- Bitcoin restarts the uptrend after crossing above the critical barrier at $34,000.
- Ethereum price is poised for a 27% move if the ascending triangle resistance is broken.
- Ripple bulls fight for control following a sharp fall from the new yearly high at $0.75.
The cryptocurrency market green after a small correction, at least for selected cryptocurrencies. For instance, Bitcoin is currently trading above $35,000 after a steady but gradual rise from the support at $32,000.
Ethereum is up a swooping 9% on the day after reclaiming the ground above $1,400. Similarly, Cardano has exploded 18% to trade at $0.41. Selected tokens in the decentralized finance sector like SushiSwap are performing incredibly well. On the other hand, Ripple leads among the daily losers, incurring more than 40% in losses.
Bitcoin rebounds towards $40,000
Bitcoin was stuck under the 200 Simple Moving Average since it bounced back from the support at $32,000. However, as discussed on Monday, a daily close above $34,000 and price action past the 200 SMA would boost the largest cryptocurrency towards $40,000.
At the moment, all eyes are focusing on the next hurdle at $36,000. Note that a consistent price rise would encourage more investors to join the market as buyers increase their positions. If enough tailwind is created behind BTC, a final leg to $40,000 will likely materialize.
The Moving Average Convergence Divergence supports the bullish narrative. Buying pressure is bound to increase if the MACD line (blue) increases the divergence above the signal line.
BTC/USD 4-hour chart
Realize that failure to close the day above $36,000 would result in a rise in overhead pressure. The gains accrued on the day would be erased, leaving the tentative support at the 200 SMA and $34,000 in jeopardy. Further down, losses are likely to retest the recent anchor at $32,000.
Ethereum prepares for massive upswing to $1,850
Ethereum is back to trading between $1,400 and the record high at $1,481. On the downside, immense support has been established at $1,300, highlighted by the 100 SMA. Another essential support zone that has been critical to the ongoing recovery is the 200 SMA at $1,200.
All eyes are focused on trading above $1,500. The move will be validated with a breakout above the x-axis of the ascending triangle. Usually, a break above this triangle results in significant price action, with an exact target.
The target is measured from the triangle’s highest point to its lowest point. Thus, the pattern is implying that Ethereum could soon rally to $1,850.
ETH/USD 4-hour chart
It is worth noting that Ethereum will fail to complete the breakout if the x-axis hurdle remains put. The pioneer cryptoasset will have to hold above $1,400 to sustain the uptrend. Otherwise, selling pressure may rise, pushing firmly on the support mentioned at $1,300 and $1,200.
Ripple focuses on surviving the massive pump-and-dump
Ripple soared from lower price levels around $0.3 to new yearly highs of $0.75. However, the cryptocurrency corrected sharply, in what we described earlier as a perfect pump-and-dump scenario.
At the time of writing, XRP has embraced support at $0.35, allowing bulls to fight for their space in the market. A daily close above $0.4 may encourage the whales who offloaded their bags to return in anticipation of an upswing toward $1.
Despite the breakdown, the Relative Strength has held ground at the midline. Motion beyond the average level and toward the overbought region would reinforce the bulls’ position in the market.
XRP/USD 4-hour chart
On the other hand, more losses will come into the picture if Ripple fails to hold above the short-term support at $0.35. The 50 SMA is in line to absorb the selling pressure, but if push comes to shove, XRP may drop to the 100 SMA near $0.3.