- Bitcoin holds between the resistance at $15,500 and support at $15,000 as consolidation leads.
- Ethereum is pivotal at $460 amid the push to establish higher support and avoid potential losses to $430.
- Ripple sideways trading action could last longer, especially with the tough resistance at $0.26.
The world celebrated the news that a gigantic pharma company from the United States had developed a 90% vaccine in the prevention of COVID-19. The information reverberated in global markets, with related stocks recording massive gains. However, Bitcoin and the entire cryptocurrency market ignored developments as stability reigned.
It’s uncertain how Bitcoin will react to the final news of the production and availability of the coronavirus vaccine worldwide. Many analysts have attributed the recent gains to the pressure channeled into the stock market by the pandemic and the recently concluded United States presidential election.
Meanwhile, the flagship cryptocurrency has settled for consolidation between $15,000 and $15,500. Other major cryptocurrencies like Ethereum and Ripple are following closely in Bitcoin’s footsteps. Although sideways trading is dominant in the cryptocurrency market, the trend appears to be leaning to the bullish side.
Bitcoin calm before an imminent breakout
The consolidation is well illustrated on the 4-hour chart using the Bollinger bands. BTC is stable above the middle boundary of the indicator. A bullish building momentum hints at a potential breakout to levels past the recently achieved new yearly highs at $15,890. Moreover, the ongoing constriction of the bands points towards a potential breakout in the near term.
The existence of multiple and intense support areas insinuates that Bitcoin will push above the 2020 peak and extend the bullish leg to its all-time high around $20,000. Some of these key support areas include $15,000, reinforced by the 50 Simple Moving Average in the 4-hour timeframe, last week’s critical support at $14,500 and the 100 SMA.
BTC/USD price chart
On the other hand, a reversal may come into the picture if Bitcoin dives under the middle layer of the Bollinger bands. Price action like this one could trigger immense selling pressure, pushing through crucial support areas.
Ethereum seeks higher support
Ethereum bulls have activated their defense mechanisms following a second rejection marginally below $470. The hunt for higher support is such that Ethereum can resume the uptrend to $500 before launching the much-anticipated ETH 2.0.
If the losses progress beneath $450 and Ethereum slides under the descending trendline, a selloff could further trigger Ethereum diving. Other tentative support areas include $440, the 50 SMA on the 4-hour chart and the 100 SMA, currently holding the ground at $410.
ETH/USD 4-hour chart
On the upside, price action would resume to $500 if Ethereum onto the support at $460. Higher support will allow ample time to focus on how to bring down the next resistance at $470 and $490, respectively.
Ripple motionless under $0.26
XRP lost the ground above $0.26 after hitting a barrier under $0.27. Robust support appears to have formed beyond the confluence created by the 50 SMA and the Bollinger band’s middle boundary.
The cross borders token’s immediate upside is barricaded by the 100 SMA as well as the seller congestion at $0.26. Trading above these two hurdles would call for more buy orders, creating enough volume to lift XRP to $0.3.
In the meantime, the prevailing sideways action might hold longer, as observed by the Bollinger bands. Similarly, the Moving Average Convergence Divergence (MACD) adds credibility to the consolidation.
XRP/USD 4-hour chart
It is worth mentioning that consolidation and the imminent breakout to $0.3 will be invalidated if Ripple slides under the Bollinger band middle boundary and the 50 SMA. Bearish momentum could also build to the short term support at $0.24. If XRP overshoots this zone, the next tentative demand area would be the 200 SMA.