- The second-tier altcoins continue to outperform.
- The major coins enter a sideways pattern with a bearish bias.
- ETH/BTC has a potential to regain losses.
The market returned to the sidelined trading after sharp movements during the previous week. Bitcoin and all major altcoins are hovering close to the recent congestion levels as the market struggles with the direction at this stage. Bitcoin dominance dropped below 62.00% as smaller altcoins have been outperforming the market recently. While it is still too early to declare the beginning of altseason, but traders are obviously demonstrating growing interest in second-tier assets.
At the opening of the European session, Bitcoin is trading below $9,200, unchanged since the start of the day. Ethereum settled at $238.00 after a short-lived attempt to move above $239.00, while XRP is changing hands at $0.1980.
Ampleforth (AMPL) is the best-performing asset out of top-50 with nearly 20% of gains on a day-to-day basis. The coin with the current market value of $269 million was a no-name coin until the end of June. Since that time the coin more than doubled in value.
Stock markets are drifting lower, however, the situation is still tilted to the bullish side. Another portion of positive news about vaccines or economic developments will trigger recovery and potentially push the major indices to new highs.
ETH/BTC Daily Chart
ETH/BTC is currently trading at 0.0260. The cross bottomed at $0.02533 on July 16 and managed to settle above 0.026 which now serves as a support. The 50-day Simple Moving Average is losing momentum and is now on its way to 0.02519. If it is broken, the price may drop to 0.024 with 100-day located above this area.
Above the current price, the first resistance level is at 0.02640, then the second at 0.0270 and the third one at 0.0295.
Below the current price, the first support level is at 0.02520, then the second at 0.02482 and the third one at 0.0245.
BTC/USD Daily Chart
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BTC/USD is currently trading at $9,180. Bitcoin has been locked below $9,200 since the previous week, which can be interpreted as a short-term bearish signal. The upward-looking 100-day SMA reinforces the psychological barrier of $9,000 and separates the coin from an extended decline towards 200-day SMA at $8,550 zone where there is already support for price congestion.
Above the current price, the first resistance level is at $9,200, then the second at $9,500 and the third one at $10,000.
Below the current price, the first support level is at $8,950, then the second at $8,550 and the third one at $8,400.
ETH/USD Daily Chart
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ETH/USD is currently trading at $238 and remains at the price congestion support level. The 50-day SMA coupled with the middle line of the daily Bollinger Band serve as an initial support at $236. If it is broken, the sell-off may be extended towards 100-day SMA100 at $216; however, the critical barrier is created by 200-day simple moving average on approach to $200 level, which is unlikely to be taken out from the first attempt/
Above the current price, the first resistance level is at $240, then the second at $260 and the third one at $270.
Below the current price, the first support level is at $216, then the second at $200 and the third one at $185.
XRP/USD Daily Chart
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XRP/USD is currently trading at $0.1980 as it continues to develop the long-term bearish scenario from the recent high of $0.2056 (July 9). The 100-day SMA at $0/1956 serves as an initial support level that may slow down the bears and trigger the recovery towards psychological $0.2000. Once it is out of the way, the upside is likely to gain traction with the next focus on 200-day SMA on approach t0 $0.2100.
Above the current price, the first resistance level is at $0.2000, then the second at $0.2015 and the third one at $0.21.
Below the current price, the first level of support is at $0.1956, then the second at $0.1900 and the third one at $0.1800.