- Cryptocurrencies have been staging a comeback which seems limited.
- Bitcoin, Etehreum, and Ripple may need to fall and hold onto support before shooting higher.
- Here are the levels to watch according to the Confluence Detector.
The doomsayers projecting a downfall of around 30% in cryptocurrencies have been defeated – coins have staged a comeback with Bitcoin leading the way by topping $8,000. However, this comeback may certainly be ephemeral and not the start of a new bullish wave.
Bitcoin has yet to bottom out, Ethereum must first hold onto the edge, and Ripple has to find the right place before rising. Crypto bulls need to wait for the pullback to conclude and hope that it finds support and does not fall to lower ground. Only after finding support – and holding onto it – can cryptos move higher.
Let us examine the critical lines for the top three digital assets.
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD must hold onto $7,666
Bitcoin may need to fall down to $7,666 which is the where the granddaddy of cryptos faces a cluster of potent support line including the Fibonacci 38.2% one-month, the previous 4h-low, the Bollinger Band 4h-Lower, and the Fibonacci 38.2% one-day.
If it managed to hold onto this line, the first upside target is $8,200 where the BB one-day Middle and the Fibonacci 23.6% one-month converge.
BTC/USD may shoot higher and hit $8,742 which is where the Pivot Point one-week R1 meets the price.
ETH/USD has two lines of strong support
Ethereum‘s first support at $238 where we see the convergence of the Simple Moving Average 10-1h, the Fibonacci 61.8% one-day, and the SMA 200-4h.
The second support line is at $235 where the previous 4h-low, the Fibonacci 38.2% one-day and the previous weekly low meet price.
ETH/USD faces initial resistance line at $244 where the juncture of the following lines awaits Vitalik Buterin’s creature: the Fibonacci 23.6% one-week, the previous 1h-high, the SMA…