Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto bull run on track amid surge in US inflation expectations


  • The crypto bull run has taken a hiatus, but US inflation's anticipated rise could jumpstart the rally.
  • Bitcoin is pivotal at $50,000 while facing intense resistance at the 100 SMA on the 4-hour chart.
  • Ethereum is likely to fall to $1,400, especially if the 50 SMA fails to hold in the near term.
  • Ripple dances in a no-trade range as consolidation looms.

The crypto bull run has taken a breather after the gruesome drop in value at the beginning of this week. Bitcoin led the freefall, dropping from $58,000 to $45,000. Generally, all cryptocurrencies retraced and are now holding above key support levels to prepare for another upswing to new yearly highs.

Amid the drop, investors are expecting that US inflation will continue to increase. The expectation has hit 2.38%, the highest level in roughly eight years. On the other hand, the Fed Chair, Jerome Powell, is confident that inflation will remain below the "two per cent longer-run objective."

Bitcoin pivotal at $50,000

The flagship cryptocurrency has not made a definitive move since the recovery from $45,000. Its upside has been capped under the 100 Simple Moving Average (SMA) on the 4-hour chart. On the other hand, the tug of war between the bears and bulls has left Bitcoin in lock-step, trading around $50,000.

A break above $52,500 (the 100 SMA) must come into the picture to open the door for gains to higher levels. The least resistance path is upwards, as revealed by the Moving Average Convergence Divergence (MACD). Therefore, buyers only need to increase their confidence in the recovery and focus on $60,000.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

On the downside, support at the 50 SMA is key to keeping the uptrend intact. Note that, if lost, Bitcoin may fall back to $45,000. However, buyer congestion is expected at $47,500 and may stop declines from extending downhill.

Ethereum bulls seem overwhelmed as declines linger

Ethereum is holding at ascending channel's lower edge. A recent upswing followed the establishment of support at $1,400. However, Ether failed to break the seller congestion at $1,700.

The short-term technical picture is vividly bearish, as observed from the MACD indicator. Since the drop from all-time highs, the MACD has not recovered. The wide divergence formed by the MACD line (blue) under the signal line cements the bears' strong position in the market.

If the support channel fails to hold, ETH will test the next anchor at the 50 SMA on the 4-hour chart. Depending on the drop's magnitude, Ethereum may extend the losses to $1,400 and $1,200, respectively.

ETH/USD-hour chart

ETH/USD-hour chart

It is worth noting that holding within the ascending channel will see the recovery mission continue. On the other hand, bulls must focus on breaking the hurdle at $1,700 and $1,800 to remove Ether from the woods so that they can focus on $2,000.

Ripple stuck in a no-trade zone

XRP's upside has been limited under $0.5 for a couple of days. Recovery from the dive to $0.35 had confirmed to investors that $0.65 was nigh. However, the seller congestion at $0.5 continues to give them sleepless nights.

On the downside, Ripple is immediately supported by the 23.6% Fibonacci retracement level. Additionally, the 200 SMA on the 4-hour chart is in line to prevent the token's value from dropping further. The levelling MACD confirms the sideways trading. Thus, Ripple may remain in this no-trade zone longer.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

Support at the 200 SMA is vital to the consolidation and the potential uptrend. However, if broken, XRP may spiral back to $0.35 and perhaps extend the bearish leg to $0.3 before a significant upswing occurs.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP