- Bitcoin rebounded from the support at $14,500 but failed to overcome the hurdle at $15,500.
- Ethereum recovery from $420 hit a barrier at $460 before consolidation above $450 took over.
- Ripple price movements limited within the Bollinger bands as sideways price action awaits break out.
The cryptocurrency market was relatively slow-moving over the weekend for most of the digital assets. However, some selected altcoins like Aave sustained the uptrend, as reported earlier by FXStreet. Bitcoin also made a comeback from the support confirmed at $14,500.
On the other hand, Ethereum held over the support at $450, while Ripple was stuck above to $0.25. The rest of the market has remained fairly stable even as the new week trading commences. Consolidation will likely dominate as long as volatility remains reasonably unchanging.
Bitcoin brings stability to the market
Following an impressive week, where BTC achieved a new yearly high, activity has slowed down in the past couple of days. The flagship cryptocurrency is dancing at $15,409 after recovery hit a wall at $15,500.
A reversal seems imminent, as shown by the Relative Strength Index (RSI). However, the low trading volume suggests that price movement will be limited in the near term. In case bears gain momentum and push Bitcoin lower, support is anticipated at the 50 Simple Moving Average in the 4-hour timeframe. Extended losses under $14,000 will seek anchorage at the 100 SMA, while 200 SMA will prevent the break down to $12,000.
BTC/USD 4-hour chart
The Bollinger bands applied to the same chart illustrate a possible breakout in the coming sessions. The constriction that is starting to form suggests that volatility will decrease significantly before surging. If the price holds above the Bollinger band middle boundary, then there is a likelihood of the price shooting upwards to trade new yearly highs above $16,000.
BTC/USD 4-hour chart
Ethereum holding firmly to crucial support
Ethereum almost touched $450 as it continued with last week’s breakout in the early hours of Saturday 7. However, bears swung into action and forced Ethereum to support at $420. The tug of war continued with bulls lifting the smart contract token to $460 before settling above $450.
At the time of writing, Ether is dancing at $451 amid a subtly developing bearish momentum. Despite the bearish outlook, consolidation will likely take precedence. The sideways price action has also been highlighted by the Moving Average Convergence Divergence (MACD) as it levels slightly above the midline.
ETH/USD 4-hour chart
A symmetrical triangle pattern points towards a possible breakout. If a reversal above the pattern, ETH/USD could resume the uptrend eyeing $490 and $500, respectively.
On the flip side, price action below the triangle could lead to losses that will refresh the buyer congestion at $420 and $400. It is worth noting that the cryptoasset is still in the hands of the bulls due to the golden cross pattern formed by the 50 SMA crossing above the 100 SMA.
Ripple consolidates ahead of breakout
Ripple is holding firmly to the support at $0.25 after encountering acute resistance at $0.26. The selling pressure emanated from the 100 SMA in conjunction with the Bollinger band upper boundary. However, XRP’s immediate downside is protected by the middle curve of the Bollinger bands.
Besides, the RSI confirms the ongoing sideways trading by holding steadily above the midline. If buyers regain control over the price and step above $0.26, XRP might start the final journey to $0.3. On the downside, the 50 SMA adds weight to the immediate support; hence it is doubtful that a breakdown will occur towards $0.22.
XRP/USD 4-hour chart
On the other hand, declines will come into the picture if the 50 SMA support is broken. The buyer congestion at $0.24 might not be strong enough to hold XRP from plunging further. Therefore, the most prominent support is $0.23, while dire losses will seek to rebound at $0.23.