Top 3 price prediction BTC, ETH, XRP: torn between the good and the ugly
|- A variety of trends influences the cryptocurrency market.
- BTC/USD struggles to confirm the breakthrough above 61.8% Fibo.
- Altcoins are moving in sync with the digital king.
The cryptocurrency market has been rather quiet during early Asian hours on Friday. However, just as usual, this calm may precede a storm ready to erupt into the end of the week.
On the good side
The cryptocurrency universe continues penetrating a traditional financial system. The trading platforms for digital assets keep on adding support for various fiat currencies. In the latest development, the US-based cryptocurrency exchange Kraken expanded its fiat-based crypto trading services with the Swiss franc. Thus, with the new addition, the exchange now supports six fiat currencies: US dollar, Canadian dollar, euro, British pound, and Japanese yen and Swiss Frank.
Also, recently, the world's largest cryptocurrency exchange Binance, included Russian Ruble and Ukrainian Hryvna to the list of supported fiat currencies, which is clear evidence of the growing crypto awareness in those countries.
On the ugly side
On Thursday, EU finance ministers agreed on a tough stance towards Libra and similar private digital currencies. The European authorities are not going to allow those types of money in Europe until all the associated risks and concerns are removed.
The ministers said in a joint statementˆ
No global stablecoin arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.
While they referred mostly to Facebook'sFacebook's Libra and fiat-backed stabelcoins, the industry might feel the heat as the regulators send clear signals that they won't tolerate any competition from the private sector.
BTC/USD, the technical picture
Bitcoin (BTC) is still pretty much indecisive at this stage. The price of the first digital coin is moving to and fro around the pivotal $7,350 created by 61,8% Fibo retracement for the move from $3,226 to $13924. A cluster of intraday resistance levels at $7,400 caps the recovery and hamper Bitcoin'sBitcoin's attempts to verify the breakthrough.
Once $7,400 is out of the way, the upside momentum may gain traction with the next focus on $7,700 and December 4 high of $7,770. This barrier stands on the way to psychological $8,000. Notably, BTC/USD has been trading below $8,000 since November 21 with bullish sentiments waning each week.
On the downside, $7,000 is the first barrier that should stop the sell-off. However, a sustainable move below this will unleash bearish potential and push the price towards $6,700 ( the lower line of the daily Bollinger Band).
BTC/USD, the daily chart
ETH/USD, the technical picture
While ETH/USD has recovered from the recent low of $132.58, it is still moving within the long-term downside trend with little signs of the upcoming reversal. The coin desperately needs to return to the previous consolidation range that had been dominant in the last three months until it was broken at the end of November. The lower border of the range is located at $159.40 and followed by another strong resistance of $160.00.
On the downside, the initial support is created by $144.00. This support coincides with the lower line of 4-hour Bollinger Band and the lower boundary of this week's channel. A sustainable move below this barrier will attract new sellers to the market and push the price towards a psychological $140.00. The ultimate support is created by the above-said low at $132.58.
Considering the flat RSI (Relative Strength Index) on a daily chart, the strong upside looks unlikely at this stage.
ETH/USD, the daily chart
XRP/USD, the technical picture
XRP/USD is moving in sync with the market. The third digital coin has been trading below $0.2300 since the end of November amid worsened, market sentiments. The outlook for the coin remains bearish as long as it stays below mentioned $0.2300.
The initial support is located at $0.2200; however, an even stronger barrier is seen at $0.2100 as it separates is from November 25 low of $0.2014. This area is likely to stay unbroken due to strong speculative interest clustered around it.
On the upside, a strong move above $0.2300 will allow the third-largest coin to regain strength and proceed to $0.2500, which is the lower boundary of the previous consolidation channel.
XRP/USD, the daily chart
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