- Bitcoin bulls are relentless in the fight for highs above $40,000 while the medium-term target at $50,000 beckons.
- Ethereum is currently in buyers’ hands, but a rising wedge points at a possible reversal in the near-term.
- Ripple finally breaks out of consolidation but must close the day above $0.3 to sustain the uptrend.
It feels like song and dance in the cryptocurrency market, with the total market capitalization having clocked $1 trillion. The majority of crypto assets are in the green at the time of writing. As reported earlier, some altcoins such as Stellar, Nano and Status seem to be outperforming themselves, perhaps sharing in Bitcoin’s limelight.
Bitcoin teases run up to $40,000 on hitting a new all-time high
Amid the surge to $1 trillion, Bitcoin spiked above $37,000, reaching a new all-time high of around $37,880. The flagship cryptocurrency is in a state of price discovery and no defined resistance apart from the new yearly high.
At the time of writing, Bitcoin is trading at $36,961 but remains exceptionally volatile. The Relative Strength Index is settling within the overbought region, suggesting that Bitcoin may well resume the push to highs above $40,000. Similarly, the price is trading above the 50 Simple Moving Average on the 4-hour chart, a significantly bullish indicator.
BTC/USD 4-hour chart
Bitcoin is trading between the new all-time high resistance area and the newly established support at $36,000. Closing the day above $37,000 could encourage more buyers to join the market and pull Bitcoin further up, perhaps even overshoot $40,000.
However, if Bitcoin makes a daily close under $36,000, massive sell orders may be triggered, opening the door for losses eyeing $34,000 and $30,000, respectively.
Ethereum setting up a massive retreat
Ethereum recently hit a new yearly high at $1,234 but retreated to seek and confirm support at the pivotal $1,200. The ballistic rally saw the pioneer altcoin push against several obstacles to settle above $1,000. At the time of writing, the bulls’ main goal is to overcome the immediate resistance and push Ether to new yearly highs, perhaps at $1,500.
A glance at the moving averages suggests that Ethereum is in bullish hands; however, a forming rising wedge pattern hints at a possible significant reversal. The pessimistic outlook forms when an asset’s price ascends with pivot highs and lows while converging at a single point referred to as the apex.
A breakdown usually occurs before the trendlines converge. The typical breakdown is mostly confirmed by decreasing volume (highlighting a divergence between volume and price). Breakdowns are generally fast and drastic, which could see ETH spiral to $900.
Ripple price resumes the uptrend as consolidation hits the elastic limit
XRP has suffered dramatically in price action amid the incredible strides made by its peers over the last 21 days. The cross-border payments company has been grappling with lawsuits left, right and center in addition to Coinbase delisting its native token XRP.
As the storm settles, XRP has been struggling to remain stable. A glance at the chart shows that buyers are finally taking control of the price. A breakout due to the Bollinger constriction occurred as predicted on Thursday. XRP/USD was able to spike above $0.30, but it is currently trading at $0.296.
The odds seem to favor the bulls at the time of writing, even with the Relative Strength Index currently in the overbought region. Furthermore, the token has stepped above the 100 SMA and appears to be getting ready for a rally targeting $0.4.
XRP/USD 4-hour chart
It is worth noting that XRP must end the day above $0.3 to sustain the uptrend eyeing $0.4. On the flip side, trading under this same level may call for more selling orders. If enough volume is created, XRP may plunge to retest the support at $0.25.