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Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC blasts above $29,000, XRP claws back some ground

  • Bitcoin jumped above $29,000 for the first time in history. 
  • Ethereum tested water above the critical resistance of $750.
  • Ripple's XRP attempted a recovery despite gloomy fundamentals.

The cryptocurrency market celebrates the New Year with new highs. Bitcoins jumped above $29,000 and set a new all-time high at $29,321 during early Asian hours. Since that time, the pioneer digital asset has retreated to $28,800, though it is still 3.5% higher on a day-to-day basis. On a weekly basis, BTC gained over 23%. ETH attempted a move above $750 but failed to hold the ground while XRP is hovering around $0.224, having recovered from a massive sell-off to $0.17 on Tuesday, December 29. Other altcoins out of the top-50 are mostly bullish. 

The total capitalization of all digital assets in circulation settled at $758 billion. An average daily trading volume is close to $177 billion. Bitcoin's market dominance edged to71%.

Santa brings new gifts to BTC holders

Bitcoin jumped to a new all-time high above $29,000, only to retreat to $28,800 by press time. Despite the correction, the coin retains positive bias both on the short-term and long-term timeframes. The rally was triggered on Wednesday, December 30, when the US President Donald Trump endorsed the second stimulus bill worth $900 billion. As the FXStreet previously reported, many crypto twitter analysts believe the Americans will consider investing their stimulus checks in Bitcoin, the most profitable asset of 2020. A similar trend was noticed during the first helicopter money in April when the US-based cryptocurrency exchanges saw an inflow of first-time deposits worth $1,200.

From the technical point of view, BTC may be vulnerable to the short-term correction as the TD Sequential indicator has developed a sell signal in the form of a nine green candlestick on the 4-hour chart. If the pattern is confirmed, the correction may gain traction with the first stop at $27,800. This former resistance was verified as support on December 30. If it holds the ground, BTC bulls will make another attempt to send the price above $29,000 and, potentially, to the ultimate goal of $30,000.

BTC, 4-hour chart

BTC, 4-hour chart

In/Out of the Money Around Price (IOMAP) data confirms that the price sits on top of a strong support area. Over 400,000 addresses purchased 325,000 BTC from $27,900 to $28,700. If it gives way, BTC may extend the decline towards bigger support at $26,800. This area has the potential to absorb the bearish pressure.

BTC, In/Out of the Money Around Price (IOMAP)

BTC, In/Out of the Money Around Price (IOMAP)

On the upside, once $29,000 is out of the way, BTC will re-test the all-time high of $29,321 and aim at the next psychological barrier of $30,000.

ETH takes another step closer to new records

ETH bulls attempted s break above a critical resistance area of $750 with 0.5 Fibo retracement level for the downside move from January 201 high to December 2018 low located on approach. ETH touched a new 2020 high at $759 and retreated to $759 as the upside momentum faded away.

On the intraday charts, ETH is supported by 1-hour EMA50, currently $735. This upside-looking line has been limiting ETH decline since December 24. Once it gives way, psychological $700 will come into focus. The short-term trend remains bullish as long as the price stays above this area. A sustainable move lower will trigger the sell-off towards $666 (1-hour EMA200).

ETH, 1-hour chart

ETH, 1-hour chart

On the upside, ETH bulls still need to clear $750 before they can aim at $800. 

Ripple re-gains some ground above $0.22

XRP recovered from the low of $0.17 hit on Tuesday, December 29. At the time of writing, the token is changing hands at $0.224, having gained over 6% on a day-to-day basis. Despite the recovery, it is still down 22% on a weekly basis.

Meanwhile, Binance.US announced the decision to delist XRP due to the litigation issues between Ripple and the US Securities and Exchange Commission (SEC). The token will become unavailable for trade and deposits starting from January. Currently, over 15 cryptocurrency companies, including Coinbase, suspended XRP trading. Also, FXStreet previously reported that the US-based Coinbase faced a class action lawsuit for offering XRP for trading and earning commissions on XRP transactions.

From the technical point of view, the price needs to recover above $0.22 to mitigate the immediate bearish pressure. This barrier served as the former channel support that limited XRP's decline since the end of July. If it is verified as a resistance, XRP may resume the descent towards the psychological $0.2 and $0.175. 

XRP, daily chart

XRP, daily chart

On the upside, a sustainable move above weekly EMA50 at $0.25 will improve the technical picture and allow for a further recovery towards daily EMA200 at $0.295 and the channel resistance of $0.32. 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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