- XRP and Ethereum are better placed than Bitcoin to take advantage of the bullish momentum.
- The passage of time strains the situation as key levels are reached.
- Attention is warranted to a possible bearish pattern in the final stage of development in the MACD.
A new week of analysis begins on the three main actors of the Crypto board. In a quick look, it seems that we are in the same situation as on Friday, but time also plays its role and brings the technical situation closer to the decision point.
The technical indicators have narrowed even further and are now configured in such a way that it will force the price to react. However, it is difficult to know the direction of that reaction for sure.
Thousands of hours of experience in front of screens tell me that the market is looking towards higher prices, but this is just an intuition. Let’s see what the charts show us.
The ETH/BTC pair was placed early last week in a lower range within the structure of bullish parallels it entered shortly before Christmas. ETH/BTC is currently trading at the 0.031 level, just above the trend line. The next price step on the bullish side is at the 0.335 level. If the pair makes it above this level, the market will enter into the bullish mode in the medium term, and we could see significant gains.
On the other hand, the loss of the current price level at 0.031 would signal the beginning of a new downtrend in the market.
Do you want to know more about my technical setup?
BTC/USD 240 Minute Chart
The BTC/USD pair is currently trading at the $3.436 price level in a timid bullish reaction that is answered immediately with the appearance of sellers. This is a classic situation when indicators are so close. Every move meets immediate resistance. The final breakpoint is usually aggressive and with a sharp increase in volatility.
Above the current price, the first resistance level for the BTC/USD pair is at $3.447(EMA50), slightly below the first price congestion resistance level of $3.465. The SMA100 signals the second resistance level at the $3.504 price level. This moving average is halfway to the next price congestion resistance of $3,600.
Below the current price, the first support is at the $3,400 price level (price congestion support). The second support level is at $3,315 (price congestion support), while the third support level is at $3,240 (price congestion support).
The MACD on the 4-hour chart shows a flat profile, with the lines very close together and just below the zero lines of this indicator. The pattern of behavior in recent months indicates that this situation usually leads to falls in price.
The DMI in the graph of 4 hours shows an almost perfect tie between the bears and the bulls, although bears are the first ones that conserve a small advantage in front of the bulls. It seems that the bulls try to snatch the domain from the bears, but both are at trend levels so the fight can cause constant changes of direction.
ETH/USD 240 Minute Chart
The ETH/USD is currently trading at the $107.99 price level. The early morning bullish reaction has taken Ethereum to the $109 EMA50 level, but sales have appeared, and the move is over, at least for now.
Above the current price, the first resistance level at $109 (EMA50 and price congestion resistance). The second resistance zone is between the $113 price level (SMA100) and the $115 level (price congestion resistance). Above this second resistance zone, some space opens up to the third resistance level, which starts at $126 (SMA200) and ends at $130 (price congestion resistance).
Below the current price, the first level of support is at $105 (price congestion support). The second support level is at $98 (price congestion support). Finally, the third level of support is at $85 (price congestion support).
The MACD on the four-hour chart shows a profile identical to that seen in the case of Bitcoin. The lines are flat and move slightly below the zero lines of the indicator. Also as in the case of Bitcoin, the pattern of recent months indicates that this situation could be resolved with declines.
The DMI in a four-hour graph does show differences between Ethereum and Bitcoin. In the case of the ETH/USD pair, the bulls are already above the bears, so if we consolidate this change of leadership, we could see a better behavior of the ETH/USD than the BTC/USD.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.302 price level. In the early morning bullish reaction, the XRP has not reached any key level, indicating weakness and lack of conviction. In the MACD analysis, we will see why the XRP/USD needs more than any that the bullish reaction, if any, is not long delayed.
Above the current price, the first resistance level is $0.31 (EMA50 and price congestion resistance). As a complement to this resistance level, the passage of the SMA100 through the price level of $0.312 increases the difficulty of the barrier. The second resistance level is at $0.32 (price congestion resistance), while the third resistance zone is between the price level of $0.33 (SMA200) and $0.335 (price congestion resistance).
Below the current price, the first support level is $0.30 (price congestion support). The second support level is $0.296 (price congestion support). The third support level is $0.282 (price congestion support).
The MACD on the 4-hour chart shows a bearish profile that causes the zero lines of the indicator to be cut down. The lines show some opening between them, which is compatible with a bearish acceleration but would also favor a possible bullish reaction.
The DMI on the 4-hour chart shows a situation similar to the one we have seen on the ETH/USD pair. The bulls are above the level of the bears, but the advantage, for now, is not wide enough to suggest a change in the market situation.
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