Bitcoin price is still stuck and has fluctuated between two major levels since the December 3rd flash crash. This consolidation move forms the basis for long-term volatility, but for now, BTC is likely to retest the top of the range. ETH and XRP will quickly follow the leading cryptocurrency and short-term rally.
Bitcoin price is climbing higher
Bitcoin price bounced off the support floor at $ 45,678 for the fourth time and is currently hovering at $ 46,855, just below the 200-day simple moving average (SMA). The rise above the barrier should push the leading cryptocurrency to hit a resistance at $ 51,993, which coincides with the 50-day SMA. A price crossing this line will accumulate buy-stop liquidity above it.
A 13% increase here is likely to result in profit taking that will eventually reverse. However, in some cases, buyers were able to take it to a support floor, suggesting that Bitcoin could soar higher and retest $ 57,030.
BTC / USD 4-hour chart | Source: TradingView
A break below the support floor at USD 45,678 would signal easing buying pressure. That move caused BTC to drop 9% and retest the swing low at $ 41,672 on December 3, 2021.
This is where Bitcoin price has another chance to reverse and kickstart the upward momentum.
ETH price returns to important barriers
ETH price returned to the support floor of $ 3,640 for the third time on December 31, 2021, triggering a 5% rally to the current value of $ 3,806. Unlike the leading cryptocurrency, ETH conveniently trades above the 200-day SMA.
An increase in buying pressure will likely cause ETH price to retest the $ 4,113 resistance, which coincides with the 50-day SMA. This rally is pushing the price up 8.4% and should limit short-term upside momentum.
If buyers continue to place long orders, ETH can overcome the aforementioned hurdles and recover to an upper limit of $ 4,435 (up 16%).
ETH / USD 6-hour chart | Source: TradingView
In some cases ETH price could move back towards $ 3,640 before approaching immediate resistance. However, a collapse of this level will result in a retest of the swing lows on December 3, 2021 at $ 3,456, where buyers have an additional chance to resume the uptrend.
XRP price could go down
The XRP price hovers above the 3-day demand zone of $ 0.704 to $ 0.778 and will likely test it again before deciding to move higher.
Falling into this area will increase the upward momentum and allow XRP to move north. Resistance at $ 0.892 will be the first target. Additionally, it will likely accumulate liquidity above the $ 0.939 cap.
In some cases, the price can go as high as $ 1 and will face tremendous selling pressure.
XRP / USD 4-hour chart | Source: TradingView
Notwithstanding the recent bull run, if XRP breaks the 3-day demand zone, extends from $ 0.704 to $ 0.778 and closes well below, the bullish thesis will be invalid. If so, the price may fall and return to the $ 0.656 support floor.
You can see the coin prices here.
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