The price of Bitcoin is currently bearish, with indications that it may soon move below the lower boundary of its channel, sitting at $21,746. The 200-day Exponential Moving Average (EMA) continues to create overhead pressure, further suppressing the cryptocurrency. As a result, the current outlook for Ethereum (ETH) and Ripple (XRP) is also discouraging, as they tend to follow Bitcoin's lead.
Meanwhile, Ethereum's price has managed to repel a key confluence level at $1,508, but it may struggle to overcome the overhead pressure that could overpower the bulls. On the other hand, Ripple's price has recently broken above a descending parallel channel at $0.3726, but its bearish rating remains.
During Wednesday's trading session, Bitcoin price faced significant overhead pressure from the 50-day EMA at $22,319. Furthermore, the 200-day EMA at $21,790 on Thursday may create further suppression, potentially leading to a drop below the channel's lower boundary. As a result, the price is expected to decline further and potentially reach the 100-day EMA at $21,309. Additionally, the recent news of US President Joe Biden's proposed crypto tax updates may impact cryptocurrency traders, adding to the market's uncertainty.
According to the Relative Strength Index (RSI), which demonstrated a price strength of 38, the current path of least resistance for Bitcoin price appears to be downward. In the event that selling pressure persists, the price of Bitcoin could drop towards the support level at $19,000, resulting in a decline of approximately 12.60% from its current price of $21,746.
Looking at the BTC/USDT 1-day chart, if bulls manage to defend their position above the channel's lower boundary, Bitcoin price may see an increase. However, this would require overcoming the resistance posed by the 200-day EMA at $21,790, as they did on January 14.
Should bulls surpass the 200-day EMA, they would then need to bypass the 50-day EMA at $22,319. If the price of Bitcoin manages to close above this level for a daily candlestick, it would invalidate the bearish outlook. In this scenario, they may aim to reach the major resistance level at $25,242, representing a 16% increase from the current level.
Similar to Bitcoin, Ethereum (ETH) price is currently experiencing a bearish trend and struggling to maintain its position above a significant level. The 50-day EMA at $1,567 has caused considerable overhead pressure, causing a decline in its value during Wednesday's trading session. In Thursday's session, this has resulted in the support offered by the 200-day EMA at $1,546 being flipped to resistance. As the momentum of buyers continues to decrease, ETH may fall below the support confluence, represented by the horizontal level and the 100-day EMA at $1,509.
If the price falls below this level, it may decline towards $1,212 before a possible trend reversal occurs or even revisit the $990 support floor in a worst-case scenario.
ETH/USDT 1-day Chart
On the other hand, the RSI indicator suggests a potential increase in buying activity, with more buyers entering the market. For Ethereum's price to rise, it must first break through the 200-day EMA resistance at $1,546 and the 50-day EMA resistance at $1,567. A daily close above these EMAs would contradict the bearish outlook.
In a more optimistic scenario, the Ethereum price could surge towards the $1,727 resistance level and potentially target the major resistance at $1,853. Such a rise would indicate a 20.55% increase from the current price of $1,539.
During Tuesday's trading session, Ripple (XRP) price broke out of a descending parallel channel, which could be seen as a positive move following the perceived favorable ruling in the Ripple vs. SEC case. However, despite this breakout, the bearish rating for XRP remains unchanged.
As of writing, XRP was priced at $0.3868, reflecting a 2.62% increase over the last day. Despite a 30% rise in 24-hour trading volume to approximately $1.945 billion, XRP is currently trading with a bearish inclination. Early profit-taking by investors is holding XRP back, as indicated by the resistance level at $0.3933 and the 100-day EMA at $0.3878. If selling pressure persists, XRP could drop below the 50-day EMA at $0.3848 and enter a technical formation.
Should the bearish trend continue, the Ripple price could fall to the $0.3627 or $0.3539 level. In extreme scenarios, the price could plummet to the $0.3321 swing low. Notably, the Relative Strength Index (RSI) was in the optimal range, but it has recently turned downwards, indicating that bears are taking control.
Looking at the XRP/USDT 1-day chart, the immediate resistance level for Ripple price was at $0.3878, which was presented by the 100-day EMA. However, a daily candlestick close above this level would invalidate the bearish narrative.
If the buying momentum increases and XRP manages to surpass this level, the next hurdle would be at $0.3933. Beyond this level, the Ripple price would face the next obstacle at $0.4085, which is offered by the 200-day EMA. If XRP can surpass this resistance, it could climb up towards the $0.4233 resistance level, which would be a 9.36% increase from the current levels.
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