- Major cryptocurrencies are attempting a recovery, Bitcoin stays above $11,000.
- Top 3 widely traded coins to face key resistances, keeping the upside capped.
The most dominantly traded cryptocurrencies are seeing a pause in the recent downslide, as the bulls lick their wound, wrapping up a volatile trading week. A break above the $ 12000 mark continues to remain elusive for the world’s no. 1 digital coin, Bitcoin, which stands at a market capitalization of $ 204.24 billion. The total market capitalization of the top 20 cryptocurrencies now stands at $296 billion, as cited by CoinMarketCap.
In order to gauge the key technical levels for trading the top 3 cryptocurrencies in the week ahead, let’s understand what the Confluence Detector point out.
BTC/USD: $ 11,475 – a tough nut to crack
Having tested the 11,100 level, Bitcoin jumped back above the support-turned-resistance near 11,400 levels, but the upside lacks follow-through, as sellers continue to lurk near 11,475 region, the strong confluence of the 4-hour Simple Moving Average (SMA), hourly 200-DMA and Fibonacci 38.2% retracement of the daily price action.
If the bulls manage to break above the last, the recovery in the BTC/USD pair will gather steam, with 11,600 seen as the next resistance, where the Fibonacci 61.8% retracement of the monthly price action.
To the downside, should the price fail to hold the 11k barrier, fresh declines could counter te immediate support of the daily pivot and 4-hour SMA that coincide around 10,800/750 levels.
ETH/USD: Focus on a close above $ 214 levels
Ethereum continues to get sold-off at higher levels above the 210 region, as buyers sense caution ahead of the critical resistance placed near 214.00 levels on the 15-minutes chart, the Fibonacci 23.6% retracement of the weekly decline. Buying interest is likely to intensify above that level, with the next upside targets seen at 217.46 and 219/220, 4-hourly 100-SMA and Fibonacci 38.2% retracement of the weekly decline.
On the flip side, the previous week’s low near 207 handle is key support. The next support will come into play at 204.10 region, the Bollinger band support on daily sticks.
XRP/USD: Path of least resistance looks to the downside
Ripple has managed to take out a cluster of resistances near $0.3000 – the previous high on the 15-minutes chart, Fib 23.6% retracement of the weekly decline and Fib 38.2% retracement of the daily price action. Above that level, next strong resistance aligns at $0.3050, the confluence of the 5-DMA and Fib 38.2% retracement of the weekly price action.
The path of least resistance is likely to be the downside, despite the latest recovery attempts, as the coin finds limited strong support levels capping the potential downslide. 0.2978 looks like the key support, the convergence of several SMAs on 15-minutes and hourly sticks.
Author: Dhwani Mehta