- Bitcoin in consolidation, but the improving technicals point towards a massive breakout above $20,000.
- Ethereum holding firmly to ascending triangle's hypotenuse ahead of a breakout to $700.
- Ripple sideways trading continues as buyers barricade $0.6 while the 50 SMA limits the upside.
The cryptocurrency market seems ready for another bull run after a mundane weekend session. The market is dotted mostly in green, with the significant digital assets leading the price action. Bitcoin reclaimed the position above $19,000 but still is struggling to sustain gains toward $20,000.
As discussed earlier, Monero (XMR) is among the biggest single-digit gainers after breaking out of an ascending triangle. On the other hand, Stellar (XML) looks ready to dump to $0.08 following a sell signal on the weekly chart.
Bitcoin eyes a massive breakout beyond $20,000
Bitcoin is getting ready for a significant upswing to price levels above $20,000, but first, the ongoing consolidation has to run its course. The flagship cryptocurrency is trading slightly above $19,300 while the seller congestion at $19,500 limits its upside.
The Relative Strength Index has reinforced the sideways price action by levelling marginally above the midline. Bitcoin bulls can push the price above $19,500, which will help validate the anticipated upswing past $20,000.
A constriction of the Bollinger Bands hints at a possible breakout in the coming sessions or days. Therefore, to be on the safe side, buyers must not allow BTC to dive under the Bollinger Bands' middle boundary. If an extra bear push comes to shove, the 50 Simple Moving Average must be guarded at all costs, as buyers can build another uptrend from this level.
%20(82)-637429294404694744.png)
BTC/USD 4-hour chart
On the flip side, massive losses will come into the picture if the price dives under the 50 SMA. This could also confirm a breakdown after the Bollinger Bands' squeeze. Tentative support areas include the 100 SMA at $18,600, the 200 SMA at $17,330 and late November's support at $16,500.
Ethereum holds firmly ahead of a potentially massive breakout
The smart contract has firmly held onto the ascending triangle support despite the multiple rejections from levels above $600. At the time of writing, Ethereum is trading at $595, as bulls look forward to a massive breakout towards $700.
The 50 SMA protects the immediate downside, preventing bears from gaining momentum and causing damage to the progress made since the crash on November 26. A break above the triangle's x-axis will call for gains to $700, perhaps catapulting Ethereum into trajectory eyeing $1,000.
%20-%202020-12-07T113939.143-637429294461263617.png)
ETH/USD 4-hour chart
Ethereum's uptrend will be sabotaged if bulls lose the ground above the 50 SMA. Besides, trading under the ascending trendline would be a bearish signal, calling the sellers to increase their entries.
The short-term price analysis is bearish, as seen with RSI's dip to the midline. The next support at $575, as highlighted by the 100 SMA, may be tested before completing the bearish leg to the 200 SMA.
Ripple price action remains numb ahead of a breakout
XRP is trading at $0.61 after holding above $0.60 during the weekend session. The mundane price action has brought indecisiveness in the market – the 50 SMA limits Ripple's upside. The cross-border token must close the day above this crucial level.
On the other hand, the Relative Strength Index and the Bollinger Bands endorse the consolidation. However, the more the bands squeeze, the faster a breakout will come into the picture. Several resistance zones might slow down the upswing, including $0.65, $0.7 and $0.75.
%20(21)-637429294544532032.png)
XRP/USD 4-hour chart
On the other hand, a breakdown will be confirmed if XRP closes the day beneath the 50 SMA. Selling volume is likely to increase from this level, pushing Ripple further down.
If declines overshoot the anchor at the 100 SMA, XRP/USD might be forced into a length downtrend. Other support levels to keep in mind include $0.45, the 200 SMA and $0.3.
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
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.