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- BTC / USD is in a key technical scenario.
- The dominant pessimism is likely to turn upside down.
- ETH / USD rejects leadership again and the market languishes.
The weekend is approaching without significant changes among the main protagonists of the Crypto board. I am reviewing the dominant emotional state in social networks and the rules of pessimism. Darkness creates an optimal atmosphere for a change in the direction of the market.
The extreme pessimism is the antagonist of the blind euphoria we saw exactly one year ago. This melancholy crushes the psyche of the keepers, but it should not do so in the minds of the traders. For a trader, the direction of the market must be secondary.
This extremely depressing environment eagerly covers the ability to look at the market and make the right decisions. The task of an analyst is to provide a clear picture of the current scenario that will help investors in the process of managing their portfolios.
Trying to offer this service, today I will analyze the graphs of Bitcoin, Ripple and Ethereum represented on a logarithmic scale. This type of representation allows you to analyze very volatile assets with wide intervals.
BTC / USD daily logarithmic chart
BTC / USD trades at the price level of $ 3,362. The price has reached the trend line that governs the movement of the BTC / USD for years, and so we are facing a decisive moment. We can see if we look at the chart. In recent years the price of Bitcoin has moved below the line on several occasions, to return to rise above again.
Below the current price, the first level of support is $ 3,275 (support for price congestion and long-term uptrend line). The second level of support is $ 3,177 (long-term bearish trend line). The third level of support is $ 2,890 (support for price congestion). Regarding this third level of support, I find it very unlikely that it will be reached in the coming days because it would take an extraordinary sales force to break the two intermediate media.
Above the current price, the first serious resistance level is $ 3,925 (resistance to price congestion). The second resistance level is $ 4,390 (resistance to price congestion). The third resistance level is $ 4,693 (EMA50), a critical level from which we could start talking about a turn towards the top.
The MACD in the daily range shows a perfect profile for a movement towards the top. After moving to extremely dangerous levels, he draws a bullish divergence and moves upwards. It is bullish according to the manuals, but the current situation can generate even more extreme movements.
The DMI in the daily interval shows the bulls that increase their activity from the arrival of the price to the current zone. It is, therefore, a commercial area. Bears, on the contrary, should think the same way they have reduced their strength to get closer to current levels.
Daily log chart XRP / USD
The XRP / USD is currently trading at the $ 0.306 level after failing to win the first resistance level at $ 0.32 yesterday. After this failed attempt, the XRP / USD fell for support at the price level of $ 0.30 and found it. These are now the warning levels for this pair.
Above the current price, the first resistance level is $ 0.32 (resistance to price congestion). The second resistance level is at $ 0.345 (resistance to price congestion). The third resistance level is $ 0.370 (resistance to price congestion) and is very important if the XRP / USD beats it, which would allow an attack on EMA 50 to $ 0.394 and at least one neutral scenario .
Below the current price, the first level of support is $ 0.30 (support for price congestion). The second level of support is $ 0.271 (support for price congestion). The third level of support is $ 0.258 (support for price congestion and annual lows).
The MACD in the daily range shows a perfect bullish profile that I doubt can be real and working. It is likely that we will see a downward rejection of this indicator in the coming days.
The DMI in the daily range shows us that neither the bulls nor the bears have changed their expectations to reach this price range. The ADX shows a loss of strength of the trend in the last sessions.
ETH / USD daily logarithmic chart
The ETH / USD trades at the price level of $ 89.3. Yesterday he tried to violate the $ 95 resistance level but failed. The Ethereum has all the attention on it for its leading position in bull markets and its current weakness worries analysts.
Above the current price, the first resistance level is $ 95 (resistance to price congestion). The second level of resistance is at $ 125 (resistance to price congestion). The third resistance level is at $ 144 (EMA50).
Below the current price, the first level of support is $ 80.5 (support for price congestion). The second level of support is $ 69 (support for price congestion). The third level of support is $ 53 (support for price congestion).
The MACD in the daily range also shows a bullish manual structure. I am amazed at the clarity of the structure with respect to the perceived pessimistic environment.
The DMI in the daily range shows bulls not convinced of a possible upward change in the price path. The bears, for their part, have decreased a bit of intensity but remain at very high levels.
To summarize the situation, if you have reached these levels without being pushed to sell, there is nothing at the time of telling us that this market is unrecoverable – nothing that gives us reasonable reasons.
If you are thinking of buying, the levels are adequate not for the price, but because the loss of any level of support can give us the signal to make stops and save capital to insert lower prices if we see them.
Featured image courtesy of Shutterstock.
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