- Bitcoin marks new minimums and it is even more extreme in its technical position.
- ETH/USD sweeps support at $100 and sets the annual minimum at $82.
- Indicators at extreme levels and significant divergences are an explosive combination.
We arrive at the end of the week, and we have the main Crypto board actors at the next level of support.
The arrival to these new support lines activated purchases that are bouncing prices at the time of writing this article.
The most sought-after answer is if the falls will stop at this level or if we are going to continue being immersed in this downward spiral.
Well, the answer from the Technical Analysis is that it is not very likely that a significant shift in trend is to happen in the next few hours. What about the next few days? If we project the developing patterns into the future, the odds are supporting a scenario in which the bearish trend is going to continue between four to seven days.
The daily chart shows clear divergences between prices and indicators. It surprises me that despite the sharp declines, the MACD in this time range has not crossed downwards.
The chart in the weekly BTC/USD range shows how the price is just above the SMA200, reliable support that in any way should be pierced. If Bitcoin breaks this simple average, we can pack our Cryptos in a secure wallet and forget them until 2020.
BTC/USD Daily Range
BTC/USD trades at the price level of $3,356, setting a fresh low during the Asian session at $3,299.73, the new benchmark level to be monitored.
The price is deviating quite a bit from moving averages. The oversold level is enormous and the desire to go up, possibly even higher. There is a good mix of strong indicators for a big rebound. The question is when not if it will happen.
Below the current price, the first support level is at the $3,299 price level (annual low and price congestion support). Under this support level, the BTC/USD would already be in a position to strike the psychological level of $3,000 and then head to the second support level at $2,880 (price congestion support). The third level of support is at $2,500 (price congestion support).
Above the current price, the first resistance level for the BTC/USD is at $3,930 (price congestion resistance). The second resistance level is at $4,400 (price congestion resistance). The third resistance level is at $4,900 (price congestion resistance and EMA50).
The MACD in the daily range is at the same levels that pointed to the end of last April’s declines. It is still far from the harmful levels reached during the massive drop from all-time highs that ended last February. The indicator is even crossed upwards in the daily range although the price falls — many signs for a potential bullish rebound.
The DMI in the daily range shows us how the bears have reached very extreme values in the last days, not even seen by the bulls during the hype of December 2017. The bulls have been increasing their level of activity to the previous days and without hardly loosening with the last falls. The bears recover confidence this week and improve their trend strength considerably.
XRP/USD Daily Range
XRP/USD trades at the $0.30 price level after hitting the day’s low of $0.292 (price congestion support). Over the past few weeks, the XRP has been performing relatively worse than the BTC or the ETH. Today it seems that there are signs of improvement, especially against Ethereum.
Below the current price, the first level of support for the XRP/USD is at the relative low of $0.292 (price congestion support). The second support level is $0.271 (price congestion support). The third support level is $0.258 (price congestion support).
Above the current price, the first resistance level is $0.322 (price congestion resistance). The second resistance level is at $0.344 (price congestion resistance) and the third at $0.369 (price congestion resistance).
The MACD in the daily range shows a mildly bearish profile but with the lines somewhat separated due to recent declines. There is no significant impact despite the magnitude of the selloff.
The DMI in the daily range shows us how the Bulls have barely retired despite the recent falls. The Bears have increased activity and set new maximum levels, even above the levels reached the September lows.
ETH/USD Daily Range
ETH/USD is currently trading at the $85.10 price level. During the first hours of the day, the ETH/USD has reached a new annual low at the $82.15 support level (price congestion support).
The structure is similar to the one we have analyzed in the BTC/USD although with the significant difference that Ethereum undermines in its cross with the Bitcoin, so it can exacerbate the price falls a little more.
Below the current price, the first level of support at the new annual lows is $82.15 (support for price congestion). The second level of support is at $69 (price congestion support). The third level of support is at the price level of $53.8 (price congestion support and long-term bear channel base).
Above the current price, the first resistance level is at $95.34 (price congestion resistance). The second resistance level is at $125 (price congestion resistance). At the third resistance level located at the $154 price level, the price congestion resistance coincides with the EMA50.
The MACD in the daily range shows a divergent profile, especially when the ETH/USD has almost no space below it to undo the formation of the bullish pattern. The lines cross slightly downwards with price falls.
The DMI in the daily range shows us Bears increasing their level of activity again in the last few days. On the other hand, the bulls do not react and remain at minimum levels, although higher than those they had at the end of November.