- ETH/BTC in a position to attack key resistances.
- BTC weakness may benefit the market.
- Uncertainty increases in the short term.
Yesterday, late in the American session, the Chicago Mercantile Exchange or CME announced a new record volume traded on April 4. It exceeded 20,000 contracts, or its equivalent 112,910 BTC’s.
Source:CME
I am convinced that the fact that its only competitor in the sector, the CBOE, closed its trading platform on Bitcoin at the end of March has helped to reach these numbers, but it is not only attributable to this.
The change in prices experienced by the Cryptocurrencies segment in recent weeks is beginning to convince more and more participants in the institutional sector, who mainly trade futures and options.
Today in Europe the session begins with slight setbacks among the leading players in the Crypto Segment. BTC and ETH remain very close to their relative highs, being very willing to continue moving upwards as things go along. For its part, XRP keeps being weak and suffering to keep pace with the market.
ETH/BTC 240 Minute Chart
The explanation for the current situation can be found, as always, in the ETH/BTC pair. After a capitulation move last week, it reacted bullishly to the 0.035 level where the confluence of price congestion resistance and an uptrend line stopped the progress.
The bullish force seen these days may be ridiculed if the ETH/BTC can overcome these obstacles and free itself from the current resistance structure. The critical price level is at 0.03187.
Above the current price, the second resistance level is at 0.0365 (parallel bullish trend line), so the third resistance level for the ETH/BTC pair is at the already mentioned level of 0.03187 (price congestion resistance and upper mid-term triangle line).
Below the current price, the first support level for the ETH/BTC pair is at 0.0336 (parallel bullish trend line), then the second support level is at 0.0332 (price congestion support). The third support level is at 0.0326 (parallel bullish trend line).
Click to see the live chart.
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The MACD on the 4-hour chart shows a structure similar to the one seen on February 10th and which developed with a spectacular upward movement from 0.032 to 0.0395. If the upward movement were to replicate, the ETH/BTC pair could reach the 0.042 level.
The DMI on the 4-hour chart shows how the bulls have lost momentum but remain above the ADX line, so the bullish momentum remains. The bears, on the other hand, do not trust the weakness of their opponents and continue to retreat.
Do you want to know more about my technical setup?
BTC/USD 240 Minute Chart
The BTC/USD pair is currently trading at the $5,215 price level and consolidates the price congestion support level at $5,200 for the time being. The current structure may lead to backward movements to lower levels traversed by moving averages. This movement would propitiate the development of the scenario described for the ETH/BTC pair.
Above the current price, the first resistance level is at $5,450 (price congestion resistance), while the second resistance level is a crucial confluence of three price congestion resistance between $6,250 and $6,450. I consider this level to be critical for the long term.
Below the current price, the first support level is $5,200 (price congestion support), then the second support level is $4,919 (EMA50) while the third support level for the BTC/USD pair is $4,590 (time congestion support and SMA100).
Click to see the live chart.
The MACD on the 4-hour chart shows a divergent development, with prices rising as the bearish cut sharpens. One of the two factors should regulate the current situation.
The DMI on the 4-hour chart shows a tie between bulls and bears, both below the ADX line. The situation will be solved probably with a violent cross that can cause price volatility, although without a probable direction prevailing.
ETH/USD 240 Minute Chart
The ETH/USD pair is currently trading at the $176.9 price level after failing to conquer the $180 price congestion resistance attempt.
Above the current price, the second resistance level is at $200 (price congestion resistance), while the third resistance level is at $220 (price congestion resistance).
Below the current price, the first support level is at $165 (EMA50 and price congestion support), then the second support level is at $150 (price congestion support and SMA100). The third level of support for the ETH/USD pair is at $142 (price congestion support and SMA200).
Click to see the live chart.
The MACD on the 4-hour chart shows a divergent price structure but not as exaggerated as Bitcoin. The averages are looking down, and this should bring price weakness.
The DMI on the 4-hour chart shows how bulls get under the ADX and lose the bullish domain. The bears, on the other hand, do not trust that their time has come and stayed at very low levels.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.350 price level after failing to conquer the $0.367 price congestion resistance level.
Above the current price, the first resistance level for the XRP/USD pair is $0.3666 (price congestion resistance), then the second resistance level is $0.390 (price congestion resistance). The third resistance level is at $0.437 (price congestion resistance).
Below the current price, the first support level is $0.347 (EMA50), while the second support level for the XRP/USD pair is $0.335 (price congestion support). The third support level is $0.328 (price congestion support and SMA100).
The MACD on the 4-hour chart shows a deceleration of the bullish momentum that can move to neutral quickly. The price follows the indicator and moves towards support levels.
The DMI on the 4-hour chart shows us how bears have a small advantage over bulls, with both being above the ADX line, which can bring strength to the side of the market that wins the current equality situation.
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