Cryptocurrencies Accelerate Fall; Market Still Looking for the Floor

  • BTC/USD accelerates decline, targeting $8,400.
  • Ethereum can do better than Bitcoin in the next few days.
  • The attack on Libra by regulators is an excuse to keep falling.

The crypto market is in trouble under  strong pressure from U.S. lawmakers against Facebook.

The social media company’s “Libra” arouses a lot of misgivings between the old economy and its legislators.

Both President Trump and Treasury Secretary Steven Mnuchin have claimed the position of the U.S. Dollar as the only reserve currency on a global scale.

The financial sector is the most powerful in the world because of the strong relationships between the industry and the high political and regulatory bodies. And it will not easily let in new players, let alone such powerful ones.

This concern is widespread in the crypto ecosystem and a clear justification for the sharp falls of the last two days.

The impact of the fall is being generalized but is especially punishing the altcoin segment.

The ETH/BTC pair is reaching record lows in many months.

ETH/BTC Daily Chart

The ETH/BTC pair is currently trading at the 0.0213 level and bounces back slightly after reaching the 0.020 price congestion support. The chart does not leave much room to continue to fall without leading to a very long-term possible recovery.

Below the above support level of 0.020 (price congestion support), there is a second price congestion support of 0.0153 (price congestion support). The danger below this level is enormous, as it could take the relationship between Ethereum and Bitcoin to an insurmountable extreme.

Above the current price, the scene is the opposite. It’s all to recover. The first resistance level is at 0.0228 (price congestion resistance), then the second at 0.0268 (EMA50 and double price congestion resistance) and the third one at 0.0293 (SMA100 and price congestion resistance).

The MACD on the daily chart shows a possible change of trend in development. It is just an insinuation as the lines flatten out, but it needs to be watched closely if it becomes a reality.

The DMI on the daily chart shows an extreme situation, with bulls at very low levels while bears go to very high levels, not seen since last April.

Short-term target: 0.027

BTC/USD Daily Chart

The BTC/USD pair is currently trading at the $9,527 price level, after losing the $10,000 level yesterday with a massive sale that left $1,000 of value in just 60 minutes.

Below the current price, the first level of support is at $9,150 (price congestion support), then the second at $8,800 (price congestion support) and the third one at $8,379 (price congestion support).

Above the current price, the first resistance level is at $9,690 (price congestion resistance and EMA50), then the second at $10,673 (price co-management resistance) and the third one at $11,280 (price congestion resistance).

The MACD on the daily chart shows a slope and openness between the lines confirming that the declines will continue in the short term.

The DMI on the daily chart shows the bears above the bulls, but without getting past the ADX line. This last detail weakens the bearish strength, although it is very likely that the bearish will manage to take their side of the indicator above the line indicating the trend strength.

Short-term target: $8,400

ETH/USD Daily Chart

ETH/USD is trading at the $203.6 price level and recovers the psychological level of $200. The price stopped at $190 (congestion support), leaving the SMA200 at $185 for the next few hours. It is very difficult to get so close to such an important moving average without touching it.

Below the current price, the first level of support is at $200 (price congestion support), then the second at $195 (price congestion support) and the third one at $190 (price congestion support).

Above the current price, the first level of resistance is at $207 (price congestion resistance), then the second at $215 (price congestion resistance) and the third one at $223 (price congestion resistance).

The MACD on the daily chart shows that the bearish trend will continue without a shadow of a doubt.

The DMI on the daily chart shows bears perfectly configured to continue to dominate the pair in the coming sessions. Bulls move at levels not seen since last December.

Short-term target: $180

XRP/USD Daily Chart

The XRP/USD pair is currently trading at the $0.297 price level after reaching $0.283 yesterday. The resistance of the XRP to follow the bullish market is offset by good resistance in a bearish market as well. A very interesting stability message for all those who have bought below $0.40.

Below the current price, the first support level is at $0.296 (price congestion support), then the second at $0.293 (price congestion support) and the third one at $0.288 (price congestion support).

Above the current price, the first resistance level is at $0.308 (price congestion resistance), then the second at $0.32 (double price congestion resistance) and the third one at $0.328 (price congestion resistance).

The MACD on the daily chart shows a profile that tends to flatten but with some downward trajectory.

The DMI on the daily chart shows bears about to cut down the ADX. If so, they will initiate a pattern that will lead to a change in trend. Bulls go to minimum levels not seen in many months, which also favors a change of trend.

Short-term target: $0.283

Featured image courtesy of Shutterstock.