BTCUSD (Coinbase)
Source: TradingView
The bullish momentum continued last week and Bitcoin is now trading at new 2024 highs. Buyers had little struggle breaking above $49,000, confirming the strong bids. Although we believe there is room for further upside, traders wanting to get long should proceed cautiously.
When the market goes up a lot, that leaves room for weakness, and those late at the party get trapped at higher prices. You can see that the daily RSIA is trading at 80, an overbought reading. Because of that, market participants shouldn’t be surprised if a corrective move starts to unfold. Our key support levels are $50,000 and $49,000. Bids should resume around them.
On the upside, $53,000 is the closest resistance level and the first target for the current move. Breaking and holding above that on a daily basis could unlock further upside towards $55,200. That’s a much stronger supply area and we suspect there should be more sellers there. Risk appetite remains strong, but forget we are getting close to the April halving and volatility could manifest on both sides of the market.
ETHUSD (Kraken)
Source: TradingView
As things stand right now, Ether reaching $3,000 is a simple formality. The price breached the $2,700 area, treated it as support, and then continued to the upside. That’s a textbook breakout and pullback setup suggesting the bull trend is still in play.
Traders who want to join the rally have a tough time because the RSI is overbought in this case as well. Chasing the market should be done after short-term dips. If the market touches $3k, then a correction could start. Look for a pullback towards the $2,700 area, or the daily 20 EMA. We are in a bull market as long as the price trades above the 200 SMA, which is at $2,000 right now.
We shouldn’t ignore the fact that the price could further extend higher. In case Ether manages to break and hold above $3,000 for several days, the new upside target will be $3,500. The market is speculating that the next crypto ETF will be based on Ether, so that should keep buyers on their toes.
XRPUSD (Kraken)
Source: TradingView
Because it underperformed most of the major coins, XRP hadn’t been on our list for some time. However, at some point in time, traders do shift attention to cheap altcoins and things seem to be improving for this one.
Despite weakness, the market failed to break and hold below 50 cents. That’s why we suspect the 50-45 cents area is a key support. Additionally, we are seeing once again buyers pressing the price close to the daily 200 SMA. If they succeed in generating a breakout, there’s plenty of upside potential then.
Even though it could take some time, we are turning bullish on XRP and expect the price to move towards the 75 cents area in the upcoming weeks. In case the price goes there faster than anticipated, 85 cents is another level to watch for potential pullbacks. This is still the 6th largest coin in the world with a $30.7 billion market capitalization.
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