- Bitcoin bulls have confidently regained a position above $ 16,000 in the middle of a construction bullish momentum at $ 17,000.
- Ethereum’s price action has been capped below the 50 SMA over the 4-hour span, but the potential rally points to $ 480.
- Ripple is still in the hands of the bulls, while an ascending wedge pattern suggests a possible correction.
Investors in the cryptocurrency market have started counting the days until the end of the year. The usual year-end rally is expected to lift crypto assets to higher levels, with Bitcoin likely to rise to a new all-time high above $ 20,000. The launch of Ethereum 2.0 is also a key bullish indicator that the smart contract token could massively rise above $ 500.
On the other hand, investors predict that Ripple will follow in the footsteps of Ethereum and Bitcoin and rally towards $ 1. Selected tokens in the decentralized finance (DeFi) sector have started their year-end rallies. Some of these tokens include SushiSwap, Uniswap, and Aave.
Bitcoin on the verge of a definitive breakout above $ 17,000
The flagship cryptocurrency dipped below $ 15,000 again over the weekend, but immense buyer congestion slightly above the 50 simple moving average broke the bearish leg. BTC resumed the uptrend shortly thereafter and broke above $ 16,000 on Monday during the Asian session.
At the time of writing, the cryptocurrency king is trading at $ 16,268 at a bullish time. The Relative Strength Index adds credibility to the optimistic outlook as it recovers above the midline.
The Bitcoin bulls are eager to send the price above $ 17,000, but the resistance at $ 16,500 (new annual high) must fall first. Other hurdles could come into the picture above $ 17,000, but the fear of losing (FOMO) risks catapulting Bitcoin to new all-time highs.
BTC / USD 4-hour chart
Meanwhile, the bullish narrative will be invalidated if Bitcoin plummets below $ 16,000 again. The bearish price action is likely to trigger more sell orders. Should Bitcoin break out of the crucial support of 50 SMA, we can expect losses to extend to 100 SMA, currently at $ 15,000.
Ethereum will reach $ 480 if the immediate hurdle is overcome
The largest altcoin has recovered from the support established at $ 440 following a rejection from $ 480. After the rebound, the ETH is staggering to $ 445 as the bulls face resistance at the 50 SMA.
Closing above this zone could add credibility to the $ 480 recovery mission. Consolidation is likely to come into play in the near term, as evidenced by the RSI’s smoothing move on the midline.
ETH / USD 4-hour chart
The bearish outlook will remain if the smart contract token closes the day below the 50 SMA. The exhaustion could engulf the bullish field leaving the Ethereum bullish scenario vulnerable in the hands of the bears. Declines could revisit the recent support at $ 440. On the other hand, if the sell orders increase, Ether will be forced to explore the next support targets at 100 SMA and 200 SMA.
Ripple prints a bearish pattern
The cross-border token has recovered significantly from its November lows; however, the change remains small compared to Bitcoin. The resistance between $ 0.26 and $ 0.27 was finally broken, allowing XRP to trade hands at a monthly high of $ 0.278. Meanwhile, XRP retreated to confirm support at $ 0.265 before recovering slightly to $ 0.273 (total market value).
The 4-hour XRP / USD chart reveals the formation of an ascending wedge pattern. The chart pattern is created by connecting the highs and lows of an asset with trend lines. It is used in technical analysis to signal that an uptrend is losing momentum and a correction may be on the way.
If XRP fails to break out of the barrier at $ 0.28 and push towards $ 0.3, the bearish pressure may begin to build as sell orders rise. On the downside, price action below the wedge pattern will seek support at the 50 SMA, currently at $ 0.26 and the 200 SMA, at $ 0.25.
XRP / USD 4-hour chart
It is worth noting that the bearish picture will be sabotaged if Ripple rises above $ 0.28, as will the resistance of the wedge pattern. Crossing over $ 0.3 could trigger massive buy orders and investors could enter the market to capitalize on the rally.
Likewise, the RSI shows that buyers are relatively in control at the moment. The gold cross formed by the crossing of 50 SMA above the 200 SMA adds credibility to the bullish picture.