Crypto market in shambles as BTC consolidates

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Bitcoin’s price drops, hinting at a new test of the weekly 50 SMA at $ 44,778. Ethereum price is bracing for a 16% breakout of the descending corner pattern. Ripple price could see an 11% increase to $ 0.96 as it prepares for a second leg.

The price of Bitcoin moves sideways, trapped between crucial weekly moving averages. This consolidation had a positive ripple effect on the price of Ethereum which sets up a bullish pattern ready for a breakout. Ripple, meanwhile, has already embarked on an ascent and is preparing for his second ascent.

Bitcoin Price Expects Short-Term Losses

The price of Bitcoin is in a slow downtrend and seeks to retest the 50-week Simple Moving Average (SMA) at $ 44,778. While this move causes BTC to drop by around 3%, it could cause a rebound, triggering a bullish outlook.

A successful rebound on said SMA will pave the way for retesting the 21 week SMA at $ 51,256 and, in a very bullish case, the resistance level of $ 53,709. If buy orders continue to flow, the crypto pioneer is likely to continue its ascent and break through the $ 57,845 mark.

Either way, investors should note that this bullish outlook hinges on a successful rebound on the 50-week SMA at $ 44,778.

1 day BTC / USD chart

If the price of Bitcoin crosses the SMA at $ 44,778, there is a good chance that it will continue its descent to $ 40,596 to collect the cash that remains below. A daily close below $ 44,778 will invalidate the bullish thesis detailed above.

Ethereum price aims for higher highs

Ethereum price describes a descending wedge pattern since November 28. This technical formation is achieved by connecting the three lowest and the four lowest formed during this period with the help of trend lines.

The setup predicts a 16% rise, obtained by adding the distance between the first swing high and swing low to the break point at $ 3,912, which puts ETH at $ 4,533.

Assuming the price of Ethereum could rebound from the 70.5% retracement level at $ 3,780, that rise would constitute a 20% ascent. Therefore, investors should closely watch the retracement reversal.

4 hour ETH / USD chart

On the other hand, if the price of Ethereum breaks the barriers of $ 3,780 and $ 3,740, it is likely to move lower to retest the lower of the range at $ 3,669. A four hour candlestick close to this level will create a lower low, invalidating the bullish thesis.

Ripple price competes to keep rising

Ripple price has consolidated around the $ 0.837 resistance barrier for over a week. The increased buying pressure caused the price of XRP to rise 11%, pushing it to set a potential high at $ 0.917.

While the initial surge was noticeable, investors can expect the price of XRP to retrace before setting off another rally. The support level of 0.837 will likely be marked again soon. Assuming this to happen, market participants can expect the Ripple price to climb 12% to test the $ 0.936 hurdle again.

In some cases, the XRP price may extend this lead to collect the remaining liquidity above the obstacles of $ 0.980 or $ 1.018.

4 hour XRP / USD chart

As things improve for the Ripple price, a breakdown of the support level of $ 0.837 will indicate weakness among buyers. In this case, the price of XRP will likely drop below the demand barrier of $ 0.749 to collect the cash there. A daily close below this level will indicate that buyers are unwilling to raise the price and invalidate the bullish discount token thesis.

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