Since November 28, the bulls are gradually taking over the crypto markets. Or Not. Some believe that current surge in the cryptocurrency market is just a ‘dead cat bounce’.
Today, there is a logical collection of profits done by day-traders and a possible test to the levels gained yesterday may be looming. In the short term, most indicators continue pointing up but there are uncertainties whether the upward trend will continue in the long-term.
To gain a deeper insight of the directions that the markets may take in the medium term, it is prudent to wait until the beginning of the coming week. In recent weeks, the Crypto market has lost has lost at least 35 percent of its average value and the extreme accumulated overselling may result in a significant bounce in future.
The market is technically deviated currently oscillating at the bottom of its averages. The extremely oversold sentiment makes it quite challenging to sustain a downward trend creating room for mean reversal strategies.
The general sentiments about a bright future in the crypto market prompt and tempt more investors to buy in the current low prices aiming to make significant profits in the future price spikes.
Ethereum[crypto coins=”ETH” type=”text” show=”percent”] is showing a positive profile in the short-term ETH/USD chart although confirmation in the higher time ranges is absent.
There has never been any consistent market rise without ETH[crypto coins=”ETH” type=”text” show=”percent”] doing better than Bitcoin[crypto coins=”BTC” type=”text” show=”percent”]. Recently, XRP[crypto coins=”XRP” type=”text” show=”percent”] has declined further than Ethereum[crypto coins=”ETH” type=”text” show=”percent”] and Bitcoin[crypto coins=”BTC” type=”text” show=”percent”]. Technically, the situation will continue according to the latest graphs of the corresponding contracts crosses.
BTC 4-Hour Charts
BTC/USD is currently oscillating around the $4,250 levels around the EMA50 and 23.6% level of the Fibonacci retracement system developed using the drop from $6,400. Above these levels, Bitcoin[crypto coins=”BTC” type=”text” show=”percent”] needs to recover and secure these two technical levels. It is also facing the price congestion resistance at $4,400.
The third resistance zone of 38.2% of the Fibonacci recession system is pegged at $4,636 where the upward trend is likely to encounter the SMA100. Downwards, the first support zone has developed at $3,912 due to price congestion while the second support (relative minimum) is located at the $3,466 level. The third support is at $3,263 which is a price congestion support.
The MACD on the 4-hour charts is in the transition zone hovering between the bearish and bullish indicator. However, the upside potential is strong with the openness and inclination directed to the positive side. The 4-hour DMI chart shows that the bulls are gradually taking control although not yet above the ADX line.
The idea on TradingView for BTC
D4ekEnergY suggests that,
This is looking good overall, guys! Bulls are back. 140 B USD in Global Market Cap – 20 B USD. Powell Rally in traditional markets also! I’m convinced we continue our uptrend and we will go above 5,000 USD now. Let’s see.
XRP 4-Hour Charts
The 4-hour XRP/USD price level is oscillating around $0.3758 although it failed to close above the EMA50 on Wednesday. However, it surpassed the 23.6% level of the Fibonacci retracement system. Turning upwards, the first resistance level is at $0.395(EMA50) and it may prove quite challenging for XRP/USD to conquer this zone.
The $0.40 level is gathering momentum for many traders where strong sales may appear. The $0.413 is the second resistance zone formed by the 38.2% level of the Fibonacci retracement system and price congestion resistance. Another price congestion resistance at $0.429 is the third resistance zone. The MACD at the 4-hour chart is somewhat below the indicator’s intermediate line.
Although the inclination and opening suggest upward trends, it is slightly behind Bitcoin’s[crypto coins=”BTC” type=”text” show=”percent”] development. The 4-hour DMI show that the bulls hold a small advantage over the bears. Both sides show weakness meaning that none of them is set to make a clear move in the short term.
The idea on TradingView for XRP
Corvology suggests that XRP[crypto coins=”XRP” type=”text” show=”percent”] might be doomed for now and it’s a good time to consider opening a SHORT position. He indicates that XRP[crypto coins=”XRP” type=”text” show=”percent”] started its downtrend and the only way to save from that is the hold of upper channel.
ETH 4-Hour Charts
The 4-hour ETH/USD shows the price hovering around the $117. It reached the EMA50 on Wednesday but failed to close above the first price congestion resistance hurdle. The first resistance zone is currently set at $124 which is the EMA50 and price congestion resistance. The SMA 100 at $147 is the second resistance zone while the third resistance is pegged at $155.
If Ethereum[crypto coins=”ETH” type=”text” show=”percent”] reaches the second resistance zone, it would give the crypto an opportunity to become a market leader in the current bearish conditions. On the downside, the first support zone located at $100 is a psychological price level and a relative minimum zone. The second price congestion support is pegged at $94 while the third support zone is at $80.
The 4-hour MACD indicator is midway between XRP/USD and BTC/USD meaning that ETH/USD is entering the neutral zone developing a suitable profile to overcome it. The 240-minute DMI shows that the bulls are slightly trouncing the bears with the DMI+ closing in on the upward ADX. This indicator statistically represents a considerable upward improvement.
The idea on TradingView for ETH
Pro trader coinkilavuz suggests that as long as Ethereum is above $114,60 it can be expected to target $179-$222 levels.
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