Bitcoin price is showing signs of bottoming out and the beginning of a new uptrend. Although Bitcoin is rejected in the supply zone, this move will be followed by a massive surge that will add to the market value of the leading cryptocurrency. ETH and XRP also seem set for a bull run.
Bitcoin price hit a three-fold low at around $ 41,000 after accumulating liquidity below that level. As a result, the upward move caused Bitcoin to retest the 1-hour supply zone, which ranged from $ 42,790 to $ 43,037.
A critical close above this barrier will make it a breakout point and create the conditions for a new rally. Accordingly, it is likely to push Bitcoin price towards last week’s low of $ 45,874 or the next hurdle at $ 47.609.
Overall, this rally could lift the crypto king 12% and even 14% higher if the 200-day Simple Moving Average (SMA) is retested at $ 48,378.
Meanwhile, a key close below $ 39,487 will create a lower low, invalidating the bullish thesis.
ETH is showing significant strength as it bounces off the weekly support at $ 3,061. The uptrend has started, but the largest altcoin has to break above the 200-day SMA at $ 3,445 to move higher.
The price breaking the aforementioned barrier will pave the way for a retest of the supply zone, which extends from $ 3,675 to $ 3,862. If the bulls hold their ground, ETH can reach all the way to the weekly resistance at $ 4,066.
Price table ETH / USD 1 day | Source: Tradingview
Regardless of the bullish outlook, a break of the USD 3,061 support level could result in a retest of the next level at USD 2,712. Falling below this barrier leads to a lower low, which invalidates the bullish thesis.
XRP is in trouble as the price fluctuates around the daily demand zone, which is between $ 0.7 and $ 0.753. However, the cops came back and helped him jump higher.
At the time of going to press, XRP price looks like it is set to keep going up. However, the upside potential for the Remittance Token seems limited as there are multiple resistance hurdles at $ 0.994.
In conclusion, there is a chance Ripple’s coin could rise 13% to $ 0.865, which coincides with the 50-day SMA. Although unlikely, a break of this level would allow XRP price to retest the 200-day SMA at $ 0.951.
XRP chart/USD 1 day | Source: Tradingview
On the other hand, if the price closes below USD 0.7 daily it will create a lower low and invalidate the bullish thesis. If so, XRP could revert to the December 4th low of $ 0.604.
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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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