xrp crypto value

BTC climbs wall of worry, carries crypto complex higher

Time to squeeze out the last gains for 2021
Written by publisher team

  • Bitcoin price retraces the 2020 ascending trend line while printing a new high.
  • Ethereum price is stabilizing at the key support level, but the bearish momentum divergence remains a concern.
  • XRP price is bouncing off the 38.2% Fibonacci retracement level with the power in place and preparing to push higher.

Bitcoin price, along with Ethereum and Ripple, respected key support levels during the consolidation, with BTC and ETH correcting in time against the price, demonstrating the strength of the underlying bid.

Bitcoin Price Fights Momentum Divergence

Bitcoin price emerged from the recent consolidation around the 50% retracement of the April-July retracement at $46,849 and the 200-day SMA at $45,719, reclaiming the 2020 ascending trend line that has been affecting the price since August 7.

Today’s breakout, if it continues, has the potential to extend Bitcoin’s rally to the 78.6% retracement of the April-June retracement at $57,173 in the coming days before hitting massive resistance under the February, March, April and May highs. At this level, BTC investors can expect a significant pullback.

A bearish Bitcoin development that could interrupt the Bitcoin price journey higher is the divergence of the bearish momentum created on the daily Relative Strength Index (RSI). Bearish momentum divergence occurs when the RSI does not confirm new price highs with new highs.

BTC/USD daily chart

Even if the new bitcoin price breakout fails to gain momentum above the 2020 ascending trendline, it is well supported by the previous trifecta of support between $41,500 and $43,000, which includes the January high, February low and June high. , and 38.2% correction level. Only a daily close below $41,500 would change the bullish BTC story.

Here, FXStreet analysts are assessing which direction Bitcoin could head next as it appears to be ready for a correction.

Ethereum price faces short term hurdle

Ethereum price consolidation in time against price, keeping the downside limited to -10% and confirming previous resistance between $2900 and $3,050 has become a new layer of support for the smart contract giant.

The immediate potential for Ethereum price to set a path to an all-time high at $4,384 is affected by the 61.8% Fibonacci retracement resistance of the May-July retracement at $3,358 and the 261.8% Fibonacci extension of the 2018 secular retracement at $3,587. After these two levels, ETH is free to explore a new all-time high, including a jump to the 361.8% extension of the 2018 secular correction at $4,926.

Despite the bullish price structure, the daily RSI is showing bearish momentum divergence at the recent Ethereum high, indicating that the underlying momentum driving ETH has waned and questioning the ability of ETH to break the above resistance levels.

ETH/USD daily chart

ETH/USD daily chart

Of particular importance to the bullish forecast for Ethereum price is the durability of the support between $2,900 to $3,050. The daily close below offers the possibility for ETH to target the 50-day simple moving average at $2,486 or even the 200-day simple moving average at $2,313. It will be a significant bearish development, pointing to a more complex landing process or the resumption of the cyclical correction that started in May.

Here, FXStreet analysts assess which direction ETH might head next as it tests the crucial resistance level.

XRP price awaits golden cross

XRP price has exploded higher since closing above the noteworthy resistance of the 200-day SMA on August 7, posting a 65% gain last week and breaking the resistance compliant with the psychologically important $1.00 level and a 38.2% retracement of the April-July cycle. Ripple correction at $1.06.

This week, XRP price opted for consolidation, shedding around 20% and successfully testing the $1.00-$1.06 range with a strong three-day recovery. The bounce repositioned Ripple at the 50% retracement of the April-July retracement and removed the overbought condition from the daily RSI.

From now on, XRP price is poised to continue the new rally with some potential resistance at the 61.8% retracement at $1.40 before facing a heavy rebound at the 78.6% retracement, which is reinforced by a series of rallies recorded in the first half of May. It represents a return of approximately 30% of the current Ripple price.

Additionally, Ripple will show a bullish golden cross on the daily chart over the next week if the bullish momentum of XRP price continues.

XRP/USD daily chart

XRP/USD daily chart

A renewal of the XRP price pullback needs to hold the $1.00 to $1.06 range on a daily close basis. If not, Ripple will suffer a 15% fall to the 200-day SMA at $0.84, reducing bullish expectations for a break of not only the April high of $1.96 but also the all-time high of $3.30. It was registered in January 2018.

The major cryptocurrencies continue to display their bullish stance, discovering support at crucial support prices while showing no distribution on down days. It is compatible with the strong cryptocurrency market and creates energy for new highs and all-time highs for BTC and ETH.

Here, FXStreet analysts are assessing which direction Ripple could head next as it looks set to pull back before higher rallies.

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