Crypto Technical Outlook: Bitcoin, Ether, Ripple during Critical Levels

Cryptocurrencies have been in giveaway tumble for a past few days with a new sell-off in prices holding a crypto-bloc towards a yearly lows. Here are a levels to know in Bitcoin, Ethereum and Ripple as prices proceed vicious make-or-break support thresholds.

Bitcoin Daily Price Chart (Log)

Bitcoin Price Chart - Daily Timeframe

Notes: Earlier this month we remarkable that, “The risk stays reduce while next 11171 with basic trendline insurgency extending off a record highs serve highlighting this region. Interim support stays solid during 9222 with a mangle reduce targeting a 200-day relocating normal during ~8915 and 8159 where a 61.8% retracement converges on a Mar 2017 trendline support.” Prices are contrast this segment now with today’s pitch low reversing neatly off 2018 low-day tighten during 7737 (low purebred during 7682) – It’s make-or-break here for a cryptocurrency near-term.

Note that daily RSI incited forward of a 60-threshold for a past dual months with this decrease holding a movement signature behind next 40. The stream movement form continues to prominence a downside risk for prices.

Bottom Line: Bitcoin prices are contrast vital support- demeanour for a greeting here with a weekly tighten next risking estimable waste for a cryptocurrency towards support targets during a yearly close-low during 6874 and 6039. Interim insurgency now stands during 9222 with a crack above 11171 still indispensable to symbol resumption of a broader uptrend.

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Bitcoin IG Client Positioning

Bitcoin Trader Sentiment

  • A outline of IG Client Sentimentshows traders are net-long Bitcoin- a ratio stands during +2.79 (73.6% of traders are long) – bearishreading
  • Long positions are 3.3% aloft than yesterday and 8.6% aloft from final week
  • Short positions are 3.4% reduce than yesterday and 1.3% reduce from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests Bitcoin prices might continue to fall. Traders are serve net-long than yesterday and final week, and a multiple of stream view and new changes gives us a stronger Bitcoin-bearish contrarian trade bias from a view standpoint.

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Ether Daily Price Chart (Log)

Ethereum Price Chart - Daily Timeframe

Notes: In my prior Cryptocurrency Technical Outlook we remarkable that, “Ethereum prices have continued to connect only next simple trendline insurgency fluctuating off a Feb highs. Key near-term support is eyed during 7670/83 where a yearly low-day tighten converges on a 50% retracement of a convene off a lows.” Ethereum prices pennyless next this threshold reduction than a week after with a successive decrease holding out basic trendline support fluctuating off a Jul lows.

Ether is now contrast a vicious near-term support connection during 556 where a 2018 lows converges on a slope line fluctuating off a Jun highs. Note that daily RSI is also contrast 30 and a mangle next these levels would risk accelerated waste towards a Nov high during 499 and some-more a poignant support connection at 405/24.

Bottom line:Ethereum is contrast a connection support section as movement is contrast a mangle into oversold. The evident downside disposition is during risk while above this threshold with a crack above 783 indispensable to assuage serve downside pressure. A mangle reduce risks a dump towards a Jun highs only above 400.

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Ripple Daily Price Chart (Log)

Ripple Price Chart - Daily Timeframe

Notes: At a Mar open we remarkable that, “given new cost action, a mangle next 7600 would expected see accelerated waste for a cryptocurrency with such a unfolding risking a dump towards a 200-day relocating normal during ~6400.” Ripple prices are now contrast connection support around 6475 where a 88.6% retracement of a Feb allege converges on a median-line of a descending pitchfork formation fluctuating off a 1/18 high.

Bottom line: Ripple is contrast BIG support here with a evident short-bias during risk while above today’s lows. Initial insurgency stands behind during a 2018 low-day tighten during 7600 with a crack above a Mar high-day annulment tighten during 9395 indispensable to change a broader concentration higher. A mangle next this support section keeps a short-bias in play targeting a yearly lows during 5729 corroborated by 4905.

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

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