- Bitcoin comfortably reclaims the ground above $50,000 amid the upswing toward the all-time high.
- Ethereum settles above $1,600 head of the anticipated breakout to $2,000.
- Ripple is getting closer to a breakout following an extended consolidation period.
The cryptocurrency market seems to be flipping bullish after Bitcoin made a real move above $50,000 on Wednesday during the European session. BTC's move also poked Ethereum bulls to join the market from the sidelines, pushing the price past $1,600. Ripple has overcome the stubborn resistance at $0.45 while eyeing higher levels.
The rest of the market is shifting bullishly, led by cryptoassets like NEM (up 11%), Terra (up 20%), and Filecoin (up 10%).
Bitcoin bulls are relentless in the push to all-time highs
Bitcoin hit a record high of $58,000 in February but corrected significantly, tapping $42,800 on the downside. A recovery ensued, but price action has been lethargic in the last few days. However, with BTC having made another real break above $50,000, it is becoming apparent that the journey back to $58,000 is achievable.
Notably, the flagship cryptocurrency is trading above all three applied moving averages, including the 50 Simple Moving Average, the 100 SMA, and the 200 SMA. Short-term analysis reveals that the least resistance path is upwards, especially if Bitcoin breaks above the immediate hurdle at $52,000.
The bullish outlook has been validated by the Moving Average Convergence Divergence (MACD). This trend momentum indicator crossed into the positive territory, paving the way for more buyers to join the market. With the divergence between the MACD and the signal line increasing, Bitcoin's chances of swinging higher are broadening.
BTC/USD 4-hour chart
Traders must keep in mind that failing to break above the resistance at $52,000 could jeopardize the entire mission to $58,000. On the downside, holding above the 50 SMA support, highlighted at $50,000, is key to the uptrend and has to be defended at all costs to ensure that losses toward $42,800 are averted.
Ethereum steadies in its recovery to $2,000
Ether has stepped above $1,600 for the second time this week. The first acceleration failed to sustain the uptrend while losing immediate support. Ethereum dived to $1,450 before the ongoing recovery ensued.
The current price action is formidable because of two key things; overcoming the resistance at the 100 SMA and breaking above the descending parallel channel. This means that ETH is comfortably in the hands of the bulls and could rally to higher levels.
Meanwhile, holding firmly to the support at $1,600 will allow bulls the opportunity to plan the next attack mission at the crucial $1,700 resistance, as illustrated by the 50 SMA. The least resistance path is upwards, as confirmed by the up-trending Relative Strength Index (RSI).
ETH/USD 4-hour chart
If Ethereum fails to protect the short-term support at $1,600, overhead pressure is likely to soar, leaving bears with open-air to explore. The 100 SMA in line to absorb some of the selling pressure, but the primary support lies at $1,400 and $1,300, respectively.
Ripple nears a breakout amid consolidation
Ripple is on the verge of a breakout based on the Bollinger Bands. When this indicator constricts, it reveals that the asset in consolidation. Either a breakout or breakdown is expected following the squeeze.
In the meantime, XRP is trading at $0.45 after breaking above the 100 SMA. The Bollinger Band breakout will come into play if the price holds above this level, allowing bulls to focus on lifting Ripple higher.
Simultaneously, the MACD adds weight to the bullish narrative as it moves into the positive region. The indicator is also expanding the gap above the signal line, which is a bullish sign.
XRP/USD 4-hour chart
XRP will abandon the bullish outlook and start to drop in value if the 50 SMA and the Bollinger Band's middle boundary fail to hold as short-term support levels. Selling orders will be triggered if XRP slices through $0.4. Further down, the cross-border token could retest $0.35 and $0.3 before a significant recovery comes into the picture.
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