- The crypto board fires upwards but is still far from changing to a bullish scenario.
- The bulls elevate their activity to levels not seen since last April.
- Ripple reactivates and shows enviable upwards potential.
The week begins with a first-hour bullish surprise that has helped us to start the week with maximum attention.
In the first move, prices have gone to the key resistance zones. During market opening hours in Europe, prices dropped considerably and quickly. This announced increase in volatility may be with us for the next few days.
From a structural technical point of view, the Ethereum loses momentum against Bitcoin and continues without assuming a leadership that, statistically, is necessary for us to see a consistent bull market.
The BTC/USD at 240-Min is currently trading at the $6,450 price level, reversing already more than 50 percent of the upward movement that has left the high at $6,783. The retracement brings the BTC/USD back to the SMA200 and SMA100 levels. If the price stops here the upside potential would remain, but if it continues to fall the signal would be negative and at any time strong winds could appear.
Above the current price, the first goal for Bitcoin would be to stabilize above the SMA200 at the $6,479 price level. Above this price, the resistance at $6,561 (resistance to price congestion). This resistance has been ignored both up and down this morning, but we must keep it in mind.
The BTC/USD needs to confirm the bullish mode in the medium term to exceed, first, the $6,757 (resistance by price congestion) and secondly the $6.850 (resistance by price congestion and maximum level of the range that contains the BTC/USD since early September).
Below the current price, first support at the price level of $6,463 (SMA100). If the BTC/USD falls below this important moving average we should be cautious about the possible emergence of mass sales. The next support level at $6,339 (EMA50) would already be critical. Lower in the price scale the third support would be $6,200 (support for price congestion and range floor). If the BTC/USD were to lose this level, the lateral scenario would be canceled and it would go directly into bearish mode without any doubt.
The MACD at 240-Min does not show the violence of this morning’s movement. It recovers bullish inclination and openness between lines, but its situation still below the zero line tells us how premature it would be to draw bullish conclusions today. It is going to require more time.
The DMI at 240-Min, on the other hand, is a perfect reflection of the strong upward movement. The bulls shoot upwards with forcefulness, send the bears below the zero line and also drag with them the ADX. This configuration gives the possibility of upward continuity.
The ETH/USD is currently trading at the $215.26 price level. Early in the European session, the Ether left the price level against the U.S. currency at $232.34, the highest level in the range.
As in the case of the BTC/USD, sales have appeared at those price levels, although the ETH/USD has been more affected because it has returned below the main moving averages. The Ether continues to show weakness at key moments.
Above the current price, the ETH/USD’s first challenge is to recover the SMA200 at $217.66 and the SMA100 at $218.76. Doing so could give more confidence to the European early morning movement, but while this is not the case, a lot of caution. Next bullish target at the price level of $223.46 (price congestion resistance). If the ETH/USD exceeded today’s highs, the situation would be reversed and the bullish signal would be very strong.
Below the current price, first support at the price level of $208.40 (EMA50). This support level is critical in the short term. It should not be lost in any case. As a second support the $195 range floor level. Below, cancellation of the sideways scenario and entry into a strong bearish mode.
The MACD at 240-Min is similar to that of the BTC/USD. It does not capture the amplitude of the movement although it does improve in its bullish potential. Its situation below the 0 level of the indicator weakens the momentum.
The DMI at 240-Min does, in this case, reflect the strength of the bullish movement. Bulls will dip to levels not seen since last April. The bears decrease activity intensely and are slightly below the 20 level. The ADX accompanies and can enhance the bullish continuity.
The XRP/USD is currently trading at the $0.453 price level. It leaves the daily high above the resistance level at $0.505 but in the reverse, it returns below the ceiling of the slightly bearish channel in which it has moved the last few sessions.
Above the current price, first target in the commented channel ceiling at the $0.46 price level. A close above this price level could be the prelude of strong rises. The second bullish target for the Ripple is at $0.493 (SMA100), from where the chances of breaking the day’s high at $0.505 (price congestion resistance) and entering a bullish mode in the short term would be very high.
Below the current price, first support at the $0.45 price level (SMA200), then second support at $0.446 (EMA50). Below the price level of $0.412 (price congestion support), the situation would get complicated and we could see strong declines.
The MACD at 240-Min continues below the zero line but very close. Morning rises have improved the indicator profile, but while it does not enter the positive zone we will not be able to validate its future potential.
The DMI at 240-Min is less intense than the one seen in Bitcoin or Ethereum, but it is logical since the bulls were already being very active in previous dates. The bears see their strength decreasing although also with less intensity than in the other assets analyzed.