- Bitcoin hit new all-time highs and looks to set a new target of $100K as next significant number.
- Ethereum price broke a bearish top line and could hit new all-time highs by the end of this week.
- Ripple price sees both bears and bulls waiting on the sideline.
Bitcoin price joined the new high club with the S&P 500, Nasdaq and Dow Jones, after peaking at a new all-time high of $67,176 on Wednesday. The catalyst was the launch of the first U.S. Bitcoin futures ETF, which led to an explosion in buy-side orders. All the media attention around BTC, had a positive spillover effect on most other major cryptocurrency prices as well.
Bitcoin price sets new target at $100,000
Bitcoin (BTC) price was in the spotlight again yesterday after the launch of the first U.S. Bitcoin futures ETF generated quite a lot of buy-side volume. Although BTC price has taken a breather after profit-taking today, expect this rally not to be over yet as the media attention from past days is only likely to attract more and more buyers..
BTC price will probably first undergo a short correction and come off the all-time highs. The first level of support, providing an excellent entry-level for a long, will be around $59,586. This support level comes from the double top formed in May as well as the clear break-and-retest on October 15. From there, the first target will be the current all-time high at $67,176.
Once Bitcoin price can steam through there, the first resistance level will be around $69,123, which falls in line with the 23.6% Fibonacci level from the Fibonacci retracement between $100K $59,586. Expect that with the favorable tailwinds currently active in cryptocurrencies, the 23.6% ($69,123) and the 38.2% ($75,024) are unlikely to provide much resistance to Bitcoin bulls. The more significant issue will be the 50% retracement level at $79.793, which lies just below $80,000 and will see quite some profit-taking because of the psychological element.
Any further catalysts coming from positive media attention or current favorable tailwinds spiraling into further upside will be a necessary factor for attracting fresh buy-side volume into Bitcoin price. This will be necessary to cover the last piece of ground between $80.000 and $100.000.
BTC/USD daily chart
Should market sentiment turn to the downside and positive news headlines start to fade quickly as Bitcoin makes no new highs, expect a break of the support at $59,586. A leg lower would see $53,350 come into view, but with that level, many bulls will want to flee and lock in as much profit as possible. This could trigger a sell-off that could push BTC price back sub $50,000 towards $48,742.
Ethereum price to hit new all-time highs soon
Ethereum (ETH) price has seen bulls coming in yesterday, helped by the positive spillover effect from Bitcoin. Bulls in ETH already tried a few attempts to break the descending top line, keeping further upside limited, however, yesterday bulls had enough volume and the right market sentiment to break firmly above and consolidate.
ETH price already tested support at $4,060 and saw even more buyers enter, adding volume to the bull run to cover the last piece of ground towards $4,646. As the favorable tailwinds and spillover effects from Bitcoin are still present, expect Ethereum price to hit new all-time highs either today or at least by the end of the week.
ETH/USD daily chart
That said, expect to see quite some profit-taking around the new high, as the monthly R2 resistance level will show some heavy resistance to bulls and this will probably lead ETH price to fade back towards $4,060. If market sentiment shifts further to the downside, for example – if Bitcoin cannot make new all-time highs or global markets start to worry about inflation again – expect a further dip below $4,060 towards $3,391. This level will be defended by plenty of bulls as it has already shown it is pivotal in deciding if ETH price is in an uptrend or downtrend.
XRP price unaffected by the tailwinds
Ripple (XRP) price looks to be unaffected by any of the events going on in the cryptocurrency market. All the media attention and favorable tailwinds that came from the Bitcoin ETF news had no real impact on Ripple’s price action. Instead, neither bulls nor bears are showing their hand, and it looks like both parties are happy to let the pennant run its course until it breaks out either way.
XRP price has been stuck in a pennant pattern since mid-September, and although a lot of tests have been to the downside, bulls look to keep defending the ascending trend line, which might tilt this pennant towards a more bullish breakout as an outcome. On the other hand, bears have perfectly defended $1.25 with rejection on both the descending trend line of the pennant and that short-term trend line acting as resistance from September 10.
XRP/USD daily chart
There is more possibility of a bullish outbreak than a bearish one, as bulls have had quite a lot more entry levels against that ascending trend line. A breakout higher would first see $1.25 met and then $1.42. From there, it is quite a long way to $1.76, so XRP price would undoubtedly need some outside help from a catalyst or favorable tailwind that could help lift the trade.
In case market sentiment overall shifts back to risk-off, expect the pennant to break to the downside and see bears break back below the blue descending trend line near $0.84. A retest at $0.78 would be possible, but a break lower is more unlikely as bulls will want to defend this support as a signal for keeping their uptrend intact.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Axie Infinity price recovery delayed despite investor deposits hitting a five-month high
Axie Infinity price, following the broader market cues, is trending downwards for the moment as the bearishness in the market has grown considerably. Incited with the regulatory crackdown by the Securities and Exchange Commission (SEC), the investors have resorted to offloading their holdings for now.
Coinbase to keep cornerstone staking service after CEO Armstrong fires shots at the SEC
Coinbase Exchange has committed to maintaining its cornerstone cryptocurrency staking services after CEO Brian Armstrong countered the US Securities and Exchange Commission (SEC), demanding regulatory clarity.
Cardano price signals accumulation as ADA crashes by nearly 10% in 24 hours
Cardano price took a critical hit on June 7 as the entire crypto market continues to suffer the impact of the regulatory crackdown against Binance and Coinbase. Amidst this chaos, the investors that bore the loss found an opportunity for recovery, but it does not sit in the hands of retail investors.
BNB price falls 10% as US court summons Binance CEO, Changpeng Zhao
Binance Coin is down a staggering 20% since June 4 to the current price of $260.93, representing a 10% downswing since the beginning of the Asian session on June 7. The leg down comes in light of recent developments in the case between Binance versus the US Securities and Exchange Commission (SEC).
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.