Key Insights
- The crypto market is bracing for volatility this week, with three of the largest cryptocurrencies showing signs of incoming volatility.
- Bitcoin must keep from breaking below the $100,000 zone to push forward to $125,000.
- Ethereum must keep from breaking below the $3,125 price level to continue forward to the $3,700 zone.
- XRP has to stay above $2.9 to continue further upwards to $5.
The crypto market continues to make waves in the financial space, with juggernauts like Bitcoin, Ethereum and XRP taking the center stage.
Bitcoin and Ethereum on the one hand, are retesting critical support levels.
XRP on the other, is managing to sustain its bullish momentum and could be looking towards a breakout from an interesting pattern.
Here’s a closer look at the performances of each of these cryptocurrencies, and what could be next for them.
Bitcoin Eyes Stability at $100K Support
According to the daily charts, Bitcoin rebounded strongly last week, especially after the release of the CPI data on Wednesday.
The cryptocurrency soared by more than 10% after an initial crash to the $90,000 zone between Monday and Tuesday, eventually ending up above the $100,000 zone.
However, this rally was somewhat shortlived, considering the cryptocurrency’s behavior after hitting the $106,000 resistance.
Monday has brought Bitcoin into a new phase of bullishness as shown above, with its rebound after retesting the falling wedge.
The cryptocurrency has so far risen by around 3% over the last 24 hours, with a current price of $108,000.
Going forward, the cryptocurrency’s $100,000 price level serves as the strongest psychological support.
Holding above this level is an encouraging signal for a continuation to the upside.
However, if a break below occurs for any reason, Bitcoin could crash further down to the next psychological level around $90,000.
If this $100,000 price level holds, Bitcoin could be hitting the $125,000 zone in no time.
Ethereum Targets Recovery Above $3,125
Ethereum is also performing well on all timeframes, even though it remains trapped underneath the $3,500 price level.
On Monday this week, the cryptocurrency is showing signs of a recovery after retesting its 200-day EMA at $3,125.
The cryptocurrency now has a current price of $3,392 with an incoming break above $3,500.
According to the charts, if Ethereum successfully holds above its 200-day EMA (red line) as shown, it could be on its way towards challenging the $3,730 resistance level.
The charts show the RSI reading currently at 46—which is below neutral and indicates that the bears are slightly stronger than the bulls.
In more positive news, the MACD on this timeframe is on the verge of a bullish crossover.
This indicates that the bulls might be ready to retake the baton from the bears.
Ethereum needs to avoid a drop towards the $3,125 support to avoid a correction further down to the psychological $3,000 level.
Ripple Extends Bullish Momentum Toward $3.63
According to the charts, XRP;s price action has been incredible.
The cryptocurrency rallied by 30% last week, after breaking above a symmetric triangle and above the $3 mark.
The cryptocurrency struggled around the $3.3 price level over the weekend, but and is still attempting to continue above this price level.
According to the charts, XRP is targeting a push towards the $3.63 price level.
The RSI reading of 65 on the daily chart supports this outlook, and the dominance of the bulls.
The Fibonacci retracement tool shows that XRP is at risk of becoming bearish if it breaks below the $2.9 price level, where it might fall further down to the $2.5 zone.
Overall, the top three cryptocurrencies are navigating important price levels, and are setting the stage for massive price movements.
Traders should closely monitor what happens around the $100,000 mark for Ethereum, the $3,125 zone for Ethereum and the $2.9 price level for XRP.
