- Bitcoin price developing strongest weekly candlestick of the past ten weeks.
- Ethereum price prepped for a return to $4,500.
- XRP price triggers a bear trap and slaughters short-sellers; rally to $2.00 underway
Bitcoin price action has been on a tear, destroying short positions as bearish outlooks across the board as smashed. Ethereum price has a more difficult path than Bitcoin, but the structure is clearly bullish. XRP price enters a short-squeeze, likely liquidating many leveraged positions on unregulated derivatives platforms.
Bitcoin price poised to hit $55,000, pause, then target new all-time highs
Bitcoin price action has been phenomenal during the Christmas trading week. Spiking more than 11% so far this week with a target of a 20% upswing to end the week, the new leg higher for Bitcoin has likely begun.
Contributing to Bitcoin’s performance and an extended bullish outlook is three key events:
- New 2021 Volume Point Of Control printed at $47,500.
- Weekly bullish engulfing candlestick formed, ending the current seven-week Gann ‘death cycle’.
- Enormous hidden bullish divergence between the candlestick chart and the Composite Index.
Traders should expect a slight pause and some profit-taking near the weekly Tenkan-Sen at $55,000.
Invalidation of this bullish outlook will only occur if Bitcoin experiences a weekly close below the top of the Cloud (Senkou Span A) at or below $43,000.
Ethereum price to test resistance at $4,150 and then $4,500 before making new all-time highs
Ethereum price has two primary resistance zone up ahead. The first is a confluence zone of two Ichimoku levels at the $4,150 level: Senkou Span B (most substantial level of support/resistance in the Ichimoku system) and the Kijun-Sen. If buyers can close Ethereum above that price level, the next test is not far away.
The final resistance zone exists between $4,300 and $4,500. The top of the current bull flag, the Cloud, and 61.8% Fibonacci expansion exist within that range. If Ethereum can breach that zone, then the next move for Ethereum is new all-time highs near the $7,300 value area.
Downside risks remain as long as Ethereum is below the Cloud. For example, a close below $3,700 would probably trigger a return to the $2,800 value area.
XRP price begins massive short squeeze, the rally above $1 to $2 begins
XRP price action has been one of the more unexpected movers of the past week. Thus far, the trading range for the Christmas trading week has exceeded the highs of the past four weeks, triggering a large number of short-sellers along the way. A battle between bulls and bears near the $1 level is likely to continue, but bulls are better positioned to win that conflict.
The XRP weekly chart has one significant benefit that many altcoins do not have: a thin Ichimoku Cloud. Thin Clouds represent weakness and ease of movement. While Senkou Span B is extraordinarily flat and has been in a flat condition for thirty-six weeks, it may not behave as a significant source of resistance due to the thin nature of the overall Cloud.
XRP/USDT Weekly Ichimoku Chart
However, as long as XRP price remains below the Cloud, it is still considered bearish. This bullish outlook would be invalid if a close below the $0.80 value area occurred. XRP price would probably flash-crash towards the $0.50 level in that scenario.
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
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.