Recovery time for the main Cryptocurrencies across the board, with Ripple leading the way
ETH/BTC shows that Ethereum is losing steam in favor of Bitcoin
Crypto sell-off finished, technical outlook signaling consolidation until indicators turn around
Cryptocurrencies recovered across the board yesterday, with percentage gains that would be exceptional for any other asset class, but are kind of regular in the widespread crypto sphere. That's why today we are using logarithmic charts, which should help to settle down emotions and see how the recent falls are completely normal in wider projections.
Logarithmic charts relativize the price action in relation to the magnitudes. A rise of $10 is impressive for an asset that was trading at $5 but the projection might be meaningless in another asset that trades around $10000.
BTC/USD Daily chart
BTC/USD
Here we have the logarithmic daily chart of the Bitcoin. This is where we can see how the recent falls of the Bitcoin from close to $20000 to the current levels look much less aggressive, so that helps to erase noise, settle down potential panicking and help us make wiser decisions. Our chart tools offer this logarithmic scale, adapting technical indicators and tools to it.
Bitcoin is trading inside a bearish channel, with resistance in the $15000 area. Support is at the main trendline of the whole bullish move, right now around the $10800 mark.
MACD is moving around a negative area, but has lost inclination and, if the current price levels persist, it would quickly turn around, confirming our forecast of a new bullish leg.
Directional Movement Index supports the idea of more lateral action for the upcoming trading sessions, with D- still above ADX and with no signal from D+ that indicates any rising of the buyers number.
XRP/USD Daily chart
XRP/USD
The Ripple logarithmic chart shows that Fibonacci levels are working to perfection here, giving the recent falls a much more coherent and natural outlook. Right now, Ripple is trading in the 23.6% retracement level from all-time highs, first meaningful level in this analysis.
MACD is comfortably moving above 0, flattening and showing clear intentions of quietly sliding until settling down just above this neutral level.
Directional Movement Index shows equilibrium between buyers and sellers, with the ADX showing how the trend keeps losing steam.
ETH/BTC Daily chart
ETH/BTC
Last but not least, we need to take a quick look at the ETH/BTC chart, as it is showing a clear loss of Ethereum strength in relation to Bitcoin. Now the door is open for King BTC to consolidate its leadership in the crypto sphere.
Ethereum outperformed Bitcoin during the last weeks, but now its technical outlook has deteriorated. The current trendline coming from lows is the key support to watch. It's difficult to make price predictions, but if broken, our forecast is that BTC will recover its edge against ETH.
MACD is about to cross downwards, but still with a chance of bouncing up that should be taken to rotate to Bitcoin rather than just opening a position.
Directional Movement Index shows an increase in the sellers. Even if they are still below the buyers, the bullish trend in the cross is losing strength.
Expect volatile trading in tight ranges while indicators flatten out and gain time to start a probable bullish trend across the Crypto board next.!
source https://www.fxstreet.com