- Bitcoin retreats after hitting a new yearly high at $16,500; higher support is expected to defend the solid bull market.
- Ethereum price has taken a hiatus from the uptrend eyeing $500 to establish strong support at $460.
- Ripple is on the cusp of a breakout to $0.27 as long as the short term 100 SMA support holds.
The cryptocurrency market is mostly motionless apart from Bitcoin’s upsurge to $16,500 on Thursday. Ethereum did not join BTC’s solid uptrend, especially with the hurdle at $470 staying put. Simultaneously, XRP held firmly in consolidation between $0.26 and $0.25. On the contrary, Litecoin appears to have followed Bitcoin’s footsteps, soaring 5% to exchange hands at $62.
A weak US dollar could favour Bitcoin
Some renowned analysts find the latest win by Democrat Joe Biden in the recent United States presidential elections to be bad for the dollar. Citibank Private Bank’s Chief Investment Officer, David Bailin, reckons that with Donald Trump out of office, conventional governance may return.
Therefore, it will take place a paradigm shift in foreign policy conducted in the last four years. In other words, the US will go back to building alliances, putting an end to ‘Tariff threat first’ as a negotiation strategy.
Consequently, the money will start to trickle down to emerging markets as the US dollar weakens. Bitcoin, as an emerging market, will most likely benefit from the influx of funds. Besides, Bitcoin stands as the most probable hedge against the USD, as seconded by prominent investors like Paul Tudor and Stan Druckenmiller.
Bitcoin retreats from new yearly high
The bellwether cryptocurrency seeks to establish support above $16,000 after hitting a new yearly high at $16,500. BTC/USD has lost some ground from the annual high to change at $16,180 at the time of writing. The mission to confirm higher support is in full swing, especially now that the Relative Strength Index (RSI) is retreating towards the midline.
If the price pierces through $16,000, Bitcoin will spiral to the 50 Simple Moving Average on the 4-hour chart. Depending on the intensity of the selling pressure, last week’s support at $14,500 (100 SMA) will come in handy. Losses below this level would be a bit of an overstretch for BTC considering the bull market, but the 200 SMA will prevent paralyzing losses towards $13,000.
BTC/USD 4-hour chart
It is essential to keep in mind that Bitcoin is in an organically-driven bullish market. Several robust hurdles that were difficult to break have been shattered. The prevailing bullish outlook is probably concrete-strong and could build on the conquered walls to lift higher. Price action beyond $16,500 may be unstoppable towards $18,000. Therefore, traders must be aware that the price might go either way.
Ethereum uptrend hits temporary setback
Ether defended the short term support at $460. However, the impressive rally Bitcoin had to new yearly high did not trickle down to ETH. Instead, the smart contract token stalled before tackling the seller congestion at $470.
An ascending triangle pattern also anchors the immediate downside. Usually, breakouts from this pattern take place in the same direction as the trend before the triangle. In other words, ETH/USD is likely to pull above the x-axis and embark on the rally to $500.
Despite the sideways trading, the RSI shows that the trend is leaning to the bullish side. Moreover, the path with the least hurdles seems upwards based on the multiple support levels behind Ethereum.
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ETH/USD 4-hour chart
It is worth mentioning that Ethereum will break down from the current price level in case of support at $460 and the hypotenuse failing to hold. The first point of contact having substantial selling pressure would be the 50 SMA. If declines target $400, Ethereum will be cushioned at the 100 SMA and the 200 SMA.
Ripple eyes $0.27 as buyers regain control
Ripple’s consolidation is approaching its tipping point. The token closed above the 50 SMA on Thursday, calling for more buy orders. At the time of writing, XRP is dancing at $0.259 as buying pressure builds behind it.
The bullish outlook is expected to hold in the coming sessions, mainly if the price steps above $0.26. Ripple must also close the day beyond the 100 SMA to support the positive narrative. Meanwhile, the trend favours the bulls, as illustrated by the RSI’s gradual uptrend above the midline.
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XRP/USD 4-hour chart
The fourth-largest cryptocurrency is required to close the day above the 100 SMA to sustain the anticipated price action to $0.27. However, if it fails to do so, sellers might seek to regain control over the price and push XRP to the next support target at the 50 SMA. Trading below this moving average may ignite extended losses to the 200 SMA before a reversal takes place.