Bitcoin price hovers around a key level after testing liquidity above that level. This suggests that BTC will consolidate here before rising any further. Ethereum, Ripple have been closely following the leading cryptocurrency and could soar to higher highs soon.

Bitcoin is facing a crucial moment

BTC broke Monday’s high of $ 47,565 to hit a high of $ 49,527. While BTC could soar higher and retest the $ 50,000 psychological level, traders must be on the lookout for the possibility that the benchmark cryptocurrency could fall, reaching Monday’s low at $ 45,550.

If the bulls can soak up the profit-taking pressure from short-term traders, there is a good chance BTC will retest $ 50,000 and hit last week’s highs of $ 50,083. In some cases, Bitcoin price can go as high as the resistance level of $ 53,618. Marks an increase of 8.6% compared to the current price.

BTC / USDT 3-hour chart | Source: TradingView

Increased profit taking by traders could end profits for the past 48 hours. That move could cause BTC to hit Monday’s low of $ 45,550 or re-scan last week’s low of $ 45,438.

ETH breaks out of a bullish pattern

ETH has been forming a descending wedge since November 28th. This is a bullish pattern and usually leads to a breakout in most cases.

The technical formation predicts a 16% rally to $ 4,533, which is found by connecting the height of the wedge to the breakout at $ 3,912.

ETH has now broken out above this pattern and is about to retest the $ 4,155 resistance area. Initially, however, traders can expect a retracement to $ 3,912 or below to $ 3,823 (Fib retracement 0.62).

A rebound from these levels will reinforce the breakout, showing that ETH can rise 16% to $ 4,535.

ETH / USDT 4-hour chart | Source: TradingView

If Ethereum price hits a lower low below $ 3,669, which coincides with the low of the trading range, it would invalidate the bullish thesis. In this case, ETH can retest the strong support at USD 3,415.

XRP is rising and could test the key resistance again

XRP broke the downtrend line on December 18, rising 19% to a high of $ 0.971. That strength could help XRP retest critical resistance at $ 1,015.

However, the chances of a breakout above this level are slim, especially as BTC could experience a minor retracement.

Due to the correlation between the two, the XRP price could move in line with the benchmark cryptocurrency and experience a correction. In addition, short-term traders can take profits after XRP rose 19% shortly.

XRP / USDT 4-hour chart | Source: TradingView

If this drop pushes Ripple price below $ 0.688, it will hit a lower low, invalidating the bullish thesis.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page