• Bitcoin bulls confidently reclaimed position above $16,000 amid a building bullish momentum to $17,000.
  • Ethereum price action capped under the 50 SMA in the 4-hour timeframe, but potential rally eyes $480.
  • Ripple is still in the bulls’ hands while an ascending wedge pattern hints at a possible correction.

Investors in the cryptocurrency market have started to count days to the end of the year. The usual end of the year rally is expected to elevate crypto assets to higher levels, with Bitcoin possibly lifting off to a new all-time high above $20,000. The launch of Ethereum 2.0 is also a fundamental bullish indicator that the smart contract token may rally massively above $500.

On the other hand, investors anticipate that Ripple would follow Ethereum and Bitcoin’s footsteps and rally towards $1. Selected tokens in the decentralized finance (DeFi) sector have commenced their end of year rallies. Some of these tokens include SushiSwap, Uniswap and Aave.

Bitcoin on the verge of the ultimate breakout above $17,000

The flagship cryptocurrency slipped beneath $15,000 again over the weekend, but immense buyer congestion marginally above the 50 Simple Moving Average cut short the bearish leg. BTC resumed the uptrend shortly after and topped $16,000 on Monday during the Asian session.

At the time of writing, the king of cryptocurrencies is trading at $16,268 amid a building bullish momentum. The Relative Strength Index adds credibility to the optimistic outlook as it recovers above the midline.

Bitcoin bulls are looking forward to sending the price above $17,000, but first, the resistance at $16,500 (new yearly high) must come down. More hurdles might come into the picture above $17,000, but the fear of missing out (FOMO) is likely to catapult Bitcoin to new all-time highs.

BTC/USD 4-hour chart

Meanwhile, the bullish narrative will be invalidated if Bitcoin slumps under $16,000 again. The bearish price action is likely to trigger more sell orders. If Bitcoin breaks below the crucial 50 SMA support, we can expect losses to extend to the 100 SMA, currently at $15,000.

Ethereum to spike to $480 if the immediate hurdle is broken

The largest altcoin recovered from the support established at $440, following a rejection from $480. Following the rebound, ETH is doddering at $445, while bulls deal with the 50 SMA resistance.

Closing above this zone could add credibility to the recovery mission eyeing $480. Consolidation is likely to come into play in the near term, as highlighted by the RSI’s levelling motion at the midline.

ETH/USD price chart

ETH/USD 4-hour chart

The bearish outlook will hold in the event the smart contract token closes the day under the 50 SMA. Exhaustion might engulf the bullish camp leaving Ethereum’s bullish scenario vulnerable in bears’ hands. Declines could revisit the recent support at $440. On the other hand, if sell orders surge, Ether will be forced to explore the next support targets at the 100 SMA and 200 SMA.

Ripple prints a bearish pattern

The cross-border token has rallied extensively from the lows in November; nonetheless, the change remains small compared to Bitcoin’s. The resistance between $0.26 and $0.27 was finally overcome, allowing XRP to exchange hands at a monthly high of $0.278. Meanwhile, XRP retreated to confirm support at $0.265 before recovering slightly to $0.273 (overall market value).

XRP/USD 4-hour chart brings to light the formation of an ascending wedge pattern. The chart pattern is created by connecting an asset’s higher highs and higher lows with trendlines. It is used in technical analysis to signal that an uptrend is losing momentum and a correction could be brewing.

If XRP fails to break above the hurdle at $0.28 and push towards $0.3, bearish pressure may begin to surge as sell orders balloon. On the downside, price action under the wedge pattern will seek support at the 50 SMA, currently at $0.26 and the 200 SMA, at $0.25.

XRP/USD price chart

XRP/USD 4-hour chart

It is worth noting that the bearish picture will be sabotaged if Ripple rises above $0.28, as well as the wedge pattern resistance. Crossing above $0.3 might trigger massive buy orders and investors are likely to join the market to capitalize on the rally.

Similarly, the RSI shows that buyers are relatively in control at the moment. The golden cross formed by the 50 SMA crossing above the 200 SMA adds credence to the bullish picture.

(Excerpt) Read more Here | 2020-11-16 03:00:00
Image credit: source

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