Crypto Frontline

BTCUSD (Coinbase)

Bitcoin’s technical picture continued to improve during the last week, and we say that because the price has managed to clear out both $74,500 and the triangle consolidation. As long as the price manages to hold the gains, we think there is more upside ahead.

The price has pulled back as there is still some uncertainty around the situation in the Middle East. However, financial markets are already positioning in a way that suggests the problem would be solved sooner rather than later. 

Traders can stay bullish as long as the daily 20 EMA acts as a support zone. Would turn to a bearish stance only if the price breaks and holds below $66k. That doesn’t seem likely at this point, but you should be prepared for any scenario. 

On the upside, if the market continues to make new higher highs, $80,600 is our first resistance line. Above that, the daily 200 SMA will be back in focus. The broad picture looks like a bullish parabolic structure, which implies further upside momentum in the weeks to come. 

ETHUSD (Kraken)

We’re seeing similar technical conditions in Ether, which managed to break above the March highs last week. That’s an important factor to note since it suggests buyers are willing to enter at higher prices. Additionally, ETH has been trading above the daily 20 EMA for over 2 weeks. 

This implies consistent bullish momentum and as long as it holds, we could see further gains. Our next upside targets are located at $2,500 and $2,620. An extension higher would probably require more good news from the Middle East. 

In case we get renewed uncertainty, a corrective move lower would become the likely scenario. Keep in mind that we won’t shift to a bearish stance until the price breaks and holds below $2,000. There is a confluence of support areas there and sellers must clear it out. 

Our advice is to remain patient as bottoming formations take longer to form and in the process, we have sharp short-term selloffs that wipe out traders who bought near the highs. 

XRPUSD (Kraken)

Another altcoin that could benefit from renewed optimism is XRP. The price has been trading above a long-term trend line for 4 consecutive days and that suggests selling pressure is weak now. Additionally, the daily 20 EMA is no longer treated as resistance. 

We are tactically bullish as long as the price is trading above $1.35. In this upside scenario, we expect XRP to edge higher, towards the $1.6 – $1.65 resistance area. More gains could follow if the bottoming is confirmed, but we believe professionals are already accumulating coins expecting more upside. 

This bullish scenario gets negated on a break below $1.25. In that case, we could see XRP dropping closer to $1 again. However, this does seem like a low-probability scenario at this point. The coin sold off substantially from all-time highs, and now it’s appealing again.