Market Consolidates the Bullish Turn for Bitcoin, Ethereum and Ripple
- After two days of Ethereum leading the market, today Bitcoin must contribute its part of the job.
- The ETH/USD and XRP/USD consolidate and show some degree of depletion in the short term.
- This is a typical market phase that is looking for weak hands making minimal gains at the first setback.
We have reached the middle of the week and the crypto market keeps the bullish tone. At the beginning of the European session, the main players seem to be attracting purchases again after the Asian session marked by consolidation movements.
The Ethereum price today gives the lead to Bitcoin after yesterday surpassing the previous high at 0.0336 ETH/BTC, which is the current price level.
Ripple, for its part, tried yesterday to exceed the level of $0.55 but sales appeared and they are likely to consume most of the day consolidating the recent increases.
Speaking about the cryptocurrency of Ripple Labs, several comments appeared today that tie the value of the XRP with the evolution of sales in the company from California in the coming months. I don’t see the point unless it is openly accepted that the XRP is at stake with the company and that sooner or later regulators will enforce securitization. Eventually, it can be a big business case but it is clear that this duality will not be allowed to continue for long.
The BTC/USD is currently trading at the price level of $6,515.24, consolidating above the resistance, that now turned to a support at $6,492. The next resistance is at the price level of $6,563 (price congestion resistance). This level is technically important because from this price level the Bitcoin can rise almost unhindered to $6,757.
Below the current price, the first support is at the price level of $6,492 (support for price congestion). The next support zone is very strong and it stands at $6,400, where the exponential average of 50 periods and the simple average of 100 and 200 periods are converging. The third level of support for the BTC/USD is at $6,367 being the possible limit of falls without completely undoing the current bullish scenario.
The MACD at 240-minutes chart shows a clear bullish profile but close to a short-term exhaustion. The indicators for the longer time frames are evolving in scenarios of the beginning of an uptrend and it is normal that there is some opposition.
The DMI at 240-minutes shows bulls with BTC/USD control, while bears go to multi-week lows. The level of activity of the bears is so low, that it is very easy for short-term sales to appear.
The ETH/USD is currently trading at the price level of $221.13. Ethereum has twice tried to break the resistance at the price level of $223.16 (price congestion resistance) and has failed to do so for now. Failure to do so is a sign of weakness and Ethereum’s sales would easily appear. This resistance level is important for the ETH/USD as exceeding it would allow it to reach the $235 price level without any problems.
Below the current price, the first support for the ETH/USD is at the $215 price level (price congestion support). Second support is at $207 representing a convergence of a 50-period exponential moving average (EMA) and a 200-day simple moving average (SMA), where the price has stopped many times. The limit level on the downside is $202.5, where the 100-period SMA is located protecting the current bullish scenario.
The MACD at 240-minutes shows a similar profile as the BTC/USD. A fully bullish profile is already at the advanced stage that may lead to the emergence of a consolidation phase towards the end of the week.
The DMI at 240-minutes shows less strength than the Bitcoin. The fact that the Ethereum has done better than the Bitcoin in the previous sessions makes it rather an exhaustion scenario in the short term.
The XRP/USD is currently trading at the $0.533 price level after two attempts to break above the $0.548 price level. At this time there are weak sales in the Ripple, although I don’t expect the price drops to be significant.
Above the current price, the first resistance lies at the already mentioned level of $0.548 (price congestion resistance). The second resistance is at $0.583 from where it would be easy for the Ripple to reach unhindered the third resistance level at $0.60.
Below the current price, the first reliable support at the $0.505 price level (price congestion support). The second support level is already below $0.50, exactly at $0.475 where the bullish trend line governing the XRP/USD passes since July.
The MACD at 240-minutes shows a horizontal profile that reflects the current weakness. The amplitude between the lines allows thinking that the weakness is temporary and that the XRP/USD will resume the bullish movement afterward.
The DMI at 240-minutes shows bulls being well above the bears. If the ETH/USD shows exhaustion after leading the market up a couple of days, the case of the XRP/USD is much clearer. The ADX is at very high levels and it wouldn’t hurt to reach lower levels so that the bulls could cross up again.
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