- Bitcoin sits onto support at $32,000 amid a collective push to jumpstart the uptrend to $42,000.
- Ethereum is having a difficult time staying above $1,300 despite investors’ decision to hold their tokens.
- Ripple continues to lose support levels mainly due to the growing resistance at $0.3.
The cryptocurrency market is a sea of red apart from a few selected altcoins. Ethereum appears to have slowed down the breakout to $3,000 after hitting a new all-time high barrier.
Ripple is stuck in consolidation, as a breakout above $0.3 becomes a pipe dream. On the other hand, Bitcoin is trading slightly under $32,000 while holding firmly to $31,000.
The altcoins that have managed to ignore the bearish wave include THETA with 16% in gains over the last 24 hours, Solana up 10% and Decred up 15%.
Bitcoin needs this critical support to jumpstart the uptrend
Bitcoin price is depending on holding the crucial support at $31,000 to restart the uptrend. As covered earlier, holders are hopeful that Bitcoin will lift off again, hence holding longer. Whales with at least 1,000 BTC have increased significantly in January, a bullish signal for the pioneer cryptocurrency.
Meanwhile, BTC is trading at $31,916 amid the push to settle above $32,000. The 200 Simple Moving Average on the 4-hour could absorb some of the selling pressure. Moreover, a break above the stubborn resistance at $34,500 could see the fear of missing out (FOMO) return to the market as investors extend their gaze to $42,000.
BTC/USD 4-hour chart
It is worth mentioning that Bitcoin will abandon the coveted recovery if support at $31,000 fails to hold. Similarly, another break under $30,000 could trigger panic selling among investors, as they cash out for profit. Lower support areas are envisaged at $25,000 and $22,000, respectively.
Ethereum’s upswing to $3,000 in jeopardy
Ethereum struggles to hold above $1,300 after the rejection from the all-time high, roughly at $1,481. The 50 Simple Moving Average has reinforced the immediate support on the 4-hour chart.
ETH must defend this support at all costs. Otherwise, an extended breakdown could come into the picture. The 100 SMA is in line to absorb the selling pressure, but the overhead pressure under $1,300 is likely to intensify, pushing ETH to $1,200. Note that Ethereum is not out of the woods yet and could retest areas close to $1,000.
ETH/USD 4-hour chart
Keeping the price above this zone may be the only way for Ether to sustain the expected uptrend to $3,000. The other two levels that must come down are $1,400 and $1,500, which will validate the uptrend. Ethereum holders, as discussed earlier, are planning on keeping their bags full, which is a very bullish signal.
Are Ripple bulls running out of options?
XRP has been stuck in consolidation for quite a while. There have been instances where the price has stepped above $0.3, but the uptrend was unsustainable.
For now, Ripple is trading at $0.266 after rejection at the 200 SMA. Recovery is a hard nut to crack due to the multiple hurdles, including the 50 SMA at $0.28, the 100 SMA, and $0.3.
Holding above $0.26 will ensure that potential losses to $0.24 are averted. Note that XRP bulls are getting exhausted and discouraged the more prolonged the price stays in consolidation as well as under $0.3.
XRP/USD 4-hour chart
The Relative Strength Index brings to light the ongoing sideways price action. A break above the midline would call for more buy orders, perhaps create enough force to boost XRP above $0.3. Recovery to $0.4 seems a farfetched idea based on the current technical picture. Still, trading beyond $0.3 will raise investor confidence in the cross-border token’s ability to rally to new yearly highs.