- Bitcoin price rebounds above $19,000 despite on-chain metrics turning bearish.
- Ethereum is struggling to overcome the hurdle at $600, as on-chain metrics suggest investors retreated into the sidelines.
- Ripple is on the cusp of correcting to $0.45, mostly if support levels at $0.6 and the 50 SMA are shattered.
The cryptocurrency market is turning bullish again after retracing in the last 24 hours. All the top ten cryptocurrencies are in the green, considering the hourly percentage change. Bitcoin is leading the pack after reclaiming the ground above $19,000.
The fight for higher yearly highs is still on, especially for Bitcoin and Ethereum. However, it is essential to proceed with caution, as discussed earlier, using Bitcoin’s percentage of transfer volume in profit.
Similarly, Ethereum investors do not appear to be excited by the launch of ETH 2.0, a situation that could brew havoc for the smart-contract token in the near term.
Bitcoin resumes the uptrend targeting $20,000
The bellwether cryptocurrency is back to trading above $19,000. The rejection from levels close to $20,000 lost traction before hitting $18,000. Buyers took advantage of the support at the 50 Simple Moving Average on the 4-hour chart and the ascending trendline to force the ongoing reversal.
At the time of writing, BTC/USD is dancing slightly above $19,200 while bulls work extra hard to boost $20,000. The cheerful optimism seems to have been validated by the Relative Strength Index, as it rebounds from the midline heading to the overbought area.
Bitcoin could trigger a massive bull run if it breaks the resistance at the newly achieved all-time high at 19,915. Trading above $20,000 would see the king of cryptocurrencies enter the price discovery mode, perhaps even lift above the $22,500 prediction made on Tuesday.
BTC/USD 4-hour chart
On the other hand, a bearish narrative will come into the picture if Bitcoin closes the day under $19,000. Price action below the ascending trendline, as well as the 100 SMA, might trigger massive sell orders, creating enough volume to force BTC into a downtrend with a target at the 200 SMA.
Ethereum loses traction as a breakdown to $525 lingers
The smart-contract token has not cleared the hurdle at $600 following the fall from the new yearly high of around $636. Bears seem to be gaining momentum under the short-term resistance. On the downside, support is provided by an ascending trendline.
Trading beneath the trendline will likely be detrimental to the progress made since the Thanksgiving Day crash. The 50 SMA is expected to absorb some of the selling pressure building under $600. However, if ETH declines stretched further, the price may revisit the zone at $525 (former resistance).
As supply rises for Ether, the buyer congestion at $500 and the 200 SMA will come in handy in case of extended losses. As discussed earlier, most on-chain metrics have turned bearish, hence the potential for a considerable correction before Ethereum resumes the uptrend.
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ETH/USD 4-hour chart
On the upside, Ethereum will abandon the bearish outlook if the price closed the day above $600. Moreover, suppose stability comes into the market above this crucial level. In that case, buyers will have ample time to plan the mission for gains eyeing $720, as predicted by FXStreet’s Crypto Editor, Tanya Abrosimova.
Ripple on the verge of a massive retreat if critical support breaks
XRP is holding firmly to the support provided by the 50 SMA on the 4-hour chart. As explained earlier on Wednesday, the need for support emerged after the cross-border token slipped under an ascending wedge pattern.
If the buyer congestion at the 50 SMA is dispersed, Ripple will likely ease into another breakdown with the potential of reaching last week’s support at $0.45. The 100 SMA, slightly above $0.45, might absorb some of the selling pressure. However, if the bearish grip intensifies, XRP would tumble to the 200 SMA, marginally above $0.35.
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XRP/USD 4-hour chart
For now, stability has been reinforced by the RSI as it levels slightly above the midline. Closing the day above the 50 SMA or the support at $0.6 might help focus the bulls’ attention on higher levels, preferably $0.7 and $0.75. Price action past the crucial $0.75 could pave the way for the final leg to $1.