The Crypto universe accepts the rules of the market

Fibo Quantum

  • Tense calm on the Crypto board in the face of permanent vision of the abyss.

  • Constant changes are seen at the front of a market that loses strength quickly.

  • The SEC is putting order in a market that will eventually thank it.

 

Playing with the limits is always risky, but it is in these situations when theatres, pockets, and cemeteries fill up.

The Crypto market as a whole is on the cord, and it does not have any security that it will not end up hitting the ground. The main players in the Crypto sector are close to critical long-term support levels. There is no room for jokes, and the environment holds its breath at every pirouette of the price.

However, what do we observe if we open the spotlight?

We see the SEC opening the door to ICOs that comply with the regulations. Also, the SEC itself is in charge of fining, and closing Hedge Funds focused on Cryptos and Broker-Dealers without a license.

We also receive news of layoffs of a good part of the staff in several projects, including Bitmain in its office in Israel, dedicated to mining or intermediaries in the sector.

However, we also see how the world’s largest crypto exchange in terms of volume, Binance, opens its Institutional Investments department. At the same time, American Express celebrates the adoption of Ripple as a transactional gateway and how initiatives arise across the planet that in one way or another legitimize the technology and Cryptocurrencies.

We are living a process of purging, transition, and adaptation. As in any technological revolution, the initial euphoria must give way to a process of natural selection that leaves only the best projects on the market.

I don’t know how long this situation can last, but I’m sure that finally, it will enter a much more robust, credible and above all, profitable phase.
 

Do you want to know more about my technical setup?

 

BTC/USD  Daily Range.

The BTC/USD is currently trading at the $3,400 price level after trying unsuccessfully to recover to the $3,500 level.

It is at this price level that the BTC/USD touches a very long-term trend line that stopped the bearish movement. It is a bearish trend line generated in the days of all-time highs (see chart).

Below the current price, the first support for the BTC/USD pair is at the $3,250 price level (price congestion support). The second support level is at $3,200 (long-term bearish trend line). The third support level at $2,885 (price congestion support) would bring the price below this trend line and probably accelerate the declines again.

Above the current price, the first resistance for the BTC/USD pair is at the price level of $3.930 (price congestion resistance). The second resistance level is at $4,400 (price congestion resistance). Above this price level, we already find the EMA50 at the price level of $4,800.

I would not end the bearish momentum until BTC/USD exceeds $5,500.
 

The MACD on the daily chart shows a very flat and slightly bullish profile. It moves at very negative levels and this conditions everything. The pattern gives some possibilities for an upward price movement.

The DMI on the daily chart shows how the Bulls continue to increase activity levels since late November. On the other hand, the Bears do not give much potential to maintain their positions and are also gradually reducing them.

XRP/USD Daily Range.

The XRP/USD is currently trading at the $0.304 price level. It is a bit above the relative minimum level marked on Friday at $0.2897 but without recovering the close resistance at $0.32.

Below the current price, the first support is at the $0.297 price level (price congestion support). A close in the daily range below this support level could drive the Ripple currency quote to new annual lows. The second support level is $0.2725 (price congestion support). The third level of support is at the yearly lows at the price level of $0.2595 (price congestion support).

Above the current price, the first resistance is at the price level of $0.323 (price congestion resistance). The second resistance level is at $0.346 (price congestion resistance). The third resistance level is at $0.370 (price congestion resistance) and is just below the bullish change level of $0.39.

The MACD on the daily chart shows a very flat profile and is suitable for a bullish cross of the lines. These lines move through very negative levels of the indicator so that a bullish cross would be more likely for a sideways development of the price than for price hikes.

The DMI in the daily chart shows us the Bulls with not much confidence in the current moment. Their profile is decreasing but very reactive to any bullish impulse of a certain amplitude. For their part, the Bears have been at the same levels of activity for weeks and continue to hope to see lower prices in the coming sessions.

ETH/USD Daily Chart.

 

ETH/USD is currently trading at the $91.05 price level after failing to recover to the $95 level in the last four days. The ETH/BTC continues to flirt with a positive movement of the Ethereum versus Bitcoin, and this influences the behavior of the ETH/USD pair.

Below the current price, the first support level is at $81.57 (price congestion support). The second level of support is at $70 (price congestion support). The third level of support is at $53 (price congestion support).

Above the current price, the first resistance level is at $95 (price congestion resistance). Above this price, two upside jumps await the ETH/USD. The second resistance is at $124 (price congestion resistance). The third resistance level is at $148.51 (Exponential Moving Average of 50 periods).
 

The MACD on the daily chart shows a slightly upward cross. The positive inclination is also weak. The lines move at very negative levels of the gauge, so the current structure is more favorable to sideways than to any upward attempt.

The DMI on the daily chart shows us the Bulls at minimum annual levels with some chance of recovery that has quickly lost strength. The Bears meanwhile remain at high levels of activity and are still confident in seeing lower prices.

 

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