- Bitcoin price endures a steep profit-taking frenzy.
- Ethereum price is testing lower levels of support after a 7% rally on the week.
- XRP price is down 8% on the month and 55% on the year.
The crypto market has early bulls in the market taking a profit. Despite this fact, there is a possibility for more upside. Key levels have been defined to determine the top 3 crypto’s next potential move.
Bitcoin price retests resistance
Bitcoin price is undergoing a steep profit-taking consolidation following the bull’s 8% rally on the week. On December 15, the peer-to-peer digital currency was down 2% on the day as the bears are prompting a breach of the 8-day exponential moving average. Although the BTC price has room to fall, there is still potential for Bitcoin to tackle higher targets.
Bitcoin price currently auctions at $17,784. The next bearish targets lie at the previous triangle apex zone near $17,085. Traders should be cautious with early entry. A daily close beneath the apex would spell bad news for the BTC price. So long as Bitcoin can consolidate above $17,085 on the larger time frames, a second attempt to hurdle $18,245 would likely occur.
BTC/USDT 1-Day Chart
To recap, the bullish trend’s invalidation point is a daily closing candlestick beneath $17,085. If the bears succeed, a downtrend move targeting the yearly low at $15,476 would be a justifiable trade idea. BTC would decline by 9% if said price action occurred.
Ethereum price retests the trend
Ethereum price is moving along with Bitcoin’s price action as the decentralized smart-contract token is down 3.5% on the day. Earlier in the week, the ETH price produced a 7% spike, causing some investors to take profit quickly. At the time of writing, ETH is retesting the recently established trend line, which provided support on November 28, December 7 and December 12.
Ethereum price currently auctions at $1,317. Many classical price action traders consider the fourth test of any trend line to be the catalyst of a market reversal. While the trendline theory holds in many markets, being an early seller would be ill-advised. A closing candlestick beneath the $1,230 swing lows would suffice as a bearish entry point to liquidate the November lows at $1,075. The ETH price would decline by 15% under the bearish scenario.
ETH/USDT 1-Day Chart
Traders should remember that this week’s 7% rally enabled the bulls to reconquer October’s previous support zone. The supportive barrier was crucial in ETH’s 30% uptrend rally throughout October into early November. So long as the level above holds on higher time frames, ETH could still climb towards the mid $1,400, as mentioned in previous outlooks this month.
XRP price showing signs of trouble
XRP price is witnessing a slow grinding price action in the bear’s favor. On the week, the digital remittance token is down 1% from the prior, as the market has provided minimal opportunities for grandiose swing trades. Nonetheless, the minute weekly decline still plays a role in the larger narrative. XRP price remains 8% lower than December’s opening candlestick, bringing the yearly decline to 55%.
XRP price currently auctions at $0.379. The southbound price action seems coherent as the bears produced a classical Evening Star pattern on December 14. Utilizing the final candle within the 3-day bearish pattern can project the next target zone in the mid $0.36 zone. Ultimately, the volume indicator shows significant liquidity under the November 21 swing low at $0.345. Ripple will decline by 9% if the bears succeed in their liquidation attempt.
XRP/USDT 1-Day Chart
Based on the factors mentioned above, a bearish trend seems justifiable. Early signs of a reversal would be a breach above the 21-day simple moving average, currently positioned at $0.395. If the bulls can hurdle the indicator, a rally toward October’s broken support zone at $0.44 would be on the cards. XRP price will rise by 16% if the bullish scenario plays out.