- ETH/BTC reaches the limit and drags the market into the abyss.
- Mixed indications limit visibility in the short term.
- The situation limits the time available, resolution soon.
A new week of analysis of the three main players of the crypto-board begins in a market that continues to drag near the disaster.
The ETH/BTC pair, an instrument that allows us to follow the market mood, is playing dangerously with the bullish trend line, breaking it early in the day, in the middle of the Asian session.
At the beginning of the European session, the bullish zone recovers by the minimum but without margin for error. Closing below the level of 0.032761 Bitcoins for each Ethereum would mean the loss of the upbeat moment and would lead the crypto market as a whole to a painful course towards new relative lows.
ETH/BTC Daily Chart
For those who use this pair to balance their position between the ETH and the BTC, this would be the ideal point to move their Bitcoin towards the Ethereum. However, the trader must keep in mind that a breakdown could cause a generalized fall that would be more pronounced in the Ethereum than in the Bitcoin. There is potential to scratch an acceptable amount of satoshis from Bitcoin, but the risk is high.
BTC/USD 240 Minute Chart
BTC/USD is currently trading at the $3,527 price level after exceeding the swing minimum by only $1 and leaving it at $3,480.52 yesterday, January 20. The overall market situation is weak as I have explained in the previous paragraphs, so there is not much more room for falls.
In the case of Bitcoin, I would at best set the bearish limit on the next support level at $3,466 (price congestion support). Below this price level, I would assume a new bearish scenario in the short term and make appropriate changes in the composition of my portfolio. The second support level is at $3,320 (price congestion support), and the third is at $3,240 (price congestion support).
If, on the contrary, we see a bullish reaction, the first resistance level for the BTC/USD is at the $3,600 price level (price congestion resistance), where an authentic defensive system starts and continues with the EMA50 at $3,630, a second resistance for price congestion at $3,690, then a next resistance at $3,725 with the SMA100 and at $3,778 with the SMA200. Also, as this wall’s last bastion, there are two congestion resistances at $3,900 and $4,050.
The MACD on the 4-hour chart shows a limited bearish profile. The current slope is slight, and the opening between the lines does not announce much intensity on the supply side either. This situation can change if sales appear.
The DMI on the 4-hour chart shows bears rising over the weekend, although decreasing in intensity over the last few hours. The bulls, on the other hand, are partially withdrawn although they remain above indicator level 20, a detail that gives a positive touch to the situation.
ETH/USD 240 Minute Chart
ETH/USD is currently trading at the $116 price level, after reaching twice in the last few hours the $115 price congestion support. This price level has blocked price falls three times since mid-December, so it is evident that this first support is critical in the short and medium term.
Below the first level of support for ETH/USD, the second level is $110 (price congestion support), and the third level is $105 (price congestion support).
On the bullish side, the first resistance level is at $124 (EMA50), followed by a narrow but solid resistance band that starts at $130 (price congestion resistance), continuing at $132 (SMA200) and ending at $134 (SMA100). The third resistance level at $142 (price congestion resistance) would certify entry into a fully bullish scenario.
The MACD on the 4-hour chart shows a bearish but rather weak profile, although if sales appear, the setup could get worse quickly.
The DMI on the 4-hour chart shows how the bears have felt comfortable with the recent declines, rising sharply since last Friday. The bulls, for their part, gave up fighting and significantly diminished their activity. The scenario is positive for the bulls given the deviations caused by the aggressive movement.
XRP/USD 240 Minute Chart
XRP/USD quotes at the price level of $0.3184, pegged to the congestion support price which is at $0.32. If the XRP fails to move above the $0.32 level, it will give a signal of significant weakness.
Below the current price, the first support is $0.308 (price congestion support). The second support level is $0.296 (price congestion support). The third level of support for the XRP/USD is at $0.283 (price congestion support).
Above the current price, the path presented to the XRP is not an easy one at all. First, the price congestion resistance at $0.32 (price congestion resistance), followed by the EMA50 at $0.329 and the SMA100 at $0.341. The sequence of obstacles would continue with a third resistance at $0.345 (price congestion resistance), followed by the SMA200 at $0.357 and finally at $0.3685 (price congestion resistance).
The MACD on the 4-hour chart shows a shallow bearish profile. If sales appear it can quickly increase the bearish pattern, but it can also turn up quickly if money appears.
The DMI on the 4-hour chart shows the bears with the control, but without the big difference seen in the two pairs previously analyzed. The bulls remain at considered active trend levels.