Despite the early gains, there’s a large potential for more upside. Using key levels, we analyzed the top 3 crypto’s potential next move.
Bitcoin retested its resistance level
The Bitcoin price is consolidating after an 8% rally on the week. On December 15, the digital currency has fallen 2% as bears have breached the 8-day exponential moving average. In spite of this, Bitcoin may still be poised to tackle even higher targets.
The Bitcoin price is currently at $17,784 per coin. It will reach plateau in its next target near $17,085. Be careful if you are early in your trade. If the Bitcoin price closes below the apex of the triangle, it’ll spell bad news for the Bitcoin price alike. Provided that Bitcoin can stabilize bitcoin above $ 17, 085 on a larger time frame and make a second attempt to breach $ 18, 245, it probably will show signs of better performance.
To recap, the bearish trend’s invalidation point is a daily closing candlestick below $17,085. If the bulls succeed, then it’s possible that a downtrend move targeting the yearly low at $15,476 would be valid trade idea. BTC would drop by 9% to this price action if it occurred.
Ethereum price retests the trend
The Ethereum price has been trending along with the Bitcoin price as of late. Earlier in the week, it spiked by 7% and some investors decided to take profit. However, at the time of writing, it is retesting the trend line that has supported it in the past – November 28th, December 7th, and December 12th.
The current price of Ethereum is $1,317. A lot of traders consider the fourth test of any trendline to be the catalyst for a market reversal. However, there are many markets where this theory does not hold true. As an early seller, you would be ill-advised to liquidate at current levels. To make it bearish, a closing candlestick below the $1,230 swing lows would suffice as an entry point to liquidate your holdings at $1,075. The ETH price would decline by 15%.
Traders should remember that this week’s 7% rally enabled the bulls to reconquer October’s previous support zone. The supportive barrier was crucial in ETH’s 30% uptrend rally throughout October into early November. So long as the level holds, ETH could still climb towards the $1,400 range mentioned in previous outlooks this month.
Ripple price has been exhibiting trouble
XRP price is down 1% this week when compared to a week ago. The market has been providing minimal opportunities for swing trades, and even though it’s only a 3-day decline, it still plays a role in the larger narrative. XRP’s price is currently 8% less than what it was at the beginning of December, which brings its yearly decline to 55%.
The current BTC XRP price is $0.379 from the last 5 minutes. The chart allows us to see how, on December 14, the bears created an Evening Star pattern and this could project a target zone for 1:1 shorting for the following days in the mid $0.36 zone. Ripple will decline by 9% if the bears manage to liquidate under November 21’s swing low of $ 0.345.
From the factors mentioned above, a bearish trend seems justified. One of the early signs of a reversal would be breaching the 21-day simple moving average, now standing at $0.395. If the bulls can jump over this indicator, a rally to October’s broken support zone at $0.44 is on deck. XRP price will increase by 16% if the bullish scenario plays out.