Crypto bull run hits pause as Bitcoin touches $40,000

January 8, 2021 John Ripple 0

  • Bitcoin is stable above $38,000 to allow bulls to regroup for another run-up to price levels past $40,000.
  • Ethereum is having an uphill battle to sustain the uptrend above $1,200.
  • Ripple is trading between the 200 SMA resistance and the 100 SMA on the 4-hour chart.

The cryptocurrency market has slowed down the drastic upward movements apart from Bitcoin’s surge to a new all-time at $40,425. However, some selected altcoins continue to tower the crypto horizon with their massive gains. For instance, Enjin Coin is up 60% over the last 24 hours; Nano spiked 30% while Civic is up a whopping 56%.

Bitcoin seeks stability after rejection from new all-time high

The bellwether cryptocurrency exchanged hands above $40,000 for the first time in its history. However, due to the extremely volatile market, BTC retreated considerably, revisiting levels slightly above $36,600.

As expected, Bitcoin did not stay down for long. Recovery occurred, stepping above $38,000. At the time of writing, BTC/USD is trading at $38,677 amid a struggle to complete the leg above $40,000. For now, stability seems critical to ensure that declines are avoided while the focus is kept on levels beyond $40,000.

BTC/USD 4-hour chart

Bitcoin must close the day above two key levels; the ascending channel’s lower boundary and $38,000. However, if it fails, declines are likely to come into the picture, pulling the price back to the recent support at $36,600. Other key support levels to keep in mind include $36,000, $34,000, and $30,000.

Ethereum fights to keep the uptrend intact

The pioneer altcoin has been on an upward roll since mid-December to the extent of trading the latest new yearly high at $1,294. However, a minor breakdown occurred from the rising wedge pattern as predicted on Thursday.

Support at $1,200 and $1,100 was shattered, stopping the predicted slide to $900. Meanwhile, recovery is underway, with bulls persistent on reclaiming the position above $1,200. Stability above this crucial level is expected to increase investors’ confidence in the recovery and ETH’s ability to rise to the early 2018 highs above $1,400.

Ethereum price 4-hour chart forecastETH/USD 4-hour chart

Recovery and stability will be a pipe dream if Ether fails to close the day above $1,200. In case bears slice through the next support target at $1,100, we can anticipate another leg down to $1,000 or even $900.

Ripple technicals bring two key levels to test

Ripple almost hit $0.4 after the breakout discussed on Thursday. On the upside, the 200 Simple Moving Average limited movement. On the other hand, a reversal from the hurdle found refuge above the 100 SMA on the 4-hour chart.

In the meantime, Ethereum is trading at $0.32 while buyers fight to take control over the price. Immediately below the current price level, $0.3 is the pivotal level that must be kept intact to avoid attracting high overhead pressure.

XRP buyers must also keep their eyes on $0.4 because breaking above the critical level would pave the way for gains above $0.6.

XRP price 4-hour chartXRP/USD 4-hour chart

On the downside, massive sell orders are likely to be triggered if the cross-border token closes the day under $0.3. Such a price action would increase the gravitational pull on XRP, putting the 100 SMA and the 200 SMA to the ultimate test. Further down, Ripple will seek refuge at $0.2 and the December low at $0.17.