- The battered bulls take a step back in a bid to regroup and plan the next move.
- Bitcoin breaks the support at $7,800; the downward momentum targets $7,700 in the short term.
- Ethereum and Ripple struggle to contain the losses above $135 and $0.20 support areas, respectively.
The rollercoaster rides in the cryptocurrency market intensified this week. The market generally corrected higher with digital assets such as Bitcoin and Ripple significantly growing in value. The majority of cryptocurrencies are trading substantially higher than the levels posted in December.
Many experts believed that the surge in the price of cryptocurrencies, particularly Bitcoin was driven by the tension in the United States due to the attacks with Iran. However, as the tension cleared, Bitcoin reversed the trend, breaking under the $8,000 level. Other cryptos have followed in the footsteps of BTC reminiscent of the red paint across the market.
Bitcoin price update
The surge in Bitcoin price hit a snag on touching a strong resistance line. The descending trendline commenced after BTC hit highs around $13,800 in June 2019. Its impact on recovery cannot go unnoticed and is likely to continue limiting the advances made by the bulls.
In the meantime, Bitcoin is trading at $7,730 after breaking the last weekend’s support at $7,800. Fortunately, the price is sitting above the 50-day SMA (key support line). On the other hand, the RSI’s downward trend puts the support at $7,700 at great risk. To be on the safe side, Bitcoin must defend the 50-day SMA if not $7,700 to avert possible losses to $7,000.
BTC/USD daily chart
-637142340120712497.png)
Ethereum price update
Ethereum is struggling to stay above the support at $135 after losing 1.5% of its value on Friday. The price has also corrected under the 50 SMA on the 4-hour chart. The RSI signals that the downward momentum is here to last, besides ETH/USD is not oversold. On the other hand, the main trendline support is in line to offer support if losses grind towards $130.
ETH/USD 4-hour chart
-637142339515400141.png)
Ripple price update
Ripple is also trying to stay above the key support at $0.20 after the rejection that started at $0.225 gained momentum in the last 24 hours. An immediate support is offered by the 50-SMA on the 4-hour chart. However, there is a big chance that XRP will retreat under $0.20 in the near term. The downtrend is supported by the MACD’s bearish cross and the return into the negative zone.
XRP/USD 4-hour chart
 (79)-637142338791494645.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Solana price pumps 7% as SOL-based POPCAT hits new ATH, JITO becomes largest protocol on TVL metrics
Solana (SOL) price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
High hopes rouse for TON coin with Pantera as its latest investor
Pantera aims to introduce crypto to the masses with investment in TON blockchain. The TON blockchain has received significant recognition among crypto investors following recent partnerships and integrations. TON could see a rally following Pantera's recent investment.
Ethereum to break out of bearish move, ETH ETFs unlikely in 2024
Ethereum shows signs of recovery despite a second consecutive day of poor performance in Hong Kong's spot Ethereum ETFs. Bloomberg analyst James Seyffart has also shared that a spot ETH ETF may not happen in the US in 2024.
Wasabi Bitcoin privacy mixing service to shut down starting June 1, zkSNACKs cites legal certainty concerns
zkSNACKs, the company pioneering the development of Wasabi Wallet, has revealed plans to shut down its Coinjoin coordination service, effective from June 1, 2024.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.