- BTC/USD gradually ascends toward $40,000 after Grayscale bought $590 million worth of Bitcoin.
- Ethereum eyes new record highs after taking down the seller congestion at $1,350 and closing in on $1,400.
- Ripple settles above $0.3, but closing day above the 200 SMA will validate the spike to $0.4.
Ethereum seems to have stolen Bitcoin’s spotlight, leading the cryptocurrency price action. The pioneer altcoin is up 13% in 24 hours after hitting above the former January peak at $1,350. For now, all eyes are glued on Ethereum’s ability to hit new all-time highs.
On the other hand, Bitcoin has renewed the uptrend for gains eyeing $40,000 after Grayscale Investments purchased $590 million worth of additional BTC. Similarly, Ripple has broken the stubborn resistance at $0.3 and looks to be getting ready for a leg up to $0.4.
Other altcoins that continue rising in the bull market are Litecoin up 15%, VeChain up 10%, NEO up 12% and Huobi Token up 12%. The rest of the crypto assets are relatively green, perhaps waiting for Bitcoin to join in the Ethereum rally and help jumpstart their uptrends.
Bitcoin resumes the uptrend eyeing $40,000
Bitcoin has recovered to levels above $37,000, following in Ethereum’s footsteps. The resistance at $38,000 must be broken for BTC to extend its price action to $40,000. The Relative Strength Index appears to be validating the bullish grip after crossing above the midline.
Grayscale’s additional purchase of Bitcoin suggests that long-term investors and institutional buyers are confident in BTC, pushing for new record highs. If the tailwind continues, a $40,000 prediction will be conservative for Bitcoin. A pennant pattern in the 4-hour chart hints that the flagship cryptocurrency might be heading for $50,000 in the short run.
BTC/USD 4-hour chart
On the flip side, support at $37,000 must hold to avoid potential losses. A death cross pattern on the 4-hour occurred after the 50 Simple Moving Average crossed under the 100 SMA. This shows that Bitcoin is not out of danger yet; hence overhead pressure may grow, forcing the price to lower, revisiting $34,000.
Ethereum takes off to new all-time highs
Ethereum, as reported, is leading the price action in the cryptocurrency market. In addition to breaking above $1,350 (recent ytd high), Ether is drawing closer to the ultimate hurdle at $1,400. Trading above this level will validate the gains to new record highs.
A glance at the Moving Average Convergence Divergence (MACD) adds credibility to the expected uptrend. The technical indicator tends to follow the path of a trend and calculates its momentum.
In the meantime, it appears to be turning bullish within the same time frame for the first time since early January. As the 12-day exponential moving average crossed above the 26-day exponential moving average, the odds for a bullish impulse increased significantly.
ETH/USD 4-hour chart
If Ether fails to close the day above $1,400, a correction may come into the picture. The first point of contact would be $1,350 (former resistance). Support at this level will ensure that losses are averted entirely. However, if the price slices through it, Ethereum would extend the bearish leg back to $1,300 (formidable support).
Ripple prepares for liftoff to $0.4
XRP/USD has brought down the resistance at $0.30 for the first time since the breakdown on Monday last week. The spike was confirmed after the price closed the day above the 50 SMA, as discussed on January 18.
Meanwhile, the cross-border token is teetering at $0.307 amid the mission to extend this uptrend to $0.4. A daily close above the 200 SMA would add credibility to the price action. On the other hand, establishing higher support above $0.3 may help bulls focus on the $0.4 medium-term hurdle.
XRP/USD 4-hour chart
It is worth mentioning that the RSI suggests that the current uptrend may lose steam unless XRP rises above the 200 SMA. Correction under $0.3 could culminate in a gain-trimming exercise toward $0.25. The 50 SMA and the 100 SMA are likely to absorb some of the selling pressure, perhaps prevent Ripple from dropping to $0.25.