Post last week’s sharp boom which saw price of major cryptocurrencies scale new yearly highs, profit booking activity and strong resistance to the upside have capped further gains.
Cryptocurrency market is now seeing bulls and bears wage for control of momentum with bears consolidating hold over short term price activity. However, a look at price action in 4 hour intra-day and daily chart shows that bulls still hold control of long term price action given the fact that price of all three major cryptocurrencies – Bitcoin, Ethereum and Ripple are well above critical support levels.
Bitcoin: The BTC/USD pair which began its decline post hitting strong resistance to upside near $13900 handle, maintained a steady downward price action over the weekend. However, bears have begun to lose steam as price action seems to consolidating well above critical support region. In 4-hr chart, RSI momentum indicator sees its signal line stabilize above 40 – slightly higher than oversold region. The price is below 9 and 50 SMA’s but well above 100 SMA signal region. The pair needs to breach immediate support at $10650 and psychological support at $10410/400 for bears to gain control of momentum while price needs to go above resistance at $11545 – the confluence of 9 & 50 SMA’s and psychological resistance at $12435 for bulls to regain momentum.
Ethereum: The price of ETH/USD pair has declined below critical support region of $300 as trading session began for the week. Having declined below $300, the next level of psychological support is at $230-$225 price region. In 4-hr intraday chart, RSI momentum indicator is seeing signal line stabilize slightly above oversold level near 41.92 level which suggests bears may be losing steam, but given the fact that price has declined below $300 mark and has declined below all 3 SMA’s – 9, 50 & 100 we can expect bears to retain hold of price momentum in immediate future. The pair will be seeing bearish consolidation within $300-$225 price range and a breach above or below the mentioned price levels are required for the pair to gain the next leg of dominant price rally.
Ripple: The price action of XRP/USD pair has turned range bound with bears fully losing steam unlike the scenario with above mentioned cryptocurrencies. While price action over the weekend was bearish for Ripple bears have lost momentum as trading session progressed during Asian market hours and bulls have retaken control albeit failing to reverse early loss. RSI momentum indicator has flat lined above oversold region at 43 mark in both intra-day and daily chart. The pair has recovered from weekend lows near $0.39 and achieved stable foot hold above support of $0.40 handle. But strong resistance found at $0.41 handle which coincides with 100 SMA has capped further upside move. The pair needs to breach resistance around $0.43 & $0.45 handle for bulls to gain momentum while a decline below $0.39 handle is required for bears to gain dominant hold over price rally. Until above mentioned price levels are reached the pair will see price action which lacks clear directional bias.
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