Bitcoin’s takeoff at $ 16,000 to trigger the next bull run

• Bitcoin holds between the resistance at $ 15,500 and the support at $ 15,000 as the consolidation carries.
• Ethereum is crucial at $ 460 for the drive to establish higher support and avoid potential losses at $ 430.
• Ripple’s side trading action could last longer, especially with the strong resistance at $ 0.26.

The world celebrated the news that a giant U.S. pharmaceutical company had developed a 90% vaccine to prevent COVID-19. The information reverberated in global markets, with related stocks making huge gains. However, Bitcoin and the entire cryptocurrency market ignored the developments while stability reigned.

It is unclear how Bitcoin will react to the final news of the production and availability of the coronavirus vaccine around the world. Many analysts have attributed the recent gains to pressure channeled in the stock market by the pandemic and the recently concluded US presidential election.

Meanwhile, the flagship cryptocurrency has settled for consolidation between $ 15,000 and $ 15,500. Other major cryptocurrencies such as Ethereum and Ripple are closely following in Bitcoin’s footsteps. Although side trading is dominant in the cryptocurrency market, the trend appears to be leaning towards the bullish side.

Bitcoin calm before an impending breakout

The consolidation is well illustrated on the 4-hour chart using the Bollinger Bands. BTC is stable above the average limit of the indicator. A bullish momentum hints at a potential breakout at levels above the new yearly highs reached recently at $ 15,890. Furthermore, the continued narrowing of the bands indicates a potential breakout in the near term.

The existence of multiple and intense support areas suggests that Bitcoin will push past the 2020 peak and extend the bullish leg to its all-time high around $ 20,000. Some of these key support areas include $ 15,000, strengthened by the 50 simple moving average over 4 hours, last week’s critical support at $ 14,500 and the 100 SMA.

BTC / USD price chart

On the other hand, a reversal in the picture could occur if Bitcoin dives below the middle layer of the Bollinger bands. Price action like this could trigger huge selling pressure, pushing through crucial support areas.

Ethereum seeks higher support

The Ethereum bulls activated their defense mechanisms following a second rejection marginally below $ 470. The search for higher support is such that Ethereum can resume the uptrend at $ 500 before launching the much anticipated ETH 2.0.

If losses progress below $ 450 and Ethereum slips below the descending trend line, a selloff could further trigger Ethereum dips. Other provisional support areas include $ 440, the 50 SMA on the 4-hour chart, and the 100 SMA, which is currently holding ground at $ 410.

ETH / USD 4-hour chart

On the upside, price action would resume to $ 500 if Ethereum reaches the $ 460 support. A higher support will allow plenty of time to focus on reducing the next resistance at $ 470 and $ 490 respectively.

Real estate ripple below $ 0.26

XRP lost ground above $ 0.26 after hitting a barrier below $ 0.27. Strong support appears to have formed beyond the confluence created by the 50 SMA and the central boundary of the Bollinger band.

The immediate upside of the cross-border token is barricaded by the 100 SMA and seller congestion at $ 0.26. Trading above these two hurdles would require more buy orders, creating enough volume to bring XRP to $ 0.3.

Meanwhile, the prevailing sideways action may last longer as observed by the Bollinger Bands. Likewise, the Moving Average Convergence Divergence (MACD) adds credibility to the consolidation.

XRP / USD 4-hour chart

It is worth mentioning that the consolidation and impending breakout at $ 0.3 will be invalidated if Ripple dips below the Bollinger Band mid-range and the 50 SMA. Bearish momentum could also build to near-term support at 0.24. $. If XRP breaks out of this zone, the next interim demand zone would be the 200 SMA.