- Elon Musk sends the crypto market on a bullish frenzy after hinting that he purchased Bitcoin.
- BTC spikes from $32,000 to $36,000 in less than an hour, with bulls eyeing $40,000.
- Ethereum brushes shoulder with $1,400 amid the push to hit new record highs at $1,500.
- Ripple breaks out of a symmetrical triangle pattern to settle above the 100 SMA ahead of the upswing to $0.4.
The cryptocurrency market is a bust of activities as we usher in the weekend session. Dogecoin was pumped by traders on Reddit and speculators on Twitter, leading to a 600% upswing. However, the most intriguing and unexpected news is that the founder of Tesla, the leading manufacturer of electric vehicles, Elon Musk, has finally purchased Bitcoin.
Speculators in the cryptocurrency community are in a beast mode as Bitcoin swings higher. In less than an hour, Bitcoin has recovered from $32,000 to trade above $36,000. The massive move has already started to impact the altcoins, which have been showing enormous rally signals.
Speculators pump Bitcoin price toward $40,000
BTC recently tested support at $30,000, a move I described as hunting for a higher bottom. Bitcoin needed to hold this support. Otherwise, a descending triangle could have sent to lower price levels, perhaps below $25,000.
The recent gains above $32,000 added credibility to the recovery mission; however, Elon Musk buying Bitcoin has elevated the prices to $36,000. For now, BTC is back to trading above all the three applied moving averages; the 50 SMA, 100 SMA, and 200 SMA. Because the Relative Strength Index is not quite overbought, the pioneer cryptocurrency could shoot up toward $40,000.
BTC/USD 4-hour chart
Meanwhile, if the price fails to hold above $36,000, overhead pressure is likely to increase. A bearish leg under the 100 SMA or $34,000 may trigger massive sell orders. The people pumping the price now could also dump, adding to the selling pressure and perhaps push Bitcoin back to $30,000.
Ethereum touches $1,400 amid heightened speculation
Ethereum is predicted to $2,000 and $3,000 in the coming weeks. However, the second-largest cryptocurrency is trading under $1,400. The break above the falling wedge pattern occurred as predicted on Thursday.
Trading above the 50 SMA added credence to the bullish outlook in addition to providing support. Meanwhile, the pump in the price of Bitcoin has boosted ETH to brush shoulders with $1,400.
Ether is exchanging hands at $1,360 as buyers fight for gains above $1,400. On the upside, eyes are trading new record highs at $1,500, which is likely to trigger massive buy orders as speculators target $2,000 in the near-term.
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ETH/USD 4-hour chart
Notably, recovery to $1,500 will be temporarily ceased if the resistance at $1,400 remains intact. On the downside, overhead pressure may push Ethereum back to the 50 SMA support at $1,300. Depending on the magnitude of the downforce, Ether could also test the recent support at $1,200.
Ripple begins the ultimate journey to $0.4
Ripple has consistently grown in value after holding at $0.24 during the last’s week slump. Gains above the 50 SMA and 200 SMA cemented the bulls’ presence in the market. At the time of writing, XRP is exchanging hands at $0.28, moments after stepping above the crucial 100 SMA.
As extensively analyzed earlier, the breakout from the symmetrical triangle pattern has the potential to levels above $0.4. Such a move may also trigger a bull run for XRP after suffering massive losses due to the Securities and Exchange Commission case against the issuing company, Ripple Labs Inc.
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XRP/USD 4-hour chart
It is worth mentioning that Ripple must hold onto the 100 SMA support to sustain the uptrend. Failure to do so, XRP may pull back into the triangle, suggesting that the recent breakout was a false signal. Other critical levels to keep in mind are the 50 SMA and 200 SMA.