The cryptocurrency market is aiming for further gains as the new bull cycle begins

• Bitcoin renews the uptrend above $ 18,000, temporarily invalidating the bearish case at $ 16,500.
• Ethereum broke above $ 500 for the first time since July 2018, ready for the rally to $ 520.
• Ripple recovers above $ 0.3 after bouncing off the support at $ 0.28.

The bullish cycle in the cryptocurrency market looks poised to take things to the next higher level. Over the past 24 hours, cryptocurrencies in the top ten have seen sizable gains, with Litecoin (LTC) and Polkadot having the biggest gains.

Bitcoin has also not been left behind, especially now that it has claimed the land above $ 18,000. Ethereum has grown 4% in the past 24 hours to trade hands at $ 492. On the other hand, Ripple is battling the difficult task of regaining the position above $ 0.3.

Bitcoin is on the verge of another breakout

Bitcoin is trading at $ 18,216 after making a notable recovery above the critical $ 18,000 level. The bearish outlook of the $ 16,500 flagship cryptocurrency discussed on Thursday was invalidated, allowing the bulls to take control over the price.

For now, the path of least resistance appears to be to the upside and has been reinforced by the Relative Strength Index’s new uptrend towards the overbought territory. An oncoming constriction of the Bollinger Bands suggests a possible breakout.

If Bitcoin finished the day above $ 18,500, more buy orders are likely to enter the scene as investors expect new annual highs above $ 19,000.

BTC / USD 4-hour chart

On the flip side, closing the day below the central Bollinger Bands limit can culminate in a 50 simple moving average breakdown. If Bitcoin slips further, the panic selling and rush to cash in for profit could lead it to 100 SMA and 200 SMA.

Ethereum surpasses $ 500 for the first time since July 2018

The smart contract giant is about to turn $ 500 into support after hitting the level for the first time since July 2018. Our forecasts have suggested that Ethereum is on the $ 520 trajectory, possibly ahead of the launch of ETH 2.0, which could raise it to $ 900.

At the time of writing, ETH / USD is trading at $ 498 as it battles seller congestion at $ 500. The ongoing bullish momentum has been validated by a breakout above the parallel ascending channel. If Ether closes the day above $ 500, the next bulls will be $ 520. Here, they will work on a plan to take the token to a higher price level.

ETH / USD 4-hour chart

On the other hand, if the resistance at $ 500 remains intact, Ethereum could lose traction and slide back into the channel. An increase in selling pressure is likely to send ETH / USD downstream towards $ 480, 50 SMA and 100 SMA, marginally above $ 450.

Ripple recovers above $ 0.3

XRP is trading above $ 0.3 after recovering from the accelerated support of the ascending trend line in conjunction with buyer congestion at $ 0.28. It is uncertain whether Ripple will continue the uptrend at $ 0.31, but staying above $ 0.3 would be a bullish sign.

All three applied moving averages, 50 SMA, 100 SMA and 200 SMA, are trying to reach the bullish price, which is another bullish indicator. Furthermore, the RSI is currently not oversold, offering room for growth.

XRP / USD 4-hour chart

The TD Sequential Indicator has just presented a sell signal on the daily chart, which could invalidate the bullish outlook. The sell signal manifested itself in a green nine candle. Usually, if validated, this signal could see the price drop by one to four candles per day.

XRP / USD daily chart

At the same time, if XRP fails to keep the ground above $ 0.3, the bears will likely start exploring the rabbit hole around $ 0.22. The recent support at $ 0.28 (50 SMA) will come in handy as the downside stops. Other key levels that traders can keep in mind are the main ascending trend line, 100 SMA and 200 SMA.