Altcoins ready to explode as BTC shows strength
- Bitcoin price slows down before it kick-starts a move to retest the previous Monday’s high at $47,609.
- Ethereum price sees a palpable bounce off the $3,061 support level and is on its way to tag the 2-day supply zone, extending from $3,675 to $3,862.
- Ripple price stabilizes above the $0.700 to $0.753 demand zone as it contemplates heading higher.
Bitcoin price shows signs of bottoming and the start of a new uptrend. Although BTC is getting rejected at a supply zone, this development will be followed by a massive spike that propels the market value of the big crypto. Ethereum and Ripple also look positioned for a bullish onslaught.
Bitcoin price prepares for a new leg-up
Bitcoin price set up a triple bottom around $41,000 after collecting liquidity resting below it. The resulting upswing has pushed BTC to retest the 1-hour supply zone, extending from $42,790 to $43,037.
A decisive close above this hurdle will flip the said hurdle to a breaker, facilitating a new leg-up. The resulting upswing will likely propel Bitcoin price to make its way toward last week’s low at $45,874 or the subsequent barrier at $47,609.
In total, this run-up would constitute a 12% upswing and could extend to 14% if BTC manages to retest the 200-day Simple Moving Average (SMA) at $48,378.
BTC/USD 1-hour chart
While things are looking up for Bitcoin price, a decisive close below $39,487 will create a lower low, invalidating the bullish thesis.
Ethereum price faces on significant barrier
Ethereum price has shown considerable strength as it bounced off the weekly support level at $3,061. While the uptrend has begun for the smart contract token, ETH needs to overcome the 200-day SMA at $3,445 to head higher.
Clearing the said hurdle will open ETH’s path to retest the supply zone, extending from $3,675 to $3,862. If bulls continue to hold their line, Ethereum price could extend to the weekly resistance level at $4,066.
ETH/USD 1-day chart
Regardless of the bullish outlook, if Ethereum price breaches the $3,061 support level, it could lead to a retest of the subsequent level at $2,712. A breakdown of this barrier will create a lower low, invalidating the bullish thesis.
Ripple price remains steady
Ripple price was in a tough spot as it was hovering around the daily demand zone, stretching from $0.700 to $0.753. However, the bulls made a comeback, leading to a bounce off this barrier.
As of this writing, the XRP price looks like it wants to head higher. However, the upside potential for the remittance token seems to be capped due to the existence of multiple resistance barriers up to $0.994.
That said, there is a chance for Ripple price to embark on a 13% upswing to $0.865, coinciding with the 50-day SMA. Although unlikely, a breach of this level will allow XRP price to retest the 200-day SMA at $0.951.
XRP/USD 1-day chart
On the other hand, if Ripple price produces a daily close below $0.70, it will create a lower low and invalidate the bullish thesis. In this case, XRP price could revisit the December 4 swing low at $0.604.