- Bitcoin bull run ultimate test is the reclamation of $40,000, but losses to $20,000 are likely if it fails.
- Ethereum is on the verge of a technical breakout that would see ETH rise to $1,400.
- Ripple kickstarts the uptrend after stepping past the 100 SMA on the 4-hour chart.
Cryptocurrencies in the market seem to be resuming their uptrends, following significant losses in the previous weeks. Uncertainty in the market was brought about by Bitcoin’s swings to $40,000 and back to $34,000.
However, as covered over the weekend, some altcoins have continued to ignore BTC’s erratic price movements, posting incredible gains. Chainlink (LINK), Polkadot (DOT) and Yearn.Finance (YFI) are some of the tokens performing well and independent of Bitcoin.
Bitcoin should retake $40,000 or risk diving to $20,000
Bitcoin’s uptrend to $40,000 in the offing, but the price must rest above the 50 Simple Moving Average on the 4-hour chart. Moreover, the immediate support at $36,000 is required to hold as bulls shift focus to $40,000.
According to strategists at JPMorgan Chase & Co, if Bitcoin does not recover to $40,000 soon, it would tumble further. Speculators and trend-following investors are likely to search for altcoins that are performing better, hence adding to the selling pressure.
BTC/USD 4-hour chart
Notably, Bitcoin may extend the bearish leg under $30,000 if recovery to $40,000 becomes an uphill battle. The selling pressure is likely to continue in the coming weeks, with $20,000 being the ultimate support.
Ethereum poised for massive liftoff to $1,400
Ethereum is on the verge of a significant breakout that may see it retest the recent yearly high at $1,350. The largest cryptocurrency has been on an upward roll after confirming support at $900 early last week.
The uptrend is likely to have been validated after the price reclaimed the 50 SMA on the 4-hour chart. Meanwhile, the ongoing bullish price action requires that Ether closes the day above the resistance at $1,250. Moreover, price action beyond $1,400 may see the bullish leg stretch to $1,400.
ETH/USD 4-hour chart
The ascending parallel channel’s middle boundary is likely to be tested. However, if a breakout at this level fails, ETH may begin another downtrend and perhaps revisiting support at the 50 SMA. Trading below the channel would extend the bearish action as selling activities surge. In this case, Ethereum could seek refuge at $1,100 and $1,000, respectively.
Ripple resumes the uptrend on reclaiming 100 SMA
XRP explored price levels marginally under $0.27 after the recent rejection at the 50 SMA. Selling pressure under $0.3 also continued to rise while losing support at $0.29 saw the technical picture diminish even more.
At the time of writing, a recovery seems to be starting and may continue if Ripple holds above the 100 SMA. Besides, a spike to levels above $0.3 will be validated if XRP/USD closes the day above the 50 SMA.
For now, the least resistance path is upwards, as the Relative Strength Index confirms. The expected break past the midline will call for more buy orders, thus creating enough volume to sustain the rally.
XRP/USD 4-hour chart
Ripple is still not out of the woods yet, at least as long as XRP trades under the 50 SMA and the critical barrier at $0.3. The buyer congestion at the 100 SMA must also remain intact; otherwise, losses back to $0.27 and the primary support at $0.25 may return into the picture.
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