• Bitcoin price developing strongest weekly candlestick of the past ten weeks.
  • Ethereum price prepped for a return to $4,500.
  • XRP price triggers a bear trap and slaughters short-sellers; rally to $2.00 underway

Bitcoin price action has been on a tear, destroying short positions as bearish outlooks across the board as smashed. Ethereum price has a more difficult path than Bitcoin, but the structure is clearly bullish. XRP price enters a short-squeeze, likely liquidating many leveraged positions on unregulated derivatives platforms.

Bitcoin price poised to hit $55,000, pause, then target new all-time highs

Bitcoin price action has been phenomenal during the Christmas trading week. Spiking more than 11% so far this week with a target of a 20% upswing to end the week, the new leg higher for Bitcoin has likely begun.

Contributing to Bitcoin’s performance and an extended bullish outlook is three key events:

  1. New 2021 Volume Point Of Control printed at $47,500.
  2. Weekly bullish engulfing candlestick formed, ending the current seven-week Gann ‘death cycle’.
  3. Enormous hidden bullish divergence between the candlestick chart and the Composite Index.

Traders should expect a slight pause and some profit-taking near the weekly Tenkan-Sen at $55,000.

BTC/USD Weekly Ichimoku Chart

Invalidation of this bullish outlook will only occur if Bitcoin experiences a weekly close below the top of the Cloud (Senkou Span A) at or below $43,000.

Ethereum price to test resistance at $4,150 and then $4,500 before making new all-time highs

Ethereum price has two primary resistance zone up ahead. The first is a confluence zone of two Ichimoku levels at the $4,150 level: Senkou Span B (most substantial level of support/resistance in the Ichimoku system) and the Kijun-Sen. If buyers can close Ethereum above that price level, the next test is not far away.

The final resistance zone exists between $4,300 and $4,500. The top of the current bull flag, the Cloud, and 61.8% Fibonacci expansion exist within that range. If Ethereum can breach that zone, then the next move for Ethereum is new all-time highs near the $7,300 value area.

ETH/USD Daily Ichimoku Chart

Downside risks remain as long as Ethereum is below the Cloud. For example, a close below $3,700 would probably trigger a return to the $2,800 value area.

XRP price begins massive short squeeze, the rally above $1 to $2 begins

XRP price action has been one of the more unexpected movers of the past week. Thus far, the trading range for the Christmas trading week has exceeded the highs of the past four weeks, triggering a large number of short-sellers along the way. A battle between bulls and bears near the $1 level is likely to continue, but bulls are better positioned to win that conflict.

The XRP weekly chart has one significant benefit that many altcoins do not have: a thin Ichimoku Cloud. Thin Clouds represent weakness and ease of movement. While Senkou Span B is extraordinarily flat and has been in a flat condition for thirty-six weeks, it may not behave as a significant source of resistance due to the thin nature of the overall Cloud.

XRP/USDT Weekly Ichimoku Chart

However, as long as XRP price remains below the Cloud, it is still considered bearish. This bullish outlook would be invalid if a close below the $0.80 value area occurred. XRP price would probably flash-crash towards the $0.50 level in that scenario.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why LUNA traders do not have to be in the market all the time

Why LUNA traders do not have to be in the market all the time

Terra (LUNA) price action has slipped below a critical level outlined a few days ago. As price action moves start to get smaller, a big move is set to happen, but it is very cloudy to see where that move will be going.

More Terra News

SEC vs. Ripple case, two key decisions awaited by XRP holders

SEC vs. Ripple case, two key decisions awaited by XRP holders

XRP holders are awaiting key decisions in the SEC vs. Ripple case. Experts believe judge Sarah Netburn could rule on the two key decisions in the lawsuit against payment giant Ripple. 

More Ripple News

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC’s purchase of carbon credits through KlimaDAO partnership represented 104,794 tonnes of greenhouse gasses, equivalent to the Ethereum scaling solution’s debt since 2019. Carbon neutrality has fueled a bullish sentiment among traders and 

More Polygon News

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Shiba Inu price may have bottomed but this can only be confirmed if the current rally persists. Traders should be aware of several factors. Shiba Inu price has suddenly changed as the bulls have printed a significantly large bullish engulfing candle on the daily chart. 

More Shiba Inu news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP