- Bitcoin closes in on $17,000, triggering an upward price action in selected altcoins like Litecoin.
- Ethereum bulls are focused on brushing shoulders with $500 but must hold the ascending parallel channel support.
- Ripple is on the verge of correction after hitting the critical level at $0.3 for the first time since September.
The cryptocurrency market continues to have an exciting week, with Bitcoin closing in on $17,000. According to CoinMarketCap, most of the cryptocurrencies have made a positive gain aggregate over the last seven days. Bitcoin is likely to rally a bit more, carrying the entire market upwards before a considerable correction comes into the picture.
Bitcoin price reaches the ultimate dilemma
Analysts in the cryptocurrency market are split right in the middle. On the one hand, some have held onto the notion that the flagship cryptocurrency will continue rallying towards $20,000. On the other hand, some believe that Bitcoin’s uptrend is approaching a tipping point, correcting before resuming the rally.
Meanwhile, Bitcoin recovered above $16,500 on Monday and achieved new yearly highs at $16,895. The approach to $17,000 hints at a possible spike to a new 2020 high while drawing closer to the all-time high at $20,000.
The up-trending 50 Simple Moving Average supports the bullish outlook underneath the price on the 4-hour chart. As reported, investors can use SMAs to buy the dip and still make profits during bull markets.
BTC/USD 4-hour chart
The bullish scenario will be invalidated on the flip side if the ascending wedge pattern rejects Bitcoin. Moreover, if sellers gain traction to pull Bitcoin under $16,000, a breakdown below the wedge pattern would be detrimental to the gains accrued in November.
Ethereum bulls relentless in the battle to $500
Ethereum faced an uphill battle during the initial run-up to $500, where they hit a barrier at $470. The smart contract giant retreated to seek refuge at $440 but resumed the uptrend within an ascending parallel channel. Despite the bullish action over the weekend, Ether stalled under $480. The support at $440 was confirmed again, giving way to the ongoing bullish momentum.
Meanwhile, ETH is trading at $465 while facing some delay due to the seller congestion at $470. Closing above the channel’s middle layer is likely to encourage more buyers to join the market, boosting Ether to $500. It is worth noting that the recovery delays might be encountered at $480 and $490 (June’s high).
ETH/USD 4-hour chart
On the downside, support at the 50 SMA will play a key role in ensuring Ethereum buyers remain primarily in control.
Ethereum might embark on a gain-trimming exercise whose impact could be massive if the price slips under the channel’s lower limit. Key support levels to keep in mind include the 100 SMA and the 200 SMA.
Ripple on the cusp of correction after hitting $0.3
The cross-border cryptocurrency hit levels slightly above $0.3 for the first time since the beginning of September. This achievement is significant for XRP following the uphill task buyers have encountered during the recovery journey from lows in September at $0.219.
XRP/USD 12-hour chart
Meanwhile, Ripple is trading at $0.298 after retreating from the monthly high. The TD Sequential indicator hints at a reversal after flashing a sell signal on the 12-hour chart. If the sell signal is validated, it could see XRP trade one to four bearish candles.
The first point of contact in case of declines would be $0.26, followed by the 200 SMA. Other vital levels to keep in mind are the 100 SMA, 50 SMA, at $0.24 and $0.219 respectively.