- Cryptocurrencies have been showing resilience in the face of several bearish attacks and seem ready to rise.
- Facebook is reportedly about to launch its crypto project, drawing attention to digital coins.
- Here are the levels to watch according to the Confluence Detector.
Bitcoin has dipped to the lower ground only to recover afterward. Ehtereum and Ripple followed the same path. Cryptocurrency bears have been trying to push prices lower in recent days but these attempts have all ended with prices bouncing back up. When a financial instrument fails to fall, it may eventually realize that the path of least resistance is to the upside. And that is what the charts are showing us.
Perhaps Facebook’s upcoming launch of its highly-anticipated crypto project will serve as the trigger. According to reports, the social media behemoth is about to launch a stablecoin that will be integrated as a payment tool across its messaging platforms: WhatsApp, Instagram, and Messenger. Facebook may open the blockchain validation process to third parties, making it decentralized.
If Facebook announced its crypto project – rumored to be named Libra – it could draw regulatory attention also to other cryptocurrencies and may help bring mainstream investors into the crypto-sphere.
And while we await Mark Zuckerberg and his colleagues, price action may improve.
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD may bounce off support
Bitcoin sits above a dense cluster of support lines at $7,790 that includes the Simple Moving Average 10-4h, the Bollinger Band 15min-Lower, the previous 4h-low, the SMA 5-4h, the BB 1h-Middle, the SMA 5-15m, the SMA 100-15m, the Fibonacci 38.2% one-day, and more.
The next cushion awaits at $7,630 which is where the Pivot Point one-day Support 1 and the Fibonacci 38.2% one-month.
BTC/USD faces initial resistance at $7,955 which is the convergence of the previous daily high, the PP 1w-S1, and the PP 1d-R1.
The next target for the granddaddy of cryptocurrencies is $8,190 where the SMA 5-1d and the Fibonacci 23.6% one-month meet.
ETH/USD found its cushion and may also rise
Ethereum is in a similar position to Bitcoin. Vitalik Buterin’s brainchild has substantial support at $240 which is the confluence of the Fibonacci 38.2% one-month, the previous weekly low, and the PP 1d-S1.
The next support juncture is at $233, where the PP 1d-S2 coincides with the BB 1d-Lower.
ETH/USD eyes $258 as the first upside target. The level is the meeting point of the Fibonacci 23.6% one-month and the Fibonacci 61.8% one-week.
Further above, $271 is the Fibonacci 38.2% one-week and serves as an upside target.
XRP/USD is winning the battle
Ripple has been struggling with $0.4000 and seems to be winning the battle. It is now settling above a minefield of lines including the BB 15min-Lower, the SMA 10-4h, the SMA 5-15m, the SMA 5-4h, the Fibonacci 38.2% one-day, the BB 1h-Middle, and more.
However, XRP/USD faces resistance already at $0.4057 which is the convergence of the previous 4h-high, the BB 15min-Upper, the Fibonacci 38.2% one-month, and the BB 1h-Upper.
The upside target is $0.4285 where the PP 1d-R3, the SMA 10-1d, and the SMA 50-4h converge.
Below $0.40, considerable support awaits only at $0.3620 where the BB 1d-Lower and the Fibonacci 61.8% one-month meet up.