- The cryptocurrencies are recovering after a lost weekend that has seen new lows.
- The approval of Bitcoin's Ohio for some taxes is a central driver of the recovery.
- The graphs again show that the trend is falling with digital currencies outside the oversold territory.
The "lost week" saw a Bitcoin hit $ 3.456, Ethereum dropped below $ 100, and Ripple did not seem resilient. The downfall was an extension of the November 14 sale which sent BTC / USD below $ 6,000 and the November 19 dip that sent him under $ 5,000. The Black Friday weekend was rather dark for the scrambled.
However, all digital currencies enjoy a recovery. Ohio will accept Bitcoin as a payment for no less than 23 types of business tax from today, November 26, also known as Cyber Monday. Ohio is the first US state to do so and one of the first local governments in the world to move forward.
Critics of the criptos claim that the inability to pay taxes, applicable by governments, undermines their prices. The Midwest state step is a significant step forward. The Treasury of Ohio explains the choice of the grandfather of cryptocurrencies:
Cryptocurrencies can not be transferred to third parties without user activation, virtually eliminating frauds; Anyone can view all transactions on the blockchain network; Payments on the blockchain can be tracked according to the second second; a minimum commission is required to confirm transactions on the blockchain network
However, looking at the technical rankings, the picture remains rather gloomy and perhaps offers the opportunity to take profits, go short, or simply sell before prices fall to lower levels.
BTC / USD technical analysis – just another dead cat rebounds?
Looking at the Relative Strength Index (RSI) on the four-hour chart, we see that it rebounded above 30. The drop below that level indicated oversold conditions, where the rebound came from. However, after this rebound, the current level of about 37 indicates that BTC / USD could resume its falls. The momentum remains on the decline, despite the recovery.
The support is waiting for $ 3,647 which was a springboard for recovery. The new 14 month minimum at $ 3,456 is crucial. A loss in the hustle and bustle of the weekend opens the door for $ 3,000.
Looking up, $ 4,000 is a significant psychological level but the real strength is $ 4,124 which has limited digital currency in its recovery attempt. The pre-crash peak of $ 4,595 is next.
XRP / USD Technical Analysis – Looking better, but not by much
The current crypto-crisis has sent Ripple in second place, this time leaving Ethereum far behind. During most of the time, the digital currency used for transactions stood out for its ability to recover, but not for too long. He also suffered and fell. The technical picture looks better than that of Bitcoin and is only a minimum of two months. However, it does not stand out.
Also here, the RSI is out of the conditions of oversold and is at about 43 at the time of writing, a bit better than Bitcoin. Yet even with Ripple, Momentum remains on the downside.
Ripple has a bit more hope if it goes back to over 43, exceeding the 50 simple moving average (SMA). However, first it must exceed $ 0.3944 which served as support before the fall and then turned into resistance. Higher up, the previous support line of $ 0.4240 awaits. Above $ 0.43, we note $ 0.4660 as another line of resistance after preventing a recovery attempt last week.
Looking down, $ 0.3650 is immediate support, followed by the minimum cycle of $ 0.3250. Below $ 0.30, we see $ 0.2690.
ETH / USD technical analysis
Ethereum, used in so many initial coin offerings (ICO) is on the back foot. Even here, there are some signs of life, but it is probably the weakest of all. The Relative Strength Index is at 38 and Momentum is still significantly lower.
$ 113 is the first downside after sustaining ETH / USD in the last few hours. Further down, $ 106.50 was a low swing and is a weak support line. $ 100.97 was the trough on the weekend.
Looking up, the round number of $ 120 covered with Ethereum at the start of the day is an immediate resistance. $ 128.25 served as a resistance on Saturday, after the previous leg. $ 140 were the best on Friday.