- Bitcoin makes an ultimate test of the support at $31,000 before resuming the uptrend to $40,000.
- Ethereum could freefall to $1,100 if the 100 SMA support on the 4-hour chart crumbles.
- Ripple puts to test support at $0.25 to determine its next direction, upswing to $0.28 or drop to $0.24.
Cryptoassets across the board are stuck in red, unable to shake off the selling pressure. Moreover, some like Bitcoin have not recovered from last week’s dips. Meanwhile, the week’s pacemakers such as Ethereum and Uniswap seem to have slowed down their uptrends.
The bull run is still with us, but the consolidation appears to be testing investors’ strength to hold despite the slow price action. Earlier this week, we observed that Ethereum investors prefer to keep their bags full instead of selling at a profit.
In other words, investor confidence is growing and likely to remain the same in the near term. Simultaneously, Bitcoin is getting ready to revolutionize liftoff to $100,000 if the halving history repeats as covered on January 27.
Bitcoin puts the $31,000 crucial support to the ultimate test
Bitcoin continued to lose ground since the rejection at $34,500, as highlighted by the 50 Simple Moving Average and the 200 SMA on the 4-hour chart. It seems that the near term support target at $30,000 will be tested again.
Holding above this zone is critical to ensuring that BTC renews the uptrend and perhaps catches momentum for an upswing to $40,000. Trading above the seller congestion at $34,500 will add credence to the liftoff.
BTC/USD 4-hour chart
On the downside, if the support at $31,000 fails to hold, we can expect Bitcoin to extend the bearish leg to $30,000. A near term reversal is envisaged at $28,000, where more buyers are expected to enter. However, if push comes to shove, Bitcoin may explore the rabbit hole to $25,000 and $22,000, respectively.
Ethereum on the brink of tumbling to $1,100
The double-top pattern highlighted on Tuesday was validated, forcing Ethereum on a downward spiral below $1,300. At the time of writing, the pioneer smart contract token is trading at $1,256 while heading fast towards the 100 SMA on the 4-hour chart.
These losses will likely overshoot the critical short-term moving average support, thus triggering a good deal of sell orders. An increase in overhead pressure may see Ether diving under $1,200.
The Relative Strength Index stresses the control bears have over the price. If this technical picture remains the same, ETH will freefall further, maybe retest $1,100 before reversing the trend. Realize that Ethereum tanked toward $1,000 late last week, which means it is still in grave danger.
ETH/USD 4-hour chart
Ripple critical support at $0.25 still vulnerable
XRP’s least resistance path has been downward since buyers lost the ground above $0.3.Trading under the 50 SMA, 100 SMA, and 200 SMA add credibility to the pessimistic outlook. If support at $0.25 caves, Ripple is likely to fall to $0.24 first before extending the bearish leg to $0.2.
As discussed on Tuesday, bulls are exhausted as disappointment kicks in due to their efforts going unrewarded. The Relative Strength Index is exploring lower levels but not quite oversold. Thus, more declines may come into the picture before a substantial recovery occurs.
XRP/USD 4-hour chart
It is worth keeping in mind that support at $0.25 will determine the direction the cross-border token will take. Closing above this crucial level will give bulls the upper hand, where they will have the opportunity to refocus their attention on breaking the stubborn resistance $0.28 and $0.3.