Bitcoin, Ethereum, Ripple Indicate Bullish Momentum

Posted on 20/06/2024 | 3661 Views

Bitcoin (BTC) price action is signalling a bullish divergence on a momentum indicator, suggesting an upcoming bullish trend. Similarly, Ethereum (ETH) and Ripple (XRP) are poised to follow Bitcoin’s path, preparing to break resistance levels and rally upwards in unison.

Bitcoin Price Action Indicates Bullish Momentum

Bitcoin's price faced rejection at the weekly resistance level of AU$101,100 (US$67,147) on Monday, dropping by 2.2%. Currently, BTC finds support at its 50% retracement level of AU$96,742 (US$64,274), calculated from the swing low of AU$84,740 (US$56,523) on May 1 to the swing high of AU$108,208 (US$71,995) on May 21.

If BTC rebounds from AU$96,742 (US$64,274), it could rally 4% to retest the previous resistance level of AU$101,100 (US$67,147).

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) support this bounce. The lower low formed on the 4-hour chart on June 18 does not reflect the RSI’s higher high for the same period. This scenario, known as a bullish divergence, often leads to a trend reversal or a short-term rally.

If the bulls are aggressive and the overall crypto market outlook remains positive, BTC could extend an additional rally of 6% to reach the previous resistance level of AU$107,539 (US$71,280).

Ethereum Price Shows Potential for a Rally

Ethereum's price found support around Friday's low of AU$5,051 (US$3,360) and is currently trading at AU$5,340 (US$3,533). The AU$5,051 (US$3,360) low hovers around the 61.8% Fibonacci retracement level at AU$4,919 (US$3,279).

If this support holds, then ETH's price could rally 3% from its current trading price of AU$5,340 (US$3,533) to reach its previous high of AU$5,594 (US$3,717) on June 9.

The Relative Strength Index (RSI) breaks above its mean level of 50 on the 4-hour chart, and the Awesome Oscillator (AO) is on its way to doing the same. If bulls are indeed making a comeback, then both momentum indicators need to maintain their positions above their respective mean levels, adding a tailwind to the recovery rally.

If ETH closes above AU$5,594 (US$3,717), it could extend an additional rally of 6% to reach its previous resistance level of AU$5,979 (US$3,977).

Ripple Price Poised for a Breakout

Ripple's price faced resistance at AU$0.770 (US$0.515), its 50-day Exponential Moving Average (EMA), on Monday and fell by 3%. XRP is currently trading at AU$0.742 (US$0.495).

If Ripple's price breaks above the 50-day EMA at AU$0.770 (US$0.515), it could rise 7% from AU$0.747 (US$0.499) to AU$0.798 (US$0.532), its previous high from June 5.

The Relative Strength Index (RSI) on the daily chart is below the mean level of 50, while the Awesome Oscillator (AO) is below its zero line. If bulls are indeed making a comeback, both momentum indicators need to maintain their positions above their respective mean levels of 50 and zero, boosting the recovery rally.

If the overall crypto market outlook remains positive, XRP could extend an additional 9% to AU$0.872 (US$0.581), a 50% price retracement level of AU$0.628 (US$0.419) and AU$1.116 (US$0.744) from March 11 to April 13.

 

So, are you prepared for when the market turns?

 

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