted at $6,282.
Above the current price, the scene does not seem easy for the BTC/USD. The first resistance is at the quoted level of $6,294 (price congestion resistance). If the BTC/USD manages to pass this level, it will be presented with a complex challenge ahead.
The second resistance at the $6.369 price level and is strongly protected by the three main moving averages. The Exponential Average of 50 periods and the Simple Average of 100 periods move a bit lower, at $6,343 and $6,354 respectively.
The Simple Average of 200 periods at $6,364 just provided an extra dose of strength that is going to be difficult to pass. In case the BTC/USD can overcome this strong resistance it will have free space ahead until the third resistance at $6,492.
Below the current price, the first support is at $6,260 (support by price congestion). The second support level is the base of a side channel that has been guiding the BTC/USD price for weeks at $6,220. Very close, at the $6,209 price level, the third support level brings strength to the price zone.
Losing this last support level would bring the price directly to the $6,150 zone.
The 240-Minute MACD deepens its bearish profile. It loses inclination but maintains openness between lines. There is no sign of a possible bullish turn.
The 240-Minute DMI shows the bears losing strength and standing clearly below the ADX line. This pattern is usually a premature warning of a change in the trend but is still in the primary phase. The bulls reacted with purchases to yesterday’s movement, which shows interest in Bitcoin at these price levels.
The ETH/USD is currently trading at the price level of $206.5. It is just below the price congestion resistance level of $206.7. After yesterday’s loss of support of three moving averages, Ethereum has recovered two levels and right now the Simple Moving Averages of 100 and 200 periods are supporting the ETH/USD.
Above the current price, the first resistance at $206.7. The second resistance is at the Exponential Moving Average at $209.6. The third resistance is at $215 (price congestion resistance) and the last level the digital coin needs to beat to find free space that would lead to ETH/USD directly at $225.
Below the current price, the first support on the SMA100 and SMA200 at $206.3 and $205.06 respectively. The second support level is at $200 (price congestion support). The third level of support is at $194.6 (price congestion support) would be very close to the relative lows and the risk of new annual lows would greatly increase.
The MACD at 240-Min is moving in the negative zone of the indicator. The bearish slope is considerable and proposes the continuity of the price falls.
The DMI at 240-Min shows bears are in control, moving a good distance from the ADX line. Bulls continue to retreat and show no buying interest in the downturns.
The XRP/USD is currently trading at the $0.508 price level. Ripple remains above all moving averages. It also finds strong support at $0.505.
Above the current price, the first resistance is $0.548 (very short-term high). The second resistance awaits at $0.583 (price congestion resistance). If the XRP/USD manages to overcome this resistance level, it would definitely exit this sideline range and its target would move to a longer time frame with recent highs above $0.75.
Below the current price, the first support is at the aforementioned level of $0.505 (price congestion support and EMA50). The second support level is at $0.486 (SMA100). The third support level at $0.477 (trend line from relative lows) is the key level, as its loss would jeopardize all the hard-earned gains.
The MACD at 240-Min remains above the neutral level of the indicator but is poised to decline. This level may be lost.
The DMI at 240-Min shows an increase in bear positions as the bulls retreat. This is an adverse development in the short term. The ADX remains low, so movements can be quite limited.