The cryptocurrency market is still seeing bulls hold a solid grip on overall price momentum with price action seeing bearish influence evaporate from the market and major cryptocurrencies attempt a bullish breakout. While top cryptocurrencies saw solid gains on positive price rally, the upward momentum faced strong hurdle at critical price levels slightly lower to monthly highs which caused major cryptocurrencies to enter into consolidative price rally. However, profit booking activity that is expected to follow is likely to influence a corrective price action in the immediate future. Given the fact that price has moved beyond short term price limitations, further upward price action could be expected in the near future as long as price doesn’t decline back into the short term price limitation range.
Bitcoin: The BTC/USD pair saw price scale $13000 handle earlier today. The pair began its bullish price rally in late European market hours yesterday when the pair managed to break out of long term price range limitations. However, strong resistance found near $13000 handle became a hurdle which was too high for market bulls to scale resulting in consolidative price action in Asian market hours. While some decline is to be expected on corrective price rally, as long as price remains above psychological hurdle at $12435 which acts as roof of short term price hurdle that has prevented further gains, the pair is likely to regain upward momentum. A move between $12500 to $12000 handle could become a consolidative price action trapping further upside move in short term and a decline below $12000 could lead to bears gaining upper hand. A breach above $13100 handle is required for pair to move on to next leg of the bullish price rally.
Ethereum: The ETH/USD pair saw positive price action similar to Bitcoin as investor sentiment led to a scenario of a short burst of bullish price momentum in the cryptocurrency market. Ethereum managed to scale as high as $315 in trading session earlier today but the pair had already scaled as high as $318 earlier this week but fell back on profit booking activity which has led to corrective price action. However, the pair has managed to gain a solid foothold above $300 this week which could be considered as progress given the fact that $300 mark is a key psychological hurdle. The pair still remains trapped within short term price band limit unlike Bitcoin as it needs to scale resistance at $324/$325 handles and see further upside move for bulls to gain a dominant hold on price rally. The pair is likely to continue consolidative price action with profit booking activities continuing to act as hurdles in near future trading sessions. Expected support and resistance for the pair are at $300 & $324/5 handle respectively.
Ripple: The XRP/USD pair is seeing a relatively neutral price action given the fact that it saw little to no gains from BTC rally influenced price momentum in the cryptocurrency market earlier today. While the pair did see slight upward movement, the same can be considered negligible as it was very little progress well inside short term price limit and gains made from the rally had already been reversed and the pair is trading flat in late-Asian and early European market hours today. The pair currently lacks clear directional bias and maintains hold at $0.40 handle unchanged from the previous session. RSI indicator’s signal line used to calculate momentum of price action is at 49 level with an upward incline but price action is well below 9 & 100 SMA’s and runs slightly below albeit parallel to 50 SMA which suggests that consolidative price rally is likely to continue in immediate future. Expected support and resistance for the pair are at $0.39/$0.38 handle and $0.41/$0.42 handles respectively and a breach above $0.42 handle is required for bulls to gain dominance over price rally.
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