Cryptocurrency market this week started off with consolidative price action and it seemed like bears may gain upper hand in the short term. However, strong support near critical support levels helped cap downside price move and major cryptocurrencies are back on track to regain loss incurred during the weekend decline. All three major cryptocurrencies Bitcoin, Ethereum and Ripple have regained foothold above critical price levels.
Bitcoin: Bears did gain some momentum influenced by corrective price rally and the pair declined well sharply breaching multiple critical support price levels at $10400 to $10000 earlier this week. But positive investor sentiment and prevalent strong support for cryptocurrency bulls in the long term helped cap the declines post which bears’ influence fizzled out. The BTC/USD pair has since managed to reverse all loss incurred earlier this week and move above $11000 handle which is a clear sign that bulls have the upper hand. BTC/USD is currently trading at $11280 handle with RSI indicators’ signal line moving towards the oversold region in both 4 hr intra-day and the daily chart which suggests that upward price momentum is likely to continue in near future. The price has managed to move above 9 and 100 SMA’s in 4 hr chart but remains below 50 SMA at $11500/504 which acts as strong resistance to the upside while support is located at $11000 & $10560/500 price levels.
Ethereum: Ethereum, unlike Bitcoin, didn’t see much of a steep decline over the course of the last two days. While the ETH/USD pair did see some declines, the downward price action was capped well above $270 handle and price remained range bound mostly within $290 to $280 handle for most of the two trading sessions. Having remained in consolidative price action for the last two trading session and failing to gain control of price action, bears have lost control over price action. The price of ETH/USD pair has slowly begun to regain upward momentum erasing loss from the last two trading sessions. The RSI indicator used to measure price momentum is currently at 55 mark in both 4 hr intra-day and the daily chart which suggests bulls have strong control over price action in immediate and near future trading sessions. The price data when compared to 9, 50 and 100 SMA’s also support the possibility of continued upward price momentum. The ETH/USD pair is now at $297 handle and is well on its way to move back above critical price mark at $300. To the upside, strong resistance is found around $305 handle and to the downside, support is at $290 handle respectively.
Ripple: Ripple has finally managed to break free from its wavy price momentum in which the pair had been trapped since its sharp decline early last week. While the XRP/USD pair is still on recovery rally and has managed to gain upper hand over the last 24 hours the pair face a strong hurdle near 0.40 handle. Despite the sharp decline and overwhelming bearish pressure from some level of selling activity found in the pair, it managed to hold steady above $0.38 handle. For the pair to truly gain dominance in either side, it needs to breach long term price limitations found on either sides at 0.43 handle to the upside and 0.38 handle to the downside. However, bulls continue to fight bravely and price action in Asian market hours today suggests that the pair could likely break past 0.40 hurdle if existing bullish momentum continues to hold steady across the day. RSI indicator used to measure the momentum of price action is seeing the signal line make a sharp upward incline and is holding steady around 47 level in both 4 hr intra-day and daily chart. However, a look at SMA’s in the intra-day chart shows that Ripple still remains under pressure. While the price has moved above 9 SMA, it is still well below 50 & 100 SMA’s. The XRP/USD pair needs to climb above 0.41 handle and gain a strong foothold at said price level before making an attempt to breach long term critical resistance at $0.43 handle while $0.38 continues to act as critical support in the downside.
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