- Bitcoin struggles to sustain recovery to $40,000 amid reducing demand from institutional buyers like Grayscale.
- ETH/USD renews the uptrend following a dip toward $1,000, trading a new record high of $1,482.
- Ripple is in the middle of a lengthy consolidation, but a breakout is drawing much closer.
The cryptocurrency weekend session was characterized by mixed price reactions across the board, starting with Ethereum upswing toward $1,500 and Bitcoin‘s stability above $30,000. Besides Ether’s rally, other selected altcoins such as Aave, Uniswap, Synthetix and SushiSwap spiked massively.
The surge in these altcoins brings to light the beginning of the altcoin season, characterized by an increase in the price of tokens independent of Bitcoin. According to JP Morgan’s strategists, Bitcoin is running out of momentum to complete the return leg to $40,000.
Bitcoin‘s return to $40,000 will be an uphill battle
Bitcoin is exchanging hands at $33,370 at the time of writing. The 50 Simple Moving Average limits movement immediately on the upside. Additionally, the hypotenuse of the descending triangle pattern is also standing in the way of the uptrend.
A descending triangle is a bearish pattern in technical analysis. It is usually developed by drawing a trendline that connects a series of lower highs and a lateral line connecting a series of lows. Traders tend to look out for price action below the x-axis as it suggests a downward momentum is building and a breakdown is very likely.
The 200 SMA helps keep Bitcoin afloat, but the triangle support will be in jeopardy if BTC price slices through it. Moreover, a break under the x-axis might result in losses toward $22,000, as indicated by the triangle breakdown target.
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BTC/USD 4-hour chart
It is worth mentioning that Bitcoin will sustain the ongoing long-term uptrend if the price closes the day above the 50 SMA. A break above the hypotenuse could culminate in an upswing to levels around $42,000.
Ethereum needs to hold this crucial support to continue with uptrend
Ethereum spiked to new record highs, closing in on $1,500. This incredible bullish price action came after last week’s dip near $1,000. Recovery was quick and consistent over the weekend, with Ether stepping above the 100 SMA and the 50 SMA.
A new all-time high has been achieved at $1,482, but ETH has retreated to test the short-term support at $1,400. The pioneer smart contract token is trading at $1,482 amid the buyers’ rush to defend the support at $1,400. If the resistance at $1,500 is broken, Ethereum could begin the upswing to new price levels targeting $1,800 and $2,000.
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ETH/USD 4-hour chart
Trading under $1,400 is likely to trigger more sell orders, perhaps increase the overhead pressure, leading to declines towards $1,300. The 50 SMA and the 100 SMA will prevent losses from extending to $1,200 or $1,100.
Ripple consolidates nears extreme levels
Ripple is stuck in consolidation for over two weeks now. XRP price action has been limited under $0.3. At the time of writing, XRP trades at $0.277 while settling above the 200 SMA on the 4-hour chart and the Bollinger bands middle boundary.
The 50 SMA caps the cross-border cryptocurrency’s movement. Simultaneously, the Relative Strength Index appears to be levelling at the midline, thus adding credibility to the sideways action.
As the Bollinger bands squeeze, XRP draws nigh to a breakout. Settling above the 50 SMA may add weight to the coveted upswing above $0.3.
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XRP/USD 4-hour chart
On the downside, failure to close the day above the Bollinger Band middle boundary or the 200 SMA will call for more sell XRP orders. An increase in bearish positions will likely open the Pandora box, culminating in losses towards $0.25.
