The cryptocurrency market has been trading sideways for the past week losing some of its notorious volatility. The total market capitalization has been ranging from $550 billion to $592 billion as most of the major cryptocurrencies like Bitcoin, Ethereum, and Ripple have been consolidating.
Bitcoin Price Analysis: Investors watch 2 key levels
On the 4-hour chart, Bitcoin price has established a descending triangle pattern which can extend further for the next week. The upper trendline resistance is currently located at $19,320. A breakout above this critical resistance point can quickly drive Bitcoin price towards $20,300 establishing a new all-time high.
Similarly, a breakout below the lower trendline at $18,600 would push Bitcoin price towards $17,500. The MACD just turned bearish but it’s not very significant. On the other hand, bulls have defended the 12-EMA and the 26-EMA as BTC’s price is currently closer to a breakout than anything else.
Ethereum Price Analysis: ETH aims for a 21% move
Ethereum has established some sort of ascending wedge on the 4-hour chart which is closer to a breakout than Bitcoin. The current price of ETH at $594 is closer to a breakdown below the lower trendline at $590.
Losing this level would quickly push Ethereum price towards $467. On the other hand, a breakout above the upper boundary of the pattern at $622 would drive Ethereum to a new 2020-high at around $756.
The In/Out of the Money Around Price chart seems to clearly favor the bulls as it shows only one significant resistance area between $596 and $613 but practically no opposition above it. On the way down, there are several support levels that are stronger than the resistance above.
Ripple Price Analysis: XRP suffers a major breakdown but manages to recover
In one of our last technical analysis articles, we discussed the possibility of XRP breaking out of a symmetrical triangle pattern on the 4-hour chart with a bearish price target of $0.4.
Ripple price did slip below the support trendline of the pattern and touched $0.54 but bears didn’t see any type of continuation and bulls quickly regained the 4-hour uptrend, climbing above the 12-EMA and the 26-EMA and eventually turning both into support levels.
A new symmetrical triangle pattern has been established inside the same time-frame but with different price targets. A breakout above the upper boundary would lead Ripple price towards $0.82 and a breakdown below would push it to $0.37.
Considering that the entire market is bullish, buyers probably have better odds of seeing a breakout this time, especially after the bears got no real continuation after the clear breakdown of the last triangle pattern.