Bitcoin plunders $ 18,000, crypto bull cycle on the horizon

• The price of bitcoin is approaching an all-time high; support above $ 18,000 gives the bulls time to plan the next strike mission.
• Ethereum hits a new annual high but doesn’t hit $ 500.
• Ripple explores the rabbit hole below $ 0.30 after rejection at $ 0.31.

The cryptocurrency market is dotted with red and green, especially for the top 50 digital assets. Bitcoin stood out after emerging above the crucial $ 18,000 level. On the other hand, Ethereum reached levels above $ 490 but withdrew before testing $ 500.

On the other hand, Ripple struggled to sustain gains above $ 0.3, hence the pullback to $ 0.28. If Bitcoin continues to rally to $ 19,000, it could spark a new bull run for the entire cryptocurrency market.

Bitcoin is one step closer to an all-time high

The flagship cryptocurrency rose 3% over the course of the day and 8% over the past 24 hours. The most notable moment was the step that made over $ 18,000. BTC / USD hit an intraday high of $ 18,487 but also retreated to $ 18,200.

A look at the 4-hour chart highlights that BTC / USD is trading in exceptionally overbought conditions. The relative strength index is buried deep in the region above 70. Therefore, a trend reversal is likely to occur.

Bitcoin will likely encounter resistance at $ 18,500 in the run up to $ 19,000. Higher support is required, preferably above $ 18,000, to avoid wiping out the progress made this week.

BTC / USD 4-hour chart

It is worth bearing in mind that price action below $ 18,000 could trigger a massive sell-off. If so, traders need to be aware of potential support areas. If a failure occurs, the flagship cryptocurrency will seek refuge at $ 17,500, $ 16,500 and 50 Simple Moving Average, currently at $ 16,255.

Ethereum seeks balance before resuming the uptrend

The smart contract giant reacted in tandem with Bitcoin’s spike early Wednesday, surpassing $ 490 for the first time since July 2019. A new annual high was trading at $ 496, but Ethereum retreated to seek a balance below $ 480. ETH / USD is currently trading at $ 477 at an increasing bearish time.

To resume the uptrend, Ethereum needs to recover above $ 480 and focus on breaking the resistance of the parallel uptrend. Meanwhile, other vital support areas include the 50 SMA, at the time of writing at $ 462.8, the middle limit of the channel and its lower limit.

ETH / USD 4-hour chart

On the other hand, the bullish narrative at $ 500 will be sabotaged if Ethereum closes the day below the 50 SMA. An increase in sell orders could create enough volume to increase the headwind against ETH. Trading below the uptrend channel could also trigger losses on the primary support at $ 440 as evidenced by the 100 SMA.

Ripple’s path of least resistance is downward

The cross-border token recently hit highs above $ 0.3, but failed to sustain the upward trend to break through the next seller congestion area at $ 0.31. A correction quickly entered the scene, undisturbed by Bitcoin’s surge above $ 18,000.

Meanwhile, XRP is trading at $ 0.293 amid a growing bearish hold. A break below the accelerated trend line confirmed the initial support at $ 0.28. It is essential to note that if Ripple doesn’t close the day above $ 0.3, the selling pressure could build and trigger another slump.

The RSI could validate the downtrend if it prints a bearish divergence, following a pull out of the overbought territory. Extended losses are likely to push XRP below $ 0.28. Support should come in handy at the 50 SMA at the time of writing at $ 0.27, the main trend line, and at the 100 SMA, slightly below $ 0.26.

XRP / USD 4-hour chart

Closing the day above $ 0.3 could invalidate the potential failure. Other investors could enter the market if Ripple confirms higher support. As a result, it would be a good gesture for the bulls to return and potentially trigger a run-up above $ 0.31.