xrp cryptocurrency price

Time to squeeze out the last gains for 2021

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

  • Bitcoin price regains $47,065 and could be close to reclaiming $50,000 before the end of 2021.
  • Ethereum price action is in the foreground and could look to rise again above $4000.
  • The XRP bulls continue to work together and are testing $0.8390 for a breakout to the upside.

Bitcoin price is on top this morning as the bulls shift the price action to $46,000 and are already in the process of recovering $47,032. Ethereum is in the same setting, recovering $3,700 and the Relative Strength Index (RSI), revealing a non-volatile bullish reaction that clears the bears ahead of the new year. XRP is no different but has problems breaking above $0.8390 as bulls risk getting into a bull trap if they can’t break through.

Bitcoin Price Sees Bulls Return With $50,000 Insight Into New Year

Bitcoin (BTC) price has been under the influence of bears for the past few days as investors seem to be suffering from Christmas hangovers, not paying attention to the correction that has been developing in the markets. With BTC failing to take control of some important support levels, the bears seized the opportunity to control the price action and break even below the very important 200-day Simple Moving Average (SMA). With only two days of trading for 2021 remaining on the agenda, the bulls are regaining control and taking a turn in the price action towards more moderate levels.

Expect some more positive sentiment to emerge in Bitcoin price action as stock indices hit all-time highs yesterday, expect this to translate into some tailwinds. The first thing that will be brought up will be the 200-day simple moving average at $48,000 with a significant red historical level at $48760 as the first major test of the uptrend. Once above the 200-day SMA, expect more investors to join the rally and traction to start 2022 with some gains already on the books. This, combined with a tailwind, could push BTC on its own pace towards $50,019, reclaim the $50,000 mark and attempt to close above the monthly S1 support by New Year’s Eve.

BTC/USD daily chart

As this rally will be built from the two previously mentioned components, expect BTC price action to either move sideways or even drop further if one or two of these components start to fade or turn into headwinds. This means that the bulls cannot close again above $47,065 and instead head sideways between $46,000 and $47,000. In the worst-case scenario, the bulls have just entered a bull trap and will soon hit the bears and break above $44,088, and maybe even $43,030, which will bring BTC price action back to the lows we saw during the bearish knife event a few weeks ago.

Ethereum price sets $4,060 target by New Year’s Eve

Ethereum (ETH) price witnessed a sharp two-day correction as investors gave way to the bears to break the psychological level of $4,000 and even allow them to break $3,687, a historical level. But that’s how far the party goes for the bears, with the bulls taking back the same $3,687 this morning. When the bulls can keep this momentum going, expect more investors to come in during the US session and increase the price movement further towards $3800.

Once from there, it does get a little tricky for ETH price action as volume by tomorrow will have dwindled further, and with thin liquidity between both buying and selling volume, expect some volatility on New Years Eve. That could pull back in favor of the bulls with a lightning push that breaks through $4000 and may consolidate above $4,060. This level will be an ideal starting point for 2022 and will lead to more investor flow in January.

ETH/USD daily chart

ETH/USD daily chart

The only risk event that bulls and investors need to consider is that this could be a bullish trap that will soon see bears come with their vengeance and break ETH price action to the downside. ETH price will collapse and lead to a sell-off towards $3,391 with three strong support elements to start with a historical element, the S2 support level and the 200-day SMA in the same area.

XRP Price Sees Bullish Rally, But Bull Trap Risk Continues

After a sharp correction, the price of Ripple (XRP) sees bulls eagerly turning to XRP. The bulls seemed 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 trading session begins, expect more influx of investors, and if stocks ever manage to make new highs, XRP could cross $0.88 and close there before entering the new year.

XRP/USD daily chart

XRP/USD daily chart

The big danger, at the moment, is that as the bulls reversed the downside without any real significant level, the rally could be short-lived with the bulls already stopping at $0.84. Bears will come and flock to profit-taking among investors, which could push the price action back toward the opening price this morning as quickly as it has risen. The bull trap will unfold and see XRP price collapse to $0.58 with the monthly S2 support level and an important historical support level coming into play.

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