- Cryptocurrencies enjoy a fifth day of rises with Bitcoin breaking the $4K barrier.
- Ethereum also has room to rise but Ripple may lag behind.
- Here are the levels to watch according to the Confluence Detector, our proprietary tool
The recovery continues in the world of digital coins. In the past five days, cryptos are climbing two steps forward and consolidate for a while. These are very healthy gains are a mirror image of the unhealthy falls with no real recoveries, only “dead cat bounces”.
The move began before the one-year anniversary of Bitcoin’s peak near $20K and continue afterward. There are no clear catalysts but the theory of whale accumulation is gaining traction. The theory says that whales operating outside crypto-exchanges dumped coins from November 14th onward only to trigger others to sell and push prices lower. After the crash, they will begin accumulating once again. And in the Q1 2019, when Bakkt and NASDAQ join the crypto-world, prices will continue to higher ground and the whales will widen their wealth.
In any case, it is critical to be aware of the technical levels~
BTC/USD looks beyond $4,500
Bitcoin, the grandaddy of cryptocurrencies, has some resistance at $4,045 which is convergence of several technical levels including the Simple Moving Average 5-15m, the Pivot Point one-day Resistance 2, the Bollinger Band 15-minute Middle, the previous 1h-high, and the SMA 5-1h.
Further above, $4,192 is the Fibonacci 23.6% one month. However, these are not significant levels and our chart ends at $4,545, indicating there is scope for additional gains beyond that line.
On the other side, support is substantial. At $3,492 we see the previous 1d-high, the PP 1w-R3, and the SMA 10-1h. Another noteworthy line is $3,858 which is where the PP 1d-R1 and the Fibonacci 23.6% one-day converge.
All in all, the path of least resistance for BTC/USD is to the upside.
ETH/USD to beyond $125?
Similar to Bitcoin, Ethereum is also enjoys a healthy cushion and few upside levels. The scope of our ETH/USD reaches $125 until where there are no huge hurdles. At around $112 we see the confluence of the Fibonacci 161.8% one-week, the BB 4h-Upper, and the SMA 200-4h.
At $113 we see the PP 1d-R2, the BB 1h-Upper and the PP 1w-R3.
Vitalik Buterin’s brainchild has considerable support at around $107, where we see the PP 1d-R1, the SMA 10-1h, and the PP 1w-R2.
XRP/USD will struggle with $0.3820
Ripple has a different story. It faces a hurdle at $0.3820 which is a dense cluster including the all-important Fibonacci 23.6% one-month, the BB 1d-Upper, the BB 15m-Middle, and quite a few other lines.
If the No. 1 Altcoin does manage to overcome this hurdle, $0.4194 is the clear target It is the meeting point of the Pivot Point one-day R2, and the Fibonacci 38.2% one-month.
Support awaits XRP/USD at $0.3670 which includes the Fibonacci 38.2% one-day, the BB 1h-Middle, and the SMA 5-4h.