The crypto markets have encountered some selling pressure with the cumulative market value dropping from $1.07 billion to $1.02 billion. Bitcoin dominance is still holding around 65% but has plunged from levels near 70% recorded in recent days. The drop in dominance means that altcoins are continuing to outperform bitcoin.
Altcoin season this time around seems to be spearheaded by Ethereum’s surge to a new record high of about $1,446.
Bitcoin Seems Ready To Rise To $50K
Currently, bitcoin is yet to hit a market top, as highlighted earlier. The investors in the market are optimistic that the biggest crypto will resume a strong uptrend and surge past the recent record high of $42,000.
The 4-hour chart shows the formation of a two-week symmetrical triangle pattern. This pattern is arrived at by drawing two trendlines that connecting the asset’s lower highs and higher lows. The trendlines then meet at a point that is known as an apex.
A breakout is imminent before these lines converge. It has an accurate target measured from the highest and lowest points of the triangle. The distance between these points is then added to the breakout point that would currently target $50,000.
However, bitcoin must recover the lost ground above the 50 SMA and the 100 SMA to validate that uptrend. Hence, any form of price action that exceeds $38,000 will play an integral role in the breakout happening.
Investors need to know that the symmetrical triangle may turn into an opposite action which might eventually result in a breakdown towards $20,000. Thus, it is critical to wait for the confirmation of the breakout. If the latter does not happen, major losses will come up resulting in drops below $34,000 and then $30,000.
Ethereum Seeks Higher Support
The biggest altcoin has retreated from its recently-set all-time high searching for a higher low. The support located at the ascending channel’s middle boundary has already broken down, leaving Ether with the lower edge anchorage of about $1,300.
To sustain the uptrend, Ether must remain above $1,200 as mentioned earlier, if not positioned at $1,300. In the meantime, the TD Sequential indicator recently flashed a sell signal on the 4-hour chart. That call to sell came in a green nine candlestick. If it becomes definite, the negative outlook may result in declines in one-to-four daily candlesticks.
On the flip side, another liftoff to new all-time highs will happen if Ether finishes the day above $1,400. Expected gains to $2,000 will get confirmed by a price action beyond the $1,500 level and the ascending parallel channel’s upper boundary.
Ripple Testing Critical Support And Resistance
Ripple’s XRP surged to levels above $0.3 despite the many delistings that are happening due to a $1.3 billion lawsuit against the firm. However, that breakout was not sustainable. The 200 SMA on the 4-hour chart was tested but it remained quite unshaken. A correction then followed which left XRP pivotal at $0.3.
Turning to the downside, XRP is strongly supported by the 50 SMA that sits just above the 100 SMA. That support has formed around $0.288 and it remains quite fundamental to Ripple’s short-term uptrend. Today, the least resistance path appears downwards mostly with the RSI rejection from levels near the overbought zone.