- Bitcoin on the verge of a breakout to $46,000, but needs to slice through the hurdle at $38,000 first.
- Ethereum is looking forward to an upswing towards $2,000 ahead of the futures launch on CME.
- Ripple eyes a breakout back to $0.75 after recovering from the major support at $0.35.
The cryptocurrency market is mostly painted green, especially regarding altcoins. Bitcoin has remained relatively unchanged since Thursday. Ripple came out of the consolidation, reclaiming the ground above $0.4.
Similarly, Cardano continued with the rally, growing in value by at least 20%. Chainlink is also among the double-digit gainers alongside Binance Coin, Aave and Compound. The majority of the cryptocurrencies in the top 50 have posted gains between 5% and 10% over the last 24 hours.
Bitcoin consolidates ahead a critical technical breakout
BTC has settled above $36,000 following the recent recovery from $32,000. On the upside, $38,000 limits movement and is delaying a potential ascending triangle breakout. The pioneer cryptocurrency is doddering at $37,615 amid sideways trading action.
The formation of the triangle pattern is exceptionally bullish for Bitcoin. This technical pattern could see the bellwether cryptocurrency soar to new all-time highs of around $46,000. Breakout targets from ascending triangle patterns are precisely measured from the highest to the lowest points of patterns.
A golden cross pattern is likely to come into the picture on the 4-hour chart. It forms when a short-term moving average crosses above a longer-term moving average. For instance, the 50 Simple Moving Average (SMA) could cross above the 200 SMA, validating the uptrend.
BTC/USD 4-hour chart
Bitcoin must rise above $38,000 to sustain the expected upswing. However, the breakout may not come immediately, mostly if the ongoing sideways trading remains unchanged.
The Relative Strength Index (RSI) on the 4-hour chart supports the lateral price movement as it levels around 60. In other words, the upswing may take longer to materialize. Perhaps Bitcoin will retest $36,000 before it gains ground.
Ethereum fights for the ultimate breakout
Ethereum cooled off the steam after rising to a record high of around $1,700. Although a rejection sent ETH under $1,600, the drop was brief and recovery soon ensued. At the time of writing, Ether is trading at $1,670 amid the push for gains above $1,700.
All indicators appear to have aligned for another breakout, starting with the RSI on the 4-hour chart. The trend’s strength indicator is making its way back into the overbought region, hence a bullish signal.
Simultaneously, the 50 SMA on the same 4-hour chart is widening the gap below the 100 SMA and the 200 SMA, suggesting that buyers are still gaining more influence over Ethereum. A break beyond $1,700 is likely to send Ethereum to $2,000 ahead of the CME ETH futures contract launch on Monday.
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ETH/USD 4-hour chart
The anticipated rally to $2,000 will fail if Ethereum cannot crack the hurdle at $1,700. Consolidation may take precedence, with Ethereum pivoting between $1,600 and $1,700. However, a significant correction to the 50 SMA will come into the picture if Ethereum drops below $1,600.
Ripple begins its recovery journey
Ripple appears to have resumed the uptrend after falling to $0.35. This support has played a vital role in the price increase to $0.45. However, the cross-border token has run into a critical barrier that must be cracked to continue the recovery journey.
Earlier this week, XRP was pumped to $0.75 but dropped like a stone in the air as investors exited their positions. To achieve similar gains, Ripple must have enough volume. Price action above $0.45 is the first step toward attracting investor interest and increasing the tail force.
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XRP/USD 4-hour chart
It is worth mentioning that not closing the day above $0.45 may see overhead pressure shoot up. Besides, XRP holders have been quick to sell recently due to the uncertainty caused by the ongoing lawsuits against its issuing company, Ripple Labs Inc. Therefore, losses could extend to $0.4 and perhaps $0.35 (primary support).