- Cryptocurrencies extended their gains but may be somewhat overstretched.
- Ripple, which was the last one to join the party, has more room to fall than the others.
- Here are the levels to watch according to the Confluence Detector.
Bitcoin, Ethereum, and Ripple extend their gains with no apparent driver. BBVA, one of Spain’s largest banks, issued a bond based on blockchain technology. The “Green Bond” is worth around $40 million.
Authorities are cracking down on problematic usage of digital assets. The US FBI lay out the key features of scam Initial Coin Offerings (ICOs), while India, the world’s second-most-populous country, targets criminals using cryptos as part of its cybersecurity offensive.
None of these items is worthy of an upwards move. It seems like bears let go and bulls came in.
However, the technical levels show that bulls may need to accept a pullback of sorts before the next move to the upside, as support levels are not that close as they were on Monday.
This is what the Crypto Confluence Detector shows
BTC/USD is now confined to a high range
Bitcoin got close to the promised land of $4,000 but now faces resistance at around $3,987 where we see the convergence of the PP one-day R1, the Simple Moving Average 100-1d, the previous 1h-high.
Further above, resistance awaits at $4,120 which was the previous month’s high.
Support is close by. At $3,909 we see a cluster including the SMA 10-15m, the PP one-month Resistance 1, the previous daily high, the SMA 5-15m, the SMA 5-1h, and more lines.
Further below, the granddaddy of digital currencies awaits at $3,820 where see the Fibonacci 61.8% one-month and the Fibonacci 38.2% one-day converge.
ETH/USD has more support than resistance
Ethereum continues enjoying a favorable technical picture. Resistance awaits at $150, but is is not that strong. The lines to watch are the previous 4h high, the previous one-day high, and the Bollinger Band 1h-Upper.
The next target is at $153.50 which is the Pivot Point one-day R1.
Support is close by and remains substantial at $146. It is a dense cluster that includes the BB 15-minute Lower, the previous 4h-low, the Fibonacci 23.6% one-day, and the PP one-month Resistance 1.
Vitalik Buterin’s brainchild has further support at $143.50where note the meeting point of the SMA 10h, and the Fibonacci 38.2% one-day.
The next support line for ETH/USD awaits at $140, which is the confluence of the SMA 200-15m, the SMA 50-1h, and the Fibonacci 61.8% one-month.
XRP/USD has room to fall
Ripple is the worst-positioned of all three. Some support is seen at around $0.3365 which is the convergence of the SMA 10-1h, the BB 4h-Upper, and the PP one-day Resistance 1.
The next support line is also weak. At $0.3288 we see a juncture including the PP 1w-R3, the SMA 100-15m, and the SMA 5-4h.
But the only really meaningful support line awaits at $0.3250, which is a dense cluster including the SMA 50-1d, the Fibonacci 38.2% one-month, the BB one-day Upper, and the Fibonacci 161.8% one-week.
XRP/USD has resistance at $0.3500, a round number and also where the Fibonacci 61.8% one-month meets the price.
Beyond this line, $0.3664 could limit some of the gains with the Pivot Point one-day Resistance 3.
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