Bitcoin price fluctuates around a key level after testing for liquidity above that level. This suggests BTC will consolidate here before rising further. Ethereum, Ripple have closely followed the leading cryptocurrency and may soon rise to higher highs.
Bitcoin is facing a pivotal moment
BTC broke Monday’s high of $47,565 to peak at $49.527. While BTC could move higher and retest the psychological $50,000 level, traders must watch out for the possibility that the benchmark cryptocurrency could drop, reaching Monday’s low of $45,550.
If the bulls can withstand the profit-taking pressure from short-term traders, it is highly likely that BTC will retest $50,000 and hit last week’s high of $50,083. In some cases, Bitcoin price could rally as high as the $53,618 resistance level. Marks an 8.6% increase from the current price.
Increased profit taking by traders could end in profits over the past 48 hours. That move could cause BTC to hit Monday’s low of $45,550 or re-scan last week’s low of $45,438.
ETH breaks out of a bullish pattern
ETH has been forming a descending wedge since Nov. 28. This is a bullish pattern and usually leads to a breakout in most cases.
Technical formation predicts a 16% rally to $4,533, found by connecting the height of the wedge with a breakout at $3,912.
ETH has now broken out above this pattern and is about to retest the $4,155 resistance area. Initially, however, traders can expect a retracement to $3,912 or below to $3.823 (0.62 Fib retracement).
A bounce from these levels will reinforce the breakout, suggesting that ETH can rally 16% to $4,535.
If Ethereum price hits a lower low below $3,669, which coincides with the low of the trading range, that would invalidate the bullish thesis. In this case, ETH could retest the strong support at $3,415.
XRP is rising and could retest key resistance
XRP broke a downtrend line on December 18, rallying 19% to a high of $0.971. That strength could help XRP retest the critical resistance at $1,015.
However, the chances of a breakout above this level are slim, especially since BTC could experience a minor retracement.
Due to the correlation between the two, XRP price could move in line with the benchmark cryptocurrency and undergo a correction. Alternatively, short-term traders can take profits after XRP rallies 19% shortly.
If this drop pushes Ripple price below $0.688, it will hit a lower low, invalidating the bullish thesis.