- Cryptocurrencies have been consolidating their recent losses and looking for a new direction.
- Bitcoin enjoys a favorable position, Ethereum looks vulnerable, and Ripple’s battle is rife.
- Here are the levels to watch according to the Confluence Detector.
Cryptos have been reeling from the latest downfall and are consolidating at lower levels. Bitcoin is trading below $8,000, Ethereum under $250, and Ripple is struggling with $0.40. Such quiet periods of consolidation – either after a rally or after a fall – are usually followed by a surge in volatility.
The most recent cryptocurrency news has been positive and addresses one of the pain points of digital assets. Tadge Dryja, the co-author of the lightning network that allows bitcoin to scale up, has released a new research paper that suggests novel ways of improving transaction performance. If Bitcoin becomes faster, other cryptos will follow – as BTC has been leading prices higher in recent months.
And where are prices heading to?
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD is well-supported at $7,650
King Bitcoin enjoys the most favorable technical outlook – it is perched well above a dense cluster of support lines at $7,650. This includes the all-important Fibonacci 38.2% one-week, the Fibonacci 23.6% one-day, and the Bollinger Band 1h-Lower.
However, if it loses $7,650, the next support lines are weak. The next noteworthy cushion is only at $7,320 where the Pivot Point one-week awaits the granddaddy of cryptocurrencies.
BTC/USD faces some resistance at $7,887 which is the convergence of the Simple Moving Average 10-4h, the Pivot Point one-week Support 1, the Fibonacci 61.8% one-day, and the previous week’s low.
Further above, the digital asset would target $8,210 where the Fibonacci 23.6% one-month and the Bollinger Band one-day Middle converge.
ETH/USD faces an uphill battle at $259
Ethereum is capped by a dense cluster of resistance lines at $259. The barrier includes the Fibonacci 23.6% one-month, the SMA 23.6% one-month, the SMA 100-4h, the Fibonacci 61.8% one-week, the SMA 5-1d, and the SMA 1001-h.
If it manages to move higher, the next cap is weaker, but close – $263 which is the confluence of the SMA 10-1d, the SMA 200-1h, the SMA 50-4h, and more.
ETH/USD has support at $239 where we note the convergence of the Fibonacci 38.2% one-month, the previous weekly low, and the Fibonacci 23.6% one-day.
Vitalik Buterin’s brainchild would find further support at $234 that is the meeting point of the BB 4h-Lower, the BB 1d-Lower, and the previous daily low.
XRP/USD is battling $0.4000
Ripple is battling the round number of $0.40 where a minefield of technical lines limits any movement. The cluster consists of the SMA 5-1h, the BB 1h-Middle, the SMA 10-1h, the SMA 5-4h, the SMA 5-15m, and the BB 15min-Middle.
Resistance is close, at $0.4055 where the BB-15min-Upper, the Fibonacci 38.2% one-month, and the Fibonacci 61.8% one-day converge.
If it breaks higher, resistance awaits at $0.4325 which is the confluence of the Fibonacci 23.6% one-month, the SMA 200-1h, and the SMA 504h.
XRP/USD enjoys support at $0.3845 where we see the meeting point of the previous daily low, the PP 1w-S1, and the BB 1h-Lower.
Lower support awaits at $0.3615 where the BB 1d-Lower, the Fibonacci 61.8% one-month, and the Simple Moving Average 50-one-day all meet.