Another day on the thin red line


  • A market on the edge of collapse leaves room for opportunities.
  • XRP/USD can visit the year’s lows once again.
  • The chances of a bounce fade as the days go by.

 

The Crypto Market is Playing to the limit. That’s how it starts this Friday, and it seems like it will end this week. The scenario is quite simple. The Crypto market is moving around the yearly lows after ten months of a bear market. Pessimism covers it all, and the recurring headlines say we are still far from seeing a bottom.

On the opposite side, in the daily and weekly charts, the indicators are set to go up. To go up a lot. However, the lack of fresh money limits this possibility. It seems that nobody is paying attention to these signals when the prices are at limit levels that lower the costs of Stops. If at any point in the chart it is logical to buy, it is here.

It is not a question of being a permabull or a permabear; it is a question of trading and operating at relatively low prices, close Stops and indicators pointing to an upward movement.

The risk/benefit ratio is desirable if stops are well managed. It can cost a reasonable 10% effort against the profit potential.

Do you want to know more about my technical setup?

 

BTC/USD Daily Logarithmic Chart

BTC/USD is currently trading at the $3,275.3 price level after setting a new annual low at $3,192.75. The low point that was reached coincides with the long-term bullish trend line on the logarithmic chart.

It is a critical situation. Losing the support of this trend line would be a disaster that could end with the disappearance of the vast majority of projects. It can happen, of course, it can. A closing below $3,000 and we will have in front of us a “Crypto-glaciation.”

Below the current price, the levels are very tight. The first level of support is at $3,250 (price congestion support). The second level of support is at the annual minimum of $3,192 (yearly low and the long-term trend line). The third level of support is at $2,890 (price congestion support) although it is likely that at the $3,000 price level there is still some support.

Above the current price, the key objectives capable of certifying a change of trend are far away. The first resistance level is at $3,930 (price congestion resistance). The second resistance level is at $4,400 (price congestion resistance) while the third resistance level is at $4,632 (EMA50).

The potential for losses is just under 10%. The profit potential easily exceeds 45 %.

 

The MACD in the daily range continues pointing upside. It is very unusual to see a chart at annual lows and at the same time this indicator crossed upwards. The structure is divergent with the price, which reinforces the upside potential.

The DMI in the daily range shows us how bulls increase activity in this new downtrend, while bears decrease it slightly. I want to note that in the monthly range both sides of the market are tied. This situation can add tension to the moment and increase the violence of the break when it occurs, whatever the direction.

 

XRP/USD Daily Logarithmic Chart

XRP/USD is currently trading at the $0.298 price level. It continues to move into the long-term bearish channel, developing a structure similar to an inverted S-H-S. The XRP/USD pair is currently trading at the $0.298 price level. To complete this technical figure the price could slide towards the lowest annual level at $0.25.

Below the current price, the first support level is $0.27 (price congestion support). The second support level is $0.258 (price congestion support). The third level of support is marked by the bottom line of the bear channel at $0.25 (base of the bearish cove and annual minimum).

Above the current price, the first resistance level is $0.32 (price congestion resistance). During the week there have been three attempts to overcome this resistance, and all three have failed. The second resistance level is $0.345 (price congestion resistance). The third resistance level is at $0.367 (price congestion resistance).

The MACD in the daily range shows how the fast average is about to cross the slow one. The structure is conducive to a downward rejection at the first attempt to pass it to the upside. This scenario coincides with the above and would bring the XRP/USD pair to a fresh low.

The DMI in the daily range shows the bulls a little more active in the last few days, but without much conviction. On the other hand, the bears withdraw a little but keeping the high level of downward trend strength already reached in mid-November.

 

ETH/USD Daily Logarithmic Chart

 

ETH/USD is currently trading at the $85.77 price level, while still respecting the annual low marked earlier this week.

Below the current price, the first support level is at $81 (price congestion support). The second support level is at $69.5 (price congestion support). The third level of support is at $53 (price congestion support). If the ETH/USD pair reaches the second or third level of support, it will break the base of the bearish channel from highs, and the structure would get much worse for the future.

Above the current price, the first resistance level is at $95 (price congestion resistance). The second resistance level is at $125 (price congestion resistance). The third resistance level is at $141 (EMA50).

 

The MACD in the daily range shows us the lines are crossed to the upwards. The slope is also bullish — a very uncommon situation when we talk about an asset at annual lows.

The DMI in the daily range shows us how the bulls have also reacted to the upside to the new price levels. On the other hand, the bears continue to believe in seeing fresh lows and keep the bets.

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