Bitcoin sells best of 2020, crypto market bull rush hits pause

• Bitcoin price plummets from 2020 high as selling pressure escalates the call to $ 16,500.
• Correction of Ethereum at the critical point; slipping below the 50 SMA could send it to the main support of $ 440.
• The Ripple bulls are busy seeking higher support to protect the gains from this week and reignite the uptrend.

The cryptocurrency market rising to new annual highs, particularly for Bitcoin, is unlikely to stop anytime soon. However, what goes up must come down, at least according to science. Note that in the markets, demand areas are likely to control the potential correction.

Bitcoin appears to have triggered thrust reversers after hitting a recent annual high at $ 18,500. The withdrawal affected most of the crypto assets in the top 50, leaving a dominant red paint.

Ethereum is fighting for support above $ 470 as Ripple ended the day below $ 0.29. If the bulls do not resume the bullish trend across the board, the selling pressure is likely to increase in the coming sessions.

Bitcoin $ 16,500 correction eyes

The flagship cryptocurrency was declined from the annual high of $ 18,500. The move also skewed buyers slightly, resulting in price action below $ 18,000. As of this writing, Bitcoin is dancing at $ 17,625 as bearish momentum continues to gain traction.

Meanwhile, if Bitcoin dips below the initial support at $ 17,500, BTC could plummet further. The most formidable point of contact would be the simple moving average 50 over 4 hours.

On the other hand, the bearish divergence of the relative strength index after hitting a higher high in the overbought region and a higher low has strengthened the bearish outlook. The 100 SMA, at $ 15,714, and the 200 SMA, at 14,300, are other key support levels to keep in mind.

BTC / USD 4-hour chart

The TD sequential indicator presented a sell signal on the daily chart. The bearish formation was illustrated in a green nine candlestick. Normally, this indicator shows that an increase in supply relative to BTC could bring the price down by one to four candles per day. A massive correction could also resume selling pressure and increase the headwind against Bitcoin.

BTC / USD daily chart

It is important to note that the bearish outlook will be invalidated if Bitcoin ended the day above $ 17,500. This way, buyers will have enough time to prepare for a takeoff of over $ 18,000.

Ethereum slides towards a decisive point

The smart contract token failed to resume the uptrend above the mean ascending limit of the parallel channel. The price also slipped below $ 470 and is now slightly above the 50 SMA on the 4-hour chart.

Holding above this crucial level could help the bulls resume the uptrend towards $ 480. Furthermore, a daily close above the channel’s mid-level would help bring the bulls back to $ 500.

ETH / USD 4-hour chart

Meanwhile, if Ether slips below the 50 SMA, massive sell orders would be triggered, opening the door to losses of $ 460. The RSI in the same 4-hour time frame doubles on the impending breakout, mainly due to the withdrawal from the overbought territory at the midline.

Likewise, the lower limit of the channel must remain intact; otherwise, the downside could extend to 100 SMA at $ 445 and primary support at $ 440.

Hunting for ripples for higher support

XRP bulls have a single mission; to find relatively higher support. This will help protect the gains made this week. Furthermore, the support will allow the bulls to focus on the renewal of the uptrend above $ 0.3.

For now, the path of least resistance appears to be down, especially with the RSI rapidly plunging towards the midline from the overbought territory. The cross-border token will likely find support at $ 0.28. However, if the critical moment comes, XRP can extend the bearish leg to the 50 SMA at $ 0.275.

The 4-hour chart brings to light other vital support levels including the $ 0.27, 100 SMA slightly above $ 0.26, and the 200 SMA at $ 0.254.

XRP / USD 4-hour chart

The search for formidable support will be invalidated if XRP closes the day above $ 0.29. Trading above this crucial level may require more buy orders, creating enough volume to lift XRP above $ 0.3.