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XRP Really Needs That Breakout, Ethereum (ETH) Is Hiding Something, Nothing Stops Bitcoin (BTC) Before $71,000

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Sat, 18/05/2024 - 0:30
XRP Really Needs That Breakout, Ethereum (ETH) Is Hiding Something, Nothing Stops Bitcoin (BTC) Before $71,000
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Bitcoin has been on a steady rise, and the recent price action suggests that nothing can stop it before it hits $71,000. Analyzing the chart, BTC has successfully broken through several key resistance levels, finally showing us some bullish momentum.

The first significant resistance level was around $63,000, where Bitcoin faced some consolidation but eventually pushed through. The next resistance was the 50 EMA, currently sitting near $65,000. BTC has managed to break above this level as well, indicating strong buying pressure and confidence among investors.

BTCUSD
BTC/USDT Chart by TradingView

The price action shows BTC trading above the 50, 100 and 200 EMAs, a bullish signal suggesting that the upward trend is likely to continue. The 100 EMA around $62,000 and the 200 EMA at approximately $60,000 now act as strong support levels. As long as Bitcoin remains above these moving averages, the bullish trend is intact.

Looking ahead, the next major resistance level is around $70,000, which was the previous all-time high. If Bitcoin can break above this level, the path to $71,000 and beyond becomes much clearer. The volume analysis supports this bullish thesis, with increasing buying volume as BTC moves higher, indicating sustained interest and demand.

The RSI is currently above 60, suggesting that BTC is in bullish territory but not yet overbought. This gives Bitcoin room to run further without immediate risk of a significant pullback.

Ethereum's ace in hole

Ethereum has been in a tough spot in the last few weeks. However, the situation has somewhat changed in favor of bulls after the second-biggest cryptocurrency on the market broke the $3,000 threshold once again. But there is always a silver lining.

Despite the recent surge above $3,000, Ethereum is still facing significant resistance. The 100 EMA, currently around $3,060, and the 50 EMA, near $3,180, are critical levels that ETH needs to surpass for a sustained bullish trend. More importantly, those moving averages might converge in the foreseeable future, causing a volatility surge not many would expect.

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On the downside, if Ethereum fails to maintain its position above $3,000, it could retrace back to the support level at $2,800. This support is reinforced by the 200 EMA, which has historically acted as a strong foundation for ETH. A break below this level could signal a deeper correction, potentially dragging the price down to $2,500 or lower.

The volume data shows mixed signals. While there has been an uptick in buying volume as ETH crossed the $3,000 mark, it is not as significant as one would hope for a strong bullish continuation. This suggests that while there is interest, it is not enough to guarantee a sustained uptrend without further confirmation.

XRP's old nemesis

XRP has reached the lower border of the previously invalidated descending triangle. The lower border of that formation now acts as a resistance level which, if broken, can send XRP above $0.55. Apart from the historical resistance, there is a 26 EMA at the same price threshold that also acts as a resistance level.

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The price action shows XRP consolidating near the $0.52 mark, struggling to break through the resistance levels mentioned above. A successful breakout above these levels could potentially trigger a bullish run, pushing the price toward $0.60 and beyond. However, if XRP fails to break through, it might retrace to support levels around $0.50 or even lower.

The volume data suggests a lack of significant buying power at the moment. For a breakout to be successful, XRP needs a surge in volume, indicating increased buying interest. Without this, the resistance levels might hold, preventing any upward movement.

Additionally, the Relative Strength Index is currently around the neutral zone. This indicates that XRP is neither overbought nor oversold, giving it room to move in either direction. A rise in RSI above 60 could signal increased bullish momentum, supporting the potential breakout.

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