Ripple

Bitcoin bulls pick the baton as $54,000 beckons

  • Norway’s gas giant Aker invests part of its funds in Bitcoin, believes the growth is inevitable.
  • Bitcoin must hold above $50,000 to ensure that focus remains on $54,000.
  • Ethereum is nurturing a potential technical breakout aiming for levels above $2,000.
  • Ripple struggles to sustain the uptrend amid a bearish impulse from the RSI.

The cryptocurrency market is dotted green and red following a lethargic weekend session. Despite the gradual price action, Bitcoin reclaimed the ground above $50,000 while Ethereum climbed above $1,700. On the other hand, Ripple sustained the price action above $0.45 and is currently aiming for $0.5.

Institutional investment continues to stream in

Norway gas giant Aker has announced the establishment of a Bitcoin investment unit. In a letter to its shareholders, the firm said that roughly $58 million would be invested in Bitcoin and other related projects. The firm said that the decision was arrived at following length discussion regarding value. According to the company chairman, Kjell Inge Røkke:

Bit­coin is like gold, but better.

Peo­ple who know the most about bit­coin be­lieve its fu­ture suc­cess is near­ly in­evitable. Where­as the oth­er camp thinks that its fail­ure is equal­ly cer­tain. Sta­tus quo is not pos­si­ble.

Bitcoin must hold above $50,000 for the upswing to $54,000

The flagship cryptocurrency is trading at $50,200 after yet another rejection at $52,000. The 61.8% Fibonacci level has reinforced the selling pressure at this level. Slightly under the price, the 50 Fibo is in line to offer support.

Bitcoin must hold above $50,000 and the 50% Fibonacci level to ensure stability in the fight for gains toward $54,000. The Moving Average Convergence Divergence validates the uptrend by holding within the positive area. Moreover, if the MACD line (blue) cross above the signal line remains intact, BTC’s uptrend will catch momentum.

BTC/USD 4-hour chart

Ethereum technical breakout targets $2,000

Ethereum extended the recovery above $1,700 over the weekend. However, it lost steam short of $1,800 despite the formation of an inverted head-and-shoulders (H&S) pattern. The resistance at $1,800 needs to come down to allow bulls to focus on the higher price levels.

Note that the inverted H&S pattern is bullish and has a price breakout target. Ethereum is likely to retest the neckline support before continuing the upswing. However, support at $1,700 must stay intact to avoid a bearish impulse from coming into the picture. A 23% breakout is expected above $2,000 if the technical pattern confirms.

The MACD has validated the bullish outlook following the cross into the positive region and the cross above the signal line. Besides the neckline, the 200 Simple Moving Average (SMA) will contribute to the support.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

Ripple’s recovery toward $0.5 is an uphill battle

The cross-border digital asset is trading at $0.47 at the time of writing. On the upside, the 200 SMA limits price action in addition to the seller congestion at $0.5. Besides, the Relative Strength Index shows that bears are gaining traction. The trend strength indicator has been rejected from areas close to the overbought region and moves toward the midline.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

The 100 SMA has provided immediate support. If push comes to shove and declines extend, Ripple will seek refuge at the 50 SMA on the same 4-hour chart.

On the upside, trading above the 200 SMA is likely to jumpstart the uptrend above $0.5. Note that trading above this level would see the bulls’ focus shift to $0.65 and $0.75, respectively.

Source: www.fxstreet.com

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