- BTC/USD follows the script and moves back, with a target price level of $6,890.
- ETH/USD also enters correction mode, reaching theoretical target at $284.
- XRP/USD accompanies the correction and reaches a mid-point on its way to the $0.32 price level.
We're excited to hear about Yahoo Finance's new service that allows you to buy Cryptocurrencies directly from their financial information page. It is surprising that there are multiple problems and doubts to approve the launch of ETFs on Cryptos but that there is no problem in buying them directly on one of the largest platforms in the world.
The technical study told us yesterday that the main assets of the Crypto board were most likely to enter a consolidation phase and we are already in that scenario.
The most remarkable thing of the day, from a technical point of view, is the phase of development of the corrective pattern in each of the three main cryptocurrencies.
The thing that strikes me is that it seems that Ethereum has consumed the phases very quickly and is already at a key point where ETH/USD could be turned upwards well in advance of what the BTC/USD is likely to do. It is only a possible scenario for ETH/BTC. The other scenario, the opposite, proposes another bearish leg for ETH/USD. And Ethereum does not have much margin for downward movement without critically damaging its technical outlook.
BTC/USD 240-Min
Bitcoin is trading against the Dollar at the $6,971 price level, still halfway to the target of the retracement which is at the bullish trend line won earlier this week. BTC/USD can have an extension to confirm the SMA200 from the upside. The target price level is $6,890, and right now the SMA200 is moving at the $6,847 price level.
Above the current price, BTC/USD has as its main target the price level of $7,117 (relative highs). From this level on, Bitcoin should jump forward to $7,400 (price congestion resistance) and so on with the following resistance levels at $7,600 (price congestion resistance), $7,730 (price congestion resistance) and $7,860 (price congestion resistance). The target for this second upward leg would be at the price level of $8,700 - $9,000.
Below the current price, the target for BTC/USD in this corrective tranche at $6,890 (trend line). The scenario would also accept an extension through the level where the SMA200 passes at $6,847 (moving average). In this case, the relevant input would be the closing level of the candlestick, which should be above the price level of $6,900 (trend line).
In any case, if Bitcoin loses this last support, next support in the price level of $6,770 (moving average and price congestion support) and further down in the price level of $6,600 (moving average and price congestion support).
The MACD at 240-Min is crossed downwards and has enough room to develop to the short side. The most likely pattern is one of slow consolidation with mild price declines.
The DMI at 240-Min shows buyers decreasing positions while sellers increase them, albeit far from important levels. The trend force, indicated by the ADX, is slightly decreasing but still at fairly high levels.
ETH/USD 240-Min
Ethereum is trading against the Dollar at the price level of $282.87. This is just above the SMA100 and EMA50, important moving averages that could give ETH/USD good support.
As I mentioned in the introduction to this analysis, the technical development of ETH/USD is more advanced than in the case of BTC/USD. The clearest point of this situation is seen in the MACD and DMI indicators below.
Above the current price, ETH/USD has a clear first resistance at $290 (price congestion resistance) followed by $305 (price congestion resistance) and $317 (price congestion resistance). The bullish target for this second tranche is, in the case of ETH/USD, the $460 (trend line) level.
Below the current price, ETH/USD only has two clear stands before rolling down the mountain, the first at $270 (price congestion support) and the second at $260 (price congestion support).
The MACD at 240-Min is crossed upwards but is now close to the 0 level that would exert the support role. This situation may lead to the emergence of bullish reversals in the near future. A few days ago, I showed you a graph of the ETH/BTC cross hinting a change in the relative behavior of Ethereum vs Bitcoin could happen shortly. In this detail of the MACD, we can see a similar sign, although still premature.
The DMI at 240-Min shows buyers and sellers almost even, with a slight advantage for the bulls. This is also an indicator that a possible turn is imminent.
XRP/USD 240-Min
XRP/USD is currently trading at $0.330, with a resumption of the corrective movement that started yesterday during the American session. Technically, it is the pair that shows the most fragility at the moment.
Above the current price, XRP/USD has a resistance at $0.345 (price congestion resistance) followed by others at $0.360 (EMA50) and at $0.368 (price congestion resistance). The target for a second bullish tranche is set at the $0.45 price level (trend line).
Below the current price, first support at $0.32 (SMA100 and price congestion support) followed by $0.296 (price congestion support). Finally, support at $0.257 (relative minimum and support for price congestion).
The MACD at 240-Min is shown crossed down, with very little space from the level 0 of the indicator. That doesn't leave much room for bearish movement.
The DMI at 240-Min shows buyers and sellers very evenly matched, with a slight advantage for bears. The level of intensity in both is low and the ADX shows no clear strength in either direction either. Possible slow consolidation scenario at levels of $0.30-$0.32.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.