- Bitcoin achieved new yearly highs, retreated to confirm support at $15,400 before resuming the uptrend.
- Ethereum rally hit a wall slightly above $440, but higher support appears to be forming above $430.
- Ripple struggled to catch up with BTC and ETH, crowning the bulls' efforts with a spike past $0.25.
The cryptocurrency market caught yet another tailwind as the world waits for the United States to finalize the ongoing vote counting exercise. Bitcoin was the biggest winner, with the price going ballistic above $14,000, $15,000 and closing in on $16,000. Ethereum also joined the bullish party, spiking above $440.
The crypto space is mainly in green, with selected assets growing between 1% and 5% on the day. For instance, Litecoin stepped beyond $60 after making a 5% comeback. As discussed, NEO is on the verge of a breakout, already changing hands 3.5% higher on the day.
It is unclear how far the bullish cycle will go at the moment. However, buyers could remain in the cockpit for some time before a significant reversal comes into the picture.
Bitcoin bulls shift the focus to all-time highs
The flagship cryptocurrency is changing at $15,740 amid an ongoing recovery from the newly established support at $15,400. BTC was earlier rejected at $15,888 during its approach to the crucial $16,000 level. The new yearly high is currently the immediate resistance and if pushed into the rearview, the bellwether cryptocurrency might quickly rally towards the all-time high around $20,000.
According to the Relative Strength Index, Bitcoin is comfortably sitting in the bulls' hands. The RSI is still elevated in the overbought region. It is usual for the RSI to stay in this region longer, especially in bullish markets. Therefore, Bitcoin may continue rallying before a reversal comes into play.
BTC/USD 4-hour chart
It is worth mentioning that even though the RSI can hold in the overbought area for a long time, a reversal seems imminent, mainly if bulls fail to take down resistance at $16,888. Simultaneously, short-term support at $15,400 must be guarded at all costs; otherwise, a breakdown may ensue.
The moving averages are far behind the price, which means that strong support could be unavailable. Therefore, reversal is likely to be detrimental to the progress made this week, eyeing support between $13,500 and $14,000.
Ethereum ballistic uptrend takes a breather
The smart contract token rocketed above the resistance discussed at $420 on Thursday. Buyers assumed complete control over the price amid Bitcoin's surge to new yearly highs. Ether shot up towards $450 but stalled at $442. Meanwhile, a shallow retreat seeks balance above $430 before the crypto asset can eventually lift off to higher levels.
It is deducible that bulls are at the helm of the ongoing price action. The Moving Average Convergence Divergence, although a lagging indicator, highlights the immense presence of buying pressure. A bullish divergence above the MACD reinforces the intense bullish grip.
ETH/USD 4-hour chart
Reversals are common in bullish markets; therefore, traders should be aware that Ethereum could correct from the rally. If the resistance turned support at $420 fails to hold, Ether might quickly revisit the next support target at $400. The 100 SMA and the 50 SMA are in line to stop declines heading to $390, while the 200 SMA will prevent losses below $380.
Ripple has a clear path to $0.3
XRP continues to build on the momentum created after it was pushed out of the descending parallel channel discussed earlier this week. Trading above the 50 SMA also added credibility to the bullish outlook. Another spike past the 100 SMA and the 200 SMA in the 4-hour timeframe culminated in the ongoing bullish price action.
The cross-border cryptocurrency is doddering at $0.254 at the time of writing. Price action above $0.255 is likely to catapult XRP beyond $0.26 and towards $0.3. The RSI shows that the path of least resistance is upwards as it enters the overbought area.
XRP/USD 4-hour chart
If XRP fails to break the short-term resistance at $0.255 or the medium-term hurdle at $0.26, bears would most likely reclaim control over the price. On the downside, declines may overshoot the 200 SMA and the 100 SMA to test the major support presented by the 50 SMA at $0.24. It is worth noting that Ripple's most robust support lies at $0.23.
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