- Bitcoin price sees bullish daily close above significant pivotal level.
- Ethereum price faces some resistance on the 55-day SMA, but bulls are still in charge.
- XRP price set for the start of the launch to $1.00.
Cryptocurrencies are getting back on their feet and making investors completely forget last week’s market turmoil. Bitcoin has seen a daily bullish close above the critical $44,088 level – a critical level to surpass to deliver more upside potential. Ethereum price action looks set to break the 55-day Simple Moving Average (SMA) at $3,267. And XRP is set to pop above $0.88, which opens the door for bulls to set a target at $1.00.
Bitcoin price sees bulls preparing for a 12% breakout by the weekend
Bitcoin (BTC) price is returning a perfect report card for this week as investors have finally learned to live with tighter market conditions and set their money back to work to gain profit. Bitcoin price action is the perfect proof of that with a very bullish reaction on February 04 and since then an unstoppable rally towards $44,088. With the daily close above that level – mentioned quite a lot these past few days in our articles on FXStreet – the scene looks set for bulls to chase the $50,000 barrier.
BTC price looks set for another breakout as it consolidates with lower highs and higher lows. The fact that the daily close above $44,088 happened yesterday proves bulls are in control and will keep a tight lid on any profit-taking. Expect some resistance to come in short-term from the monthly R1 at around $46,740, but the ultimate target for the end of this week will be $48,760, prepositioning for a breach above $50,000 next week.
BTC/USD daily chart
The risk to the downside is economic figures with today's US inflation report on the docket. Although the White House already came out saying it will be a higher number, investors will still need to assess the impact on Fed policy making and whether it will lead to either a double or single rate hike from the FED in March. This could translate into a short but aggressive bearish inflow, leading to a break below the 55-day SMA again and support coming in at $39,780.
Ethereum bulls have one job to do before booking an additional 12% gain by this weekend
Ethereum (ETH) price sees bulls a bit hesitant on what to do with the 55-day SMA that they are facing today at $3,267. Some profit-taking is quite normal as price action was rejected yesterday from any further upside. Expect a lot of nervousness today as it will be essential to see if this fade will start to widen and get stretched more to the downside, and we could see a further continuation tomorrow.
ETH price is supported by several tailwinds coming from overall positive sentiment as investors are back involved in the markets and are scanning asset classes for opportunities to go long for the medium-term. This should add the needed momentum for today's price action, to a break above the 55-day SMA, and potentially reach a target at the $3,391 pivotal level. This opens the door for an ideal scenario in which Ethereum price reaches the 200-day SMA by this Sunday, near $3,600.
ETH/USD daily chart
As already mentioned in the paragraph above, it could well be that the fade starts to widen into a full retrace for Ethereum, stretching the price back to $3,018. As this pivotal level has been critical for bulls to break above to end the longer-term downtrend finally, it should be able to maintain further losses. Although a correction this wide could puzzle some bulls as to whether this is the right area to buy in again, expect a possible slippage further to the downside towards $2,927 at the monthly pivot or even a bounce off red descending trend line at $2,800.
XRP price sees bulls breaking a sweat to break above $0.88 finally, but aspirations are there for $1.00
Ripple (XRP) is in a perfect squeeze formation with lower highs and higher lows as buyers and sellers are being pulled towards each other. The eventual result will be a bullish upside explosion with bears stepping out of the way and opening the room for bulls to push higher towards $0.95, just a bit below the 200-day SMA. That SMA is a significant sentiment factor with more upside potential once bulls push price action above it. It must be stressed and underlined that a daily close would be essential to turn the 200-day SMA into solid support favouring bulls and enabling them to withstand any fades or profit-taking.
XRP/USD daily chart
With the profit target set for $1.00, bulls could be blindsided as investors will want to jump on any occasion to go long, opening the door for bears to pull a technical bull trap. XRP would fall back to $0.84 and possibly even $0.78, making the green ascending trendline wobble a little bit like a supporting element. But the bear pusch could be short-lived as the 55-day SMA and $0.78 look excellent to provide support and contain any further losses.
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