- Bitcoin price reclaims $47,065 and could be on the verge of reclaiming $50,000 before the end of 2021.
- Ethereum price action is on the front foot and could look to pop back above $4,000.
- XRP bulls keep their act together and test $0.8390 for a break to the upside.
Bitcoin price is on the front foot this morning as bulls are making a U-turn in the price action at $46,000 and are already in the process of reclaiming $47,032. Ethereum is in the same setup, reclaiming $3,700 and the Relative Strength Index (RSI), revealing a bullish knee-jerk reaction washing out bears before New Year. XRP is no different but has issues in breaking above $0.8390 as bulls risk stepping into a bull trap if they cannot break above it.
Bitcoin price sees bulls clawing back with $50,000 insight before New year
Bitcoin (BTC) price was under the influence of bears taking control these past few days as investors seemed to be having a hangover from Christmas, and we’re not paying attention to the correction that was developing in the markets. As BTC failed to keep control of a few significant support levels, bears seized the opportunity to take hold of the price action and break it even below the ever so important 200-day Simple Moving Average (SMA). With just two trading days left for 2021 on the docket, bulls are taking back control and performing a U-turn in the price action back towards more moderate levels.
Expect some positive sentiment to further emerge in BTC price action as equity indices made new all-time highs yesterday, expect this to be translated into some tailwinds. First on the take will be the 200-day SMA at $48,000 with a significant red historical level at $48,760 to be the first big test for the uptrend. Expect once above the 200-day SMA more investors to join the rally and preposition to start 2022 with already some gains in the books. That, together with the tailwinds, could push BTC in its pace towards $50,019, reclaiming the $50,000 marker and trying to close above the monthly S1 support level by New Year’s Eve.
BTC/USD daily chart
As this rally will be built out of the previously mentioned two elements, expect BTC price action to go either sideways or even drop further if one or two of those elements starts to fade or turn into a headwind. That would mean bulls cannot close back above $47,065 and instead go sideways between $46,000 and $47,000. In the worst possible case, bulls have just entered a bull trap and bears will soon strike and break the rally towards $44,088, possibly even $43,030, which would bring BTC price action back to the low seen during the falling knife event a few weeks ago.
Ethereum price sets the target for $4,060 by New year’s eve
Ethereum (ETH) price had a sharp two-day correction as investors gave way to the bears to break the psychological $4,000 marker and even let them break $3,687, a historical level. But that is how far the party goes for the bears, as bulls reclaim that same $3,687 this morning. When bulls can keep this momentum going, expect more investors to come in during the US session and ramp up price action further towards $3,800.
Once from there, it gets a bit tricky for ETH price action as volume by tomorrow will have died down even further and with thin liquidity between both buying and selling volume, expect some choppiness going into New years eve. That could fall in favor of the bulls with a blitzkrieg push that would pierce $4,000 and might consolidate above $4,060. That level would be a perfect starting point for 2022 and would trigger more investor inflow in January.
ETH/USD daily chart
The single risk event that bulls and investors need to keep in mind is that this could be a bull trap that would soon see bears coming in with a vengeance and break ETH price action further to the downside. ETH price would collapse and spark a sell-off towards $3,391 with three solid support elements to kick in with a historical element, the S2 support level and the 200-day SMA all in the same area.
XRP price sees bullish uptick, but the risk for bull trap lingers
After a sharp correction, Ripple (XRP) price sees bulls eagerly stepping into XRP. Bulls looked to be impatient as the price action did not even make it towards the S1 support level around $0.78. Instead, the price has been reversing back to the upside and is now pushing towards $0.84. Once the US session kicks in, expect more inflow from investors, and if equities can make new all-time highs, XRP could push beyond $0.88 and close there before going into the New year.
XRP/USD daily chart
The considerable risk, for now, is just that because bulls reversed the downtrend on no real important level, the rally could be short-lived with bulls already out of breath against $0.84. Bears would come in and trickle profit-taking amongst investors, which would push price-action back towards the opening price this morning as quickly as it went up. A bull trap would unfold and see XRP price collapse to $0.58 with the monthly S2 support level and a historically significant support level coming into play.