- Cryptocurrencies have been unable to extend their gains and retreated.
- Significant resistance lines imply further falls are due before things improve.
- Here are the next levels to watch according to the Confluence Detector.
Bulls must be on the beach – each time that cryptocurrencies rise – they lose momentum and slip back down. Luckily for cryptos, bears are also hard to spot – perhaps stuck in the woods.
The crypto sphere has been busy Craig Wright’s legal issues and Facebook’s Libra’s regulatory struggles – yet there has been a dearth of considerable market-moving news.
After several limited back-and-forth moves – where next for digital assets? The path of least resistance is down according to our charts. It may probably get worse before it gets better – perhaps when August reaches its end.
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD blocked by two lines
Bitcoin is facing fierce resistance at $10,241, where a dense cluster of lines awaits it. This includes the Bollinger Band 4h-Middle, the Fibonacci 61.8% one-week, the Simple Moving Average 100-1h, the BB 15min-Upper, the SMA 10-1h, the SMA 5-one-day, the SMA 200-15m, and the previous 4h-high.
The next cap is close. At $10,400 we note the meeting point of the SMA 10-1d and the BB 1h-Upper.
Further up, $10,665 is another significant cap, where we see the convergence of the Pivot Point one-day Resistance 1, the Fibonacci 38.2% one-month, and the SMA 50-1d.
BTC/USD has weak support at $10,080, where the Fibonacci 23.6% one-month and the SMA 100-1d converge.
Further down, the granddaddy of cryptocurrencies may find support at $9,817, which is the confluence of the PP 1w-S1 and the Fibonacci 161.8% one-day.
ETH/USD struggles with $189
Ethereum has a tough line of resistance at $189, which is the juncture of several lines including the SMA 200-15m, the SMA 50-1h, the BB 4h-Middle, the Fibonacci 1.8% one-day, the Fibonacci 61.8% one-week, and the BB 1h-Upper.
ETH/USD faces further resistance leading to $193, where the convergence of the BB 4h-Upper, the PP 1d-R1, the SMA 200-1h, the SMA 50-4h, the SMA 10-1d, and the Fibonacci 23.6% one-day awaits it.
Some support awaits it at $185, where we see the confluence of the PP 1d-S1, the BB 4h-Lower, the BB 1h-Lower, and the previous 4h-low.
The next line to watch is $180, where the previous weekly low and the Fibonacci 161.8% one-day converge to provide support.
XRP/USD battles $0.2727
Significant resistance awaits Ripple at $0.2727, which is a minefield of lines including the Fibonacci 61.8% one-week, the SMA 100-1h, the Fibonacci 61.8% one-day, the SMA 200-1h, and the SMA 50-4h.
Next, XRP will need to break above $0.2783, which is the convergence of the SMA 100-4h, the Fibonacci 23.6% one-day, and the PP 1d-R1.
Support awaits at $0.2615, which is the meeting point of the PP 1d-S2 and the PP 1w-S1.
XRP/USD has more substantial support at $0.2520, where the PP 1d-S3 converges with the previous yearly low.
See all the cryptocurrency technical levels.