Bitcoin price, although slowly rising, is showing a bullish outlook and offering a racing opportunity for altcoins. The evidence is that many altcoins have made gains over the past week. As ETH continues its uptrend, XRP is struggling to hold up.
Bitcoin price moves forward
Bitcoin made a lower low at $44,439 after the Jan. 13 high but was able to make a higher low, keeping the uptrend somewhat intact. As BTC bounces off the 4-hour demand zone, which stretches from $41,843 to $42,707, investors can expect the game-changing cryptocurrency to reach last week’s high of $47,609.
This hurdle is below the 200-day simple moving average (SMA) of $48,590. However, bitcoin’s upside potential appears to be limited to the above levels, at least in the short-term.
BTC/USD 4 hour chart | Source: TradingView
If the price does not bounce off the demand zone between $41,843 and $42,707, it will indicate buyer weakness. This lack of interest could allow the bears to take control and push bitcoin to $41,762. A 4 hour candle closing below would invalidate the bullish thesis.
This development could push bitcoin price lower and retest the $39,870 support.
ETH price shows strength
ETH is also in a similar situation to Bitcoin where the price made a higher low but failed to make a higher high. As long as BTC remains bullish, ETH will follow. As a result, market participants can expect the smart contract token to rally to the 200-day SMA at $3,475.
Clearing this barrier will pave the way for ETH price to return to the daily supply zone, which stretches from $3,675 to $3,846. The upper bound of this hurdle coincides with the 50-day SMA, which suggests that further uptrend is unlikely.
ETH/USD 4 hour chart | Source: TradingView
Regardless of the bullish scenario, ETH price needs to hold above the weekly support at $3,061 to stage any significant uptrend. The loss of this line of defense erases trust and creates distrust among buyers.
However, a 4-hour candle that closes below the demand zone floor at $2,927 will create a lower low, invalidating the bullish thesis.
XRP lacks momentum
XRP price is currently fluctuating above the daily demand zone, ranging from $0.693 to $0.753 since the December 4, 2021 crash. One might assume that this barrier is disappearing. However, due to its correlation with BTC, XRP price is likely to surge 12% and retest the 50-day SMA at $0.844.
However, the flagging demand zone could be crushed by near-term downside momentum, so investors should be cautious with remittance tokens.
In some cases, XRP can break the immediate barrier and rally to the 200-day SMA at $0.954.
XRP/USD 1-day chart | Source: TradingView
On the other hand, if XRP closes a daily candle below $0.693, it will form a lower low, debunking the bullish thesis. This development could trigger a breakdown where XRP price could fall back to the $0.604 support level.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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