- Bitcoin is on the verge of another volatility spike.
- Ethereum bulls target at $800 after a triangle breakthrough.
- XRP needs to stay above $0.54 to have a chance for another bullish wave.
The rally on the cryptocurrency market has slowed down as Bitcoin, and many altcoins have retreated from the recent highs. Despite the downside correction, the overall sentiments are still bullish, meaning that the growth may be resumed. The meaningful retreat may be regarded as a chance to re-enter the market at lower prices.
However, several major altcoins are outperforming the market. Bitcoin Cash is about 10% higher on a day-to-day basis. Dogecoin has gone through the roof with 30% gains after Elon Musk's tweet.
Bitcoin hits the pause button after clearing $24,000
BTC topped at $24,300 on Sunday and retreated to $23,750 by the time of writing. The pioneer cryptocurrency gained over 24% on a week-to-week basis, while its market capitalization increased to $442 billion, which is equal to 66% of the total value of all digital assets in circulation.
The on-chain data and technical indicators show that Bitcoin may be ready to resume the upside and potentially test new all-time highs until the end of the year.
BTC, Age Consumed
Bitcoin's Age Consumed indicator implies that the lull may be short-lived. This metric reveals how many BTC have changed addresses on a given day multiplied by the number of days since they last moved. A spike of this metric is a harbinger of the upcoming volatility as it means that a significant amount of previously idle BTC tokens are moving between addresses.
BTC, Holders Distribution
Meanwhile, Bitcoin's holders' distribution data show that the number of whales holding from 10,000 to 100,000 coins is close to all-time highs. As large investors are buying, their demand may eventually transform into an immense upside pressure.
BTC, Global In/Out of the Money
Global In/Out of the Money shows that the first significant support comes on approach to $22,800 as about 1 million addresses purchased over 600,000 BTC on approach to that level. As long as the price stays above this area, Bitcoin has more room to go up.
Ethereum bull target $800
Ethereum hit the top at $677 on December 17 and retreated to $631 by the time of writing. The second-largest digital asset with the current market value of $73 billion lost nearly 4% on a day-to-day basis, though it is still 9% higher on a weekly basis.
ETH, daily chart
From the technical point of view, ETH broke above the x-axis of an ascending triangle at $620. The price returned to this barrier to retest it as a support, and as long as it holds, ETH is poised for a further increase with the potential target at $800. A sustainable move below this area will invalidate the immediate bullish scenario and open up the way to an extended correction towards $530 (daily EMA50).
XRP struggles to retain a positive bias
Ripple's XRP has lost over 6% on a day-to-day basis to trade at $0.54 by the time of writing. The third-largest digital asset failed to capitalize on the recent Bitcoin's rally and dropped below critical $0.6.
XRP, 4-hour chart
Despite the sell-off, a prominent trader and analyst, Peter Brandt, insists that XRP is poised to retest $1 regardless of the volatility. However, the coin needs to regain ground above $0.61 before this forecast may come true. This barrier is created by 78.6% Fibonacci retracement level. A 4-hr candlestick close above it could help propel this cryptocurrency higher.
On the other hand, a sustainable move below $0.54 (50% Fibo retracement) will worsen the technical picture and push the price to $0.50.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
![Celebrity meme coins controversy continues amid Pump.fun revenue dominance](https://editorial.fxstreet.com/images/Resources/CryptoWorldSEO3_XtraSmall.jpg)
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
![PEPE's on-chain metrics indicate potential rally after weeks of silence](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_XtraSmall.jpg)
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
![Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/ethereum_2_XtraSmall.jpg)
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
![Crypto community blasts Polkadot following report of treasury spending](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Polkadot/polkadot-150x150logo-637399979978734311_XtraSmall.png)
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
![Bitcoin: BTC price correction could end in July, according to seasonal data](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.