- Bitcoin price fades after rejection at $41,756.61, support at $40,000 could create a bounce to $45,000 by next week.
- Ethereum price sees bulls defending 55-day SMA as profit-taking is being contained to keep the rally going.
- XRP price opens above $0.7843, spelling more profit as long as bulls can keep price action above this vital level.
Bitcoin price, Ethereum and other cryptocurrencies are in profit-taking mode after a fierce long overdue relief rally. Although talks are ongoing and the recovery is still very much intact with several important price breakouts above critical levels and hurdles, it will be essential to see these levels hold. The uptrend’s continued progress will be vital for the maintenance of the current relief rally as the weekend approaches with a risk that it could be cut short very quickly.
Bitcoin price rejection at $41,756.61 could scare investors away
Bitcoin (BTC) price action has punched a hole in the wall of bearish defences by breaking above the 55-day Simple Moving Average (SMA) and the $39,780.68 level that was capping price action. With a clear close above these barriers, this area is now under the control of bulls. It is pretty standard that some profit-taking is usually triggered on the next trading day with this current unstable global market background. So a fade is no reason to panic and might even be good for the rally as bulls that are joining the party late now have a window of opportunity to get in or add more to their more position.
Thus, BTC price action is set to break through $41,756.61 before the weekend as peace talks continue, are even more detailed, and point to a possible breakthrough anytime soon. Expect a break above the already mentioned $41,756.61 dotted line this weekend, to open up the space towards $45,000.00. The only level in the way stands at $44,088.73 which will be a hard nut to crack, as bears will want to keep the downtrend intact and not let price action run too high up for now.
BTC/USD daily chart
Dollar weakness is also helping after the FOMC delivered a relatively dovish forward guidance. This rhetoric could change once the Ukrainian situation has been resolved, and the FED will have their hands free to intervene more hawkishly. This could drag on investor sentiment as it will make fixed income more attractive as a return on investment against the uncertainty of stocks and cryptocurrencies. In that case, expect to see investors flee Bitcoin price action, leading to a drop back down to $38,073 - $36,709, the lower levels of 2022.
Ethereum price needs bulls defending $2,745 to keep the rally alive
Ethereum (ETH) price action had a stellar move yesterday as investors got back involved in price action and tried to take a silver lining from peace talks after headlines pointed to more progress being made. The FOMC helped by delivering a dovish rate hike and pushing risky stocks to further gains into the closing bell yesterday. With a slight fade today, it is expected that investors are reassessing the situation, taking some profit, and possibly adding even more to their positions as price action slips a little bit from Wednesday’s high.
ETH price looks very well defended by the 55-day SMA at $2,745 – now turned into support after bulls broke through it yesterday and were able to eke out a daily close above. When price action intraday approaches this level, expect more bulls to join in and ramp up price action again with a target at $3,018.55. That would constitute a small 10% gain, possibly made by Friday as the relief rally continues today and tomorrow.
ETH/USD daily chart
Ethereum bulls could become hesitant, however, and not step in at the 55-day SMA, on a break below which could trigger more profit-taking as panic amongst the bull camp sets in. That would see a spiral move back down to $2,695, and the double bandwidth at $2,682.70, ordinarily sufficient to withstand any push to the downside. In the case of negative headlines coinciding with the move, however, expect to see a drop back to the lower level at $2,500.00.
XRP price set to pop another 11%
Ripple's (XRP) price action has delivered a clear bullish signal to the markets after bulls comfortably closed above $0.7843. With such bullish rhetoric, markets are now looking to test how strong this bull run is with a slight fade and test of the nearest support level acquired since the rising price action from Wednesday. FED chair Powell helped markets a little by delivering a dovish rate hike.
Expect a further uptick once it is made clear that bears are no match for the number of bulls waiting to pick up and defend price action when nearing the first support available. For Ripple price action, that is $0.7843, perfectly set for a bounce into the US close towards $0.8390. Expect a punch through that level with yet another daily close. This sets the scene for Friday, and a test of support at $0.8390, followed by a hit of the $0.8791 level, marked up on the charts, and then an attack of the 200-day SMA later next week.
XRP/USD daily chart
With the FED statement yesterday, clear tail risk is present as the central bank could speed up its policy tightening. That would weigh on investor sentiment and see XRP price action take a nosedive and investors pulling out. In such a case, expect a drop back to the green ascending trend line around $0.78 and possibly a drop even to $0.73, where the 55-day SMA will step in and catch the falling price action.
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