The inclement war that regulators of the United States have against Blockchain projects and the main cryptocurrencies as displayed by Telegram, is the key point that fundamentally caused a decline in the purchase orders of the main crypto assets.
The market, at the close of week 41 year 2019, presents a more optimistic picture in most of top 25 most important cryptocurrency in the market.
Bitcoin slightly increased above the 8k psychological barrier and it is now possible to think of a small bullish squizz for the next few hours and the third week of the last quarter of 2019.
The total market cap. of the whole crypto market is about USD 220 billion, with a growth of 1.17% in the last 24 hours, as Bitcoin dominates the scene with 66.3%, and the fear \ greed index decreases slightly to 37 \ 100. Let’s see how strong the three main market references are during this weekend.
BTC / USD
Bitcoin, the main reference in the market at the time of writing, trades above 8k after haven drooped to the minimum of USD 7,960 this week. It is now recovering to avoid falling deeper towards 6k levels as many analysts expect.
The triangular pattern formed by the cryptocurrency in the XBTUSD @ 1D chart, for now, has a key support at USD 7,980 that should avoid bankruptcy to think about a recovery of the wedge asset created with the option to break at the moving average levels @ 8,323.84.
The decrease below the 10k levels that occurred at the end of last month will possibly be reversed as long as it manages to break its resistance created in the Fibonacci levels at 23.6% (USD 9,198.29). This will be possible to if and only if it remains above the projected moving average, breaking the wedge that has halted its vertiginous decline in the last two weeks.
For now the RSI is in the sales area, indicating that the market is riddled with much uncertainty, which has to do with the sanctions from regulatory authorities trailing renowned projects such as Libra and Gram.
The next two closing candles for this weekend will be crucial, to know where the asset can be directed. So eventually a lower wedge break would generate a cascade fall, so it is recommended that operators keep the stops losses activated in the USD 7,600 zone.
This year, Bitcoin has generated a double fund located at the limit of Fibonacci levels of 23.6% after its peak to $13.8k mid-year. So the formation of a new fund will take a long time after that of the bear market, so that the stronger the base, the stronger the eventual rupture will be.
ETH / USD
The most important altcoin is trying to overcome the resistance of the top from the descending wedge at USD 180.00 levels, and at the same time it struggles not to fall to lower levels. ETH’s immediate support stands at USD 169,684.
Its small corrective wave of Elliot projects in the most optimistic scenario of a positive change, and this will happen if ETH manages to break the projected pattern to levels of TP1 @ 195.54, after its inflection point created in the last doji at point B.
Ethereum continues to create lower lows after two spin balls were recorded in the months of July and September 2019. This led the cryptocurrency to recede and lose the progress it had made in time.
However, the moving averages project a slight increase and many are anxious that the altcoin did not break down in a cascade fall to strong support levels at USD 150.00 area, which we recommend as the stop losses to operate.
Although the RSI is pessimistic, gradually descending in the last weeks towards the sales area, many consider it appropriate to enter and wait for a performance recovery.
XRP / USD
The token of the Ripple company presents an ascending channel at press time. XRP looks to be signalling a successfully breakout in the next few hours if it manages to overcome the barrier established at USD 0.3144 levels as we can see in the respective graph. The upward crossing of the moving averages has generated a solid and quite clear support for XRP at the USD 0.262 levels, far away from the current value quoted by the token.
Unlike Bitcoin and Ethereum, XRP broke its downward trajectory in the last week of September 2019 and since then, its wedge has been quite strong with a support at USD 0.233 that does not seem to register again in the medium term. The optimistic break above the resistance line of the downstream channel could make many investors think of a recovery for the token to TP1 levels @ USD 0.403 by mid-Q4 2019.
The RSI is in the positive zone and this shows that buyers have the advantage. The balance will tip in favor of the bulls if the pair breaks and closes above USD 0.3144. Just above is the resistance line of the descending channel, with which once overcome investors expect the trend to change permanently for the XRP token.