No visibility in a highly hazardous environment

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  • Opposite technical signals blind the field of vision in a complex environment.
  • Moving averages and price action point to declines in the short term.
  • Technical indicators hint bullish crosses in the Top 3 cryptocurrencies.

The lack of price volatility acts contrarianly in the minds of active traders. A market moving in a narrow price range generates a lot of anxiety in traders.

This anxiety is not only because of the difficulty in finding the trade but also because of the lack of information about the future trend.

Today’s session shows precisely this lack of volatility, with little movement, but hides an exciting technical moment that will define the market trend in the coming weeks.

The MACDs of the BTC/USD, ETH/USD and XRP/USD pairs are all aligned in a classic bullish cross structure, which should materialize before the end of the current week. 

The behavior pattern of this indicator has some particularities when applied to the cryptocurrencies market.

– The pattern called “MACD failure” does not usually work when applied to Bitcoin or Ethereum. The bullish cross is given at the first attempt and not with a rejection at the first attempt.

– The pattern called “cross-test”, which involves a test of the newly crossed line, is more pronounced and can even lead to new lows (or highs in the case of bear crosses) without undoing the cross.

As we will see in the detailed analysis of each pair, the most evident projection proposes an increase in volatility but with no visibility in the direction of the price.

 

ETH/BTC Daily Chart

The ETH/BTC pair is currently trading at the price level of 0.0202 and continues through the narrow space provided by the EMA50 and the SMA100. 

If the situation does not change and volatility increases, ETH/BTC will encounter the long-term bearish trend at Christmas and that might not be a good gift. 

A very flat price profile would have little chance of crossing the upward trend line, and if it did, it would be likely to slide down above the downward trend line. 

Above the current price, the first resistance level is at 0.0207, then the second at 0.0218 and the third one at 0.0225.

Below the current price, the first support level is at 0.020, then the second at 0.0189 and the third one at 0.0180.

The MACD on the daily chart shows a very flat profile, in a slightly negative zone, hinting a move downwards. Right now the data is minimal due to the low volatility. 

The DMI on the daily chart shows the bears losing strength at the same speed as the bulls gain it, but keeping the distances between them. The sellers continue to be in control.

 

BTC/USD Daily Chart

The BTC/USD pair is currently trading at the $7.277 price level. Technically the situation is complex. 

As a bearish argument, we see the BTC/USD pair within the long-term bearish channel, a scenario that could develop up to the $5,000 price level.

As a bullish argument, the indicators show compelling bullish turning patterns.

Any solution to the current situation implies a drastic increase in volatility.

Above the current price, the first resistance level is at $7,400, then the second at $7,600 and the third one at $7,750.

Below the current price, the first support level is at $7,100, then the second at $6,850 and the third one at $6,750.

The MACD on the daily chart shows an evolving bullish cross. Bearing in mind the particularities of the MACD applied to the BTC/USD pair, we can expect an increase in volatility but with little visibility of direction in the short term.

The DMI on the daily chart shows how the bears continue to lose strength, although the bulls do not increase it to the same extent.

 

ETH/USD Daily Chart

ETH/USD is currently trading at $147.3 and appears to be moving away from the $150 resistance level. The technical situation of the ETH/USD is as ambiguous as that of the BTC/USD. 

Moving averages have firm bearish profiles, while indicators show visible bullish cutting patterns. 

We can expect an increase in volatility in the short term, but with no visibility to the direction of the price.

Above the current price, the first resistance level is at $150, then the second at $155 and the third one at $160.

Below the current price, the first support level is at $140, then the second at $130 and the third one at $125.

The MACD on the daily chart shows a bullish cross developing. The particular behavior of this indicator applied on a crypto-asset supports a scenario of increasing volatility but with a lack of visibility on the direction. 

The DMI on the daily chart shows how the bears continue to lose strength, while the bulls give up the fight for leadership and retreat.

 

XRP/USD Daily Chart

XRP/USD is currently trading at the $0.219 price level and loses the $0.22 support level. Below the current price, the XRP/USD pair is in danger of significant declines due to the lack of density of support levels.

Above the current price, the first resistance level is at $0.22, then the second at $0.24 and the third one at $0.251.

Below the current price, the first support level is at $0.19, then the second at $0.17 and the third one at $0.15.

The MACD on the daily chart shows the same profile it has on the BTC/USD and ETH/USD pairs. It proposes an increase in volatility but with little visibility in the direction of the price in the short term.

The DMI on the daily chart shows the bears losing strength, while the bulls give up taking advantage of this weakness and also lose power.

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