A weakening of the US dollar favors Bitcoin and the cryptocurrency market

• Bitcoin retires after hitting a new annual high at $ 16,500; higher support should defend the solid bull market.
• Ethereum price took a break from the uptrend by aiming for $ 500 to establish strong support at $ 460.
• Ripple is on the brink of a breakout of $ 0.27 as long as the near-term support of the 100 SMA holds.

The cryptocurrency market is mostly still aside from Bitcoin’s rise to $ 16,500 on Thursday. Ethereum did not join BTC’s solid bullish trend, especially with the $ 470 hurdle remaining firm. At the same time, XRP held the consolidation firmly between $ 0.26 and $ 0.25. Conversely, Litecoin appears to have followed in Bitcoin’s footsteps, climbing 5% to trade hands at $ 62.

A weak US dollar could favor Bitcoin

Some reputable analysts believe Democrat Joe Biden’s latest win in the recent US election was bad for the dollar. Citibank Private Bank Chief Investment Officer David Bailin believes conventional governance could return without Donald Trump.

Therefore, there will be a paradigm shift in foreign policy that has been conducted over the past four years. In other words, the United States will return to building alliances, ending the “tariff threat first” as a negotiation strategy.

As a result, money will start flowing into emerging markets as the US dollar weakens. Bitcoin, as an emerging market, will most likely benefit from the influx of funds. Furthermore, Bitcoin represents the most likely hedge against the US dollar, being seconded by major investors such as Paul Tudor and Stan Druckenmiller.

Bitcoin retreats from the new annual high

The cryptocurrency bellwether seeks to establish a support above $ 16,000 after hitting a new annual high of $ 16,500. BTC / USD lost ground from the annual high to change to $ 16,180 at the time of writing. The mission to confirm higher support is in full swing, especially now that the relative strength index (RSI) is retreating towards the midline.

If the price exceeds $ 16,000, Bitcoin will hit the 50 Simple Moving Average on the 4-hour chart. Depending on the intensity of the selling pressure, last week’s support at $ 14,500 (100 SMA) will come in handy. Losses below this level would be a bit excessive for BTC considering the bull market, but the 200 SMA will avoid crippling losses of up to $ 13,000.

BTC / USD 4-hour chart

It is essential to keep in mind that Bitcoin is in an organic-led bull market. Several sturdy obstacles that were difficult to break were shattered. The prevailing bullish outlook is likely concrete and could build on the conquered walls to rise higher. Price action over $ 16,500 could be unstoppable towards $ 18,000. Therefore, traders need to be aware that the price could go either way.

Ethereum’s bullish trend hits a temporary setback

Ether defended the near-term support at $ 460. However, the impressive rally that Bitcoin had to reach to new annual highs didn’t drop until ETH. Instead, the smart contract token froze before facing seller congestion at $ 470.

An ascending triangle pattern is also the anchor of the immediate downside. Usually, breakouts from this pattern occur in the same direction as the trend before the triangle. In other words, ETH / USD is likely to break out of the x-axis and rally to $ 500.

Despite trading sideways, the RSI shows that the trend is trending upward. Additionally, the path with the fewest obstacles appears to be upward based on the multiple levels of support behind Ethereum.

ETH / USD 4-hour chart

It is worth mentioning that Ethereum will drop from the current price level in case of support at $ 460 and the hypotenuse will fail to hold. The first point of contact that has significant selling pressure would be the 50 SMA. Should the $ 400 target fall, Ethereum will be amortized at 100 SMA and 200 SMA.

Ripple bets $ 0.27 as buyers regain control

Ripple’s consolidation is nearing its tipping point. The token closed above the 50 SMA on Thursday, requiring more buy orders. As of this writing, XRP is dancing at $ 0.259 as buying pressure builds behind it.

The bullish outlook should hold up for the next few sessions, mainly if the price breaks out of $ 0.26. Ripple must also end the day above 100 SMA to support the positive narrative. Meanwhile, the trend favors the bulls, as illustrated by the gradual upward trend of the RSI above the midline.

XRP / USD 4-hour chart

The fourth largest cryptocurrency is needed to close the day above the 100 SMA to support the expected price action at $ 0.27. However, if it fails to do so, sellers could try to regain control of the price and push XRP to the next support target at 50 SMA. Trading below this moving average can trigger extended losses of up to 200 SMA before a reversal occurs.