Blog > Industry > Articles

Bitcoin daily MACD positively crossing, but sustainable bounce some way off

Bitcoin (BTC/USD) halted a two-week plunge this past week, tentatively drawing in short term bulls looking to play the bounce off last week's oversold levels.
btcusd

Table of Contents

Bitcoin (BTC/USD) halted a two-week plunge this past week, tentatively drawing in short term bulls looking to play the bounce off last week's oversold levels.

The daily RSI, Stochastics and MACD are all bottomish, but should be viewed within the context of ongoing fragility in the weekly RSI and Stochastics, which have yet to decisively bounce off oversold levels.

Significantly, the weekly MACD white line continues sloping down, warning short term bulls to take quick profits this week. A more sustainable bounce is more likely following a longer-term basing pattern that could last months given the magnitude of the November selloff (which unwound pretty much all of the rally from the second half of last year).

 

Ethereum weekly/daily

Ethereum (ETH/USD) also spent the past week halting its own two-week slide, and is showing early signs of trying to bounce off near the psychologically key USD100 whole figure level.

Given the bottomish daily RSI, Stochastics and MACD, and the early bottomish weekly equivalents, risk:reward is becoming increasingly favorable for bulls. With ETH/USD having unwound all of the rally from the second half of last year, bears looking to establish fresh shorts should be cautious despite not seeing any major horizontal support levels below current levels.

A successful recovery of ETH/USD to the 200 whole figure level would be rather bullish, but bulls will first have to contend with the downtrend resistance line (on the daily chart) connecting the December 2017 peak and this past November's high.

 

XRP daily

XRP (XRP/JPY) spent this past week halting the prior 2 week slide, and is trying to form a higher low versus the August and September lows.

With the bottomish daily RSI, Stochastics and MACD, XRP/JPY may not retest the 2018 low, especially if positive sentiment from the increasingly bottomish Ethereum (ETH/USD) lifts sentiment across the broader sector.

Before bulls become too excited, they'll want to see the same bottomish patterns on XRP/JPY's weekly chart, which could take months to form given the severity of the November slide.

Share this article

  • Share on Twitter
  • Share on Facebook
  • Share on LinkedIN
  • Share on Telegram
  • Share Link

Related Articles

February 25, 2020

A Look into Unibright, a Blockchain Solution...

Unibright is a blockchain solutions provider enabling enterprise blockchain integration, tokenization and much more....
September 28, 2021

El Salvador Adopts Bitcoin - The Good, the...

When El Salvador’s president Nayib Bukele said his country “has the right to move towards the first world,” the...
January 17, 2022

Top 10 Crypto News Sites and Blogs to Follow...

The media has inflated to a point where it gets harder to find useful information every day. All the while being...