The cryptocurrency market in recovery mode
The price of Bitcoin is showing some strength for the first time in three days as it heads to a crucial supply area. As the pioneer cryptocurrency and the stock market have shown signs of synchronization since the start of this year, the cryptocurrency ecosystem could be feeling the ripples of earnings season, which is expected to occur this week.
• The price of Bitcoin shows a sharp rise on April 26, which hit a stiff resistance barrier of around $ 53,000 USD.
• Ethereum's price has broken above the 50% Fibonacci retracement level at $ 2421USD and is considering retesting the all-time high at $ 2644 USD.
• Ripple's XRP cryptocurrency price appears to be in sync with the market, suggesting a move towards $ 1.32 and $ 1.49 USD.
The earnings season and its influence on the cryptocurrency market
Jim Cramer, host of Mad Money on CNBC, said this week will have plenty of buying opportunities as earnings season is in full swing. He added,
There will be announcements next week that will lit negativity and not all of them will be honestly bad, so I want you to take benefit of this weakness.
Biden's tax hike caused the two markets to collapse in tandem, although the Bitcoin crash runs much deeper. While selecting one data point among others to meet a specific need would be a wise move, Bitcoin has shown a higher degree of correlation with the S&P 500 starting in early 2021.
As the cryptocurrency market is recovering well, a bullish outcome for the mainstream market next week should have a bullish impact on Bitcoin prices.
Bitcoin price enters the supply zone headfirst
The price of Bitcoin shows an increase of 8.5% in the last 8 hours which has broken through the resistance barrier which goes from $ 52,570 to $ 53,826 USD. A decisive close above $ 53.826 USD could prompt marginalized investors to jump on the Bitcoin bandwagon.
In such a case, the price of Bitcoin could rise 12% to retest the pre-crash zone at $ 60,284 USD. Persistent bullish players could push the price of Bitcoin further to $ 62,000 USD, coinciding with the 200% Fibonacci extension level.
4 hour Bitcoin (BTC / USD) chart
On the other hand, failing to cross the supply zone would cause a drop to $ 50,931, followed by another 6.75% drop to $ 47,500.
Ethereum sets the example
The price of Ethereum has been torn apart despite two crashes. ETH cryptocurrency is currently trading around $ 2442 USD after jumping nearly 15% from its lowest point on last week's sale. This upward trend in the smart contract token shows the resilience of buyers and their optimism.
A rebound from the 50% Fibonacci retracement level to $ 2421 USD will signal a persistent bullish outlook. In this case, investors can expect the price of Ethereum to rise 8.7% to retest record highs at $ 2,644 USD.
The recently generated buy signal from the SuperTrend indicator adds tailwind to this scenario.
Ethereum (ETH / USD) 4 hour chart
Regardless of the uptrend surrounding altcoin # 1, if the $ 2421 USD mark is breached, the price of Ethereum could head towards $ 2300 USD. A breakdown of this level may invoke a retest of the support level of $ 2235
Ripple's XRP cryptocurrency seems to want to retest $ 1.50 USD
Ripple's XRP cryptocurrency price has lost nearly 55% since its peak on April 14. At the time of writing, XRP has recovered 30% of its value between $ 0.88 to $ 1.16 USD, where it is currently.
A decisive close above $ 1.17 USD will create a higher high and signal the start of an uptrend. In such a case, the price of Ripple's XRP cryptocurrency could jump 13% to the 50% Fibonacci retracement level at $ 1.32 USD. A further build-up of bid orders could push Ripple's XRP to $ 1.50 USD.
Graphic Ripple (XRP / USD) 4:00
If XRP cryptocurrency traders decide to post profit and failing to produce a 4-hour candlestick close above $ 1.17 USD, a prolonged consolidation could ensue. Here, the XRP price could touch the upper trendline of the demand area at $ 0.97 USD.
By Akash Girimath, FXStreet
Akash has worked in the crypto space as a content writer, analyst for over two years. He is a mechanical engineer attentive in new technologies and financial markets. captivated by the disorder of trading, he invested in cryptocurrencies and sustain a small
The beliefs expressed here are only those of the author and do not necessarily reflect the vision of Forex Quebec. All investment and trading move comes with risk, you should do your own research when making a decision.