Bitcoin and Ethereum have all broken away above the key resistance and they managed to do this without making hardly any effort at all. A lot of cryptocurrencies still might run into issues and this is something that does need to be taken into consideration. Right now the price action is ruling and this has activated a very bullish signal. That invites people to look for the best entry level pricing but it is still super important to try and conduct an analysis over various time frames. This needs be done in both longer ones and shorter ones until you can find one that is in-line with the price action. Of course, it’s also important to try and find the cheapest stop possible and this is certainly something that you need to consider.
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Ripple has been able to break above the trendline and this is being done to the point where it matches in with the 200 SMA. This is a sign that this underlying strength, even though the movement is quite tight, is something to take note of. It also implies that the level has been consolidated as well. Bitcoin has broken above a very key trendline and this is especially the case during the Asian session. This has abandoned a bearish status and it is also entering bullish territory. BTC and USD have also surpassed this barrier and this is great to say the least.
On the flip side however, the very first clear target really has confirmed that the breakout is at the $7,850 mark and when you look at the second or even the main target you will soon see that the swing is at $8190. This makes it very difficult to try and break above the first one but the BTC and USD attempt average will really provide a good measure to any underlying bullish strengths. The downside however means that the first support meets the broken trendline. The 50 EMA and even the 100 SMA are still below there and this really does weaken the support levels. These are located between $7595 and if there is a dip then these levels then this would be the ideal entry point. This is still way down below the trend-line and this needs a good dose of attention. MACD on the Bitcoin chart has bounced above the mid-way point and this is a bullish inclination. There is however, some bullish potential does not guarantee results. When you look at the directional movement index, you will see that the very same chart has confirmed the same movement. It is super important to decrease the seller’s intensity but it seems that buyers are not increasing their positions. This confirms the situation above so it’s safe to say that you need to remain alert until the breakout is completely valid.
Ethereum really is trading in at a similar situation when compared to Bitcoin. It has broken above the $604 mark and this is during the Asian trading session. Even though they are in a weak position, it’s important to wait for a breakout confirmation. When you look at the upside however, you will see that the first target will help to consolidate the scenario. This is at $620 at the moment and from this point, it may even go on to project to the upside 200 SMA as well. When you look at the downside however, the very same fragile situation can be seen in Bitcoin and you can see the 50 SMA and even the 200 SMA at $590 and then at $596.
Of course, MACD and the ETH chart shows that it is experiencing a bullish profile and that it is completely horizontal. It is still unable to rest above the midway point on the indicator. The structure of this means that it is going to hold a lot of doubt about the future of ETH and even the USD price action as well. This is something that you have to keep an eye on to say the least. So when you do look at the Directional Movement Index in the same chat you will see that buyers and sellers really are tied at the same level. The ADX has sunk and now new levels are being proposed in terms of lateral action. This is especially the case when you look at the upcoming period. It is very interesting to see this happen and it would also be interesting to see the trendline bounce back as well. This really is the case when you look at the strength that it has. Ripple has also achieved a double-conquer and it is moving closer and closer to the 200 SMA. The trendline is trapping it here and you will also be interested to see that XRP and USD reacted way later when compared to other cryptocurrencies.
Of course, this is a very complicated scenario but it really does come with a huge advantage. It is much closer to the bullish territory when compared. The difficulties are brought by the 200 SMA and this makes it harder to get to the bearish side of the scenario. This helps to keep the ETH price stuck to this area but this is only for the short-term. Only a big spike would really stop the moving average and this would really worsen the already complicated situation. On the upside, the main target for the bulls in Ripple is the 200 SMA. On top of this, there is already a resistance and this is where the whole thing is going to reach its goal of turning the upside. When you look at the downside, the key for the consolidation is the 200 SMA and if this is lost then this would give a tip-off to the price congestion support. There is a very similar level of support here but only time will tell if this is going to be the case.