Crypto Frontline

BTCUSD (Coinbase)

The Bitcoin rally continued last week as expected and the price easily surpassed our $90k upside target. At the time of writing, we see the price consolidating above the 4h chart 20 EMA, which indicates the bullish momentum has not ended, just paused temporarily.

Although major stock markets retraced from the highs during the last couple of days, that doesn’t seem to weigh on the BTC sentiment for now. Traders should watch for resistance around $95k and $100k.

Sellers are likely waiting there, which might generate some consolidation. Even though we think the bullish trend is still in play, that doesn’t rule out pullbacks. Be aware that 5-10% retracements are common for BTC, given the market is not very liquid.

As a result, it might be the case to start seeing some weakness and the first support to watch is $85k. Further selling below that will expose the former ATH around $74k. A retest of that area would likely be treated as an opportunity to get long by many buyers waiting to enter at an attractive level.

ETHUSD (Kraken)

Ether already retraced 10% from the highs, suggesting traders are taking some profits off the table by selling some altcoins. Bitcoin is the only beneficiary and that comes on top of supportive ETF flows.

The next key level to watch in ETH is $3,000, now an important support. Since the market managed to break impulsively above it, we expect buyers to step in, also because it’s a psychological area that has to be defended.

You should expect a choppier price action this week as the market tries to find a new point of balance. To the upside, a pocket of resistance can be spotted around $3,400 – $3,500. That should be enough to cap further gains, as post-election enthusiasm is cooling down.

As long as the price trades above the 200 SMA we remain bullish. Breaking below $2,700 impulsively will be our risk-off signal. Broad financial markets are starting to position for higher inflation and higher interest rates and that could impact crypto as well over the upcoming months.

XRPUSD (Kraken)

The result of the US election seems to benefit XRP greatly, as the price is up more than 100% since Nov 4^th. Last time we analyzed this coin we highlighted the 50-45 cents as a key buy zone and as you can see, that turned out to be a very good call.

XRP managed to reach $1.25 before retracing lower and from now on, things get a bit trickier. We see heavy resistance around $1.30 – $1.40. Buyers have to break above that to stand a chance for $2.

We think that’s unlikely as XRP is poised for a retracement from overbought conditions. Support is expected at $1 – $0.95,  where buyers should step in to take advantage of the pullback. On one hand, it’s hard to fight such an impulsive push higher, but at the same time, one has to consider the increasing potential for a corrective move.