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Crypto Tech Analysis: Major Crypto Coins Trade Range Bound, Bearish Breakout Looms Nearby

While price action so far this week has exhibited range bound momentum, a lack of fundamental support and profit booking activity triggered post-mid-week gains have pressured price action of major cryptos' into bears’ path.

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The top three cryptocurrencies were in-line with earlier predictions so far this week. However, neither cryptocurrency market bulls nor market bears have managed to gain the upper hand in control of momentum so far. The price action is mostly range bound trapped within a small price band which continues to cut-off sharp price movements in either direction. However, Trapped within short price range limits, all three crypto coins await a breakout which seems highly likely to occur in the downside as per current price action. For now, bears have managed to erase some of the gains made mid-week, but the price activity is far from weekly lows. This suggests that a lack of solid drag force on either side & influence from short term price bets are likely to keep price action of Bitcoin, Ethereum and Ripple range bound as the trading session progresses today and into the weekend.

Bitcoin: In line with earlier predictions, Bitcoin bulls influenced the pair to breach resistance around $11500 mark and scale as high as $12000 per BTC. However, bulls lack the necessary strength to make a solid, sharp and long positive rally given the fact that crypto market is currently in a phase of consolidation post major crypto coins scaling new yearly highs just last week. As price reached $12000 mark, it triggered sell orders which have been in place for some time now which dragged the pair back towards its support level. The BTC/USD pair is currently trading in $11100 handle with price action slowly heading downwards. When looking from a technical chart, RSI indicator which hints at the momentum of price action remains continues to signal neutral momentum. But the price had declined below 9 and 50 SMA’s while remaining above 100 SMA. This suggests that pair is likely to continue downtrend movement but strong support near $11000 handle and $10560/500 price levels will continue to act as cushioning levels preventing further declines. The pair will rebound and continue the cycle unless it breaks out of the price band restrictions created from short term bets and investor sentiment influenced hurdles.

Ethereum: Ethereum price is heading back to where it started the week. The price of ETH/USD pair has declined well below $300 handle but is yet to breach $250 where it was before last month’s rally to scale new 2019 highs began. The RSI indicator which is used to measure the momentum of price action is seeing its signal line head towards oversold region having tested the border mark of oversold territory – 40 level briefly. The signal line has since climbed up slightly with an upward indication but remains at 24 level well near oversold region. However, in 4 hr chart, the price has declined well below all three SMA’s – 9, 50 and 100 hinting that bears have greater control on price momentum albeit lacking the strength necessary to force a bearish breakout. This suggests that the ETH/USD pair will continue to see bears dominate price action albeit price being trapped within small price range limitations as the trading session progresses into the weekend. The wider price band limit for ETH/USD is at $320/$325 on the upside and $260/$255 on the downside.

Ripple: Albeit moving in range bound fashion, Ripple is closest to seeing a bearish breakout among top three major cryptocurrencies. The price of Ripple is now testing 0.38 handle which could be considered a critical support price level for ongoing positive price run in the long term. However, this is just the cushioning price level when we consider support price. A look at daily and 4hr intra-day chart clearly shows that there are two other price levels with strong support regions which were breached to scale 2019 highs. As the pair heads downwards it needs to breach significant amount of short term bets to move further downwards around 0.36 and 0.34 handles which if failed will lead to the pair seeing range bound activity trapped in a descending staircase pattern. Once 0.38 is breached the next critical support is at 0.34 handle but there is a considerable amount of short term bets at 0.37 and 0.36 handles which are unlikely to be breached easily. When looking from a technical perspective, the price has breached all three SMA’s in the 4-hr chart and is clearly heading in a downward direction. RSI indicator used to calculate momentum is also seeing it’s signal line move well below oversold territory and is currently at 35 level. This suggests that possibility dovish price action is highly likely during the weekend even if trapped within small price band limits currently found at $0.46/$0.45 to the upside and at $0.38/$0.36 to the downside.

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