Bitcoin price is flat and tucked in between major weekly moving averages. This consolidation has a positive impact on ETH price, which establishes a bullish breakout pattern. On the flip side, XRP is starting to rise and preparing for a second rally.
Bitcoin price is in a slow downtrend and is trying to retest the 50-week Simple Moving Average (SMA) at $ 44,778. While this move causes BTC to fall around 3%, it could push the price higher and create a bullish outlook.
Bitcoin’s successful rebound from the SMA will pave the way for a retest of the 21-week SMA at $ 51,256 and even resistance at $ 53,709 if there is enough momentum. If buy orders continue to rise, the leading cryptocurrency is likely to hit $ 57,845.
Regardless, investors should note that the bullish outlook is pending a successful rebound from the 50-week SMA at $ 44,778.
BTC / USD 1 Day Price Chart | Source: TradingView
If Bitcoin price slips above the SMA at $ 44,778, it will most likely drop further to $ 40,596 to amass the liquidity below. A daily close below USD 44,778 would invalidate the above bullish thesis.
The ETH Prize has been outlining a falling wedge pattern since November 28th. The technical pattern is formed by connecting 3 lower lows and 4 lower highs formed based on trend lines during this period.
The model predicts a 16% price increase calculated by adding the distance between the first swing high and swing low to the breakout point at $ 3,912, bringing ETH to $ 4,533.
Assuming the price can bounce off the 70.5% retracement at $ 3,780, this round will rise 20%. As a result, investors need to be careful about the possibility of the retracement line reversing.
ETH / USD 4-Hour Price Chart | Source: TradingView
On the flip side, if ETH breaks the $ 3,780 and $ 3,740 barriers, the price is likely to fall to retest the range bottom at $ 3,669. A 4 hour chart candle that closes below this level creates a lower low, invalidating the bullish thesis.
XRP is currently consolidating around the $ 0.837 resistance for over a week. The increased buying pressure caused the price to climb 11%, causing a potential swing high to be hit at $ 0.917.
While the initial upward move is notable, it is possible for XRP to retreat before triggering another rally that is expected to return to the $ 0.837 support level. Assuming this happens, market participants can expect a 12% price rally and retest the $ 0.936 mark.
In some cases, XRP even extends this upward move to amass liquidity above $ 0.98 or $ 1.018.
XRP / USD 4-hour chart | Source: TradingView
Conversely, a break below the USD 0.837 support suggests buyer weakness. In this case, XRP will likely drop below the demand limit of $ 0.749 to raise liquidity there. A daily close below this level would indicate that buyers are unwilling to push prices higher and weaken the upward move.
You can see the coin prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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