Cryptos are back on the positive sentiment of investors as the digital currencies have risen around 70% just in April. Bitcoin, Ethereum, and Ripple are now testing crucial resistances, but experts are confident on the bullish trend.
After several days of increases, cryptos are now experiencing consolidation phases as the units posted big losses on Wednesday on profit-taking. The market is ready to break it or fix it concerning cryptocurrencies.
ETH/USD ready to continue advance after crashing 12% on Wednesday
Ethereum is recovering ground after declining 12% on Wednesday from the $707.80 resistance. The crypto is now trading positive on Thursday as the unit is rising 2% to $631.
ETH/USD is testing the 200-day moving average at $636. However, what is important is the cross that is doing the 20-day moving average above the 50-day MA. Technically, a bullish event.
Experts believe that Wednesday’s selloff was due to profit-taking after recent gains; and today’s moves are a normal technical behavior. In this framework, ETH/USD should retest the 647.10 level before confirming some recovery.
To the upside, ETH/USD will face resistances at 710.00 before attempting to reach the 870.00 area. Then, the $1,000 level is the most significant price.
To the downside, if the unit isn’t able to break above the 710.00 level, next support would be 640.00, then 565.00 and the 500.00 area. Below that, lies the 370 price where March and April’s lows are.
Bitcoin resumes its trip to 10,000
The biggest cryptocurrency in the market is trading positively on Thursday following the Wednesday’s selloff that took the unit from 9,770.00 to price as low as 8,765. BIT/USD is now moving around 8,900.
BIT/USD was rejected by the 200-day moving average on Wednesday as investors took profits from the recent rally. Remember that Bitcoin consolidated losses around $6,500 at the beginning of April and jumped wild the next weeks. BIT/USD rose 20% last week and more than 40% since April 10.
The 20-day moving average is crossing above the 50-day line, signaling further gains.
As investors are awaiting for Bitcoins to take over the 10,000 price, we should take a look at the upside momentum first. After the Wednesday’s profit taking, BIT/USD found support at 8,670, an area that supported the unit last week.
With a break above the 200-day MA, BIT/USD will test the critical $10,000 level before going to the dynamic resistance around $11,200. Then, the battle will take place at the $11,800 area, February and March highs.
To the downside, if the unit lost current levels and it falls below 8,600, BIT/USD will find supports at 7,800 before going in full force to April’s lows around 6,600.
Ripple: All about the 200-day moving average
After rejecting the 0.9515 area, the cryptocurrency Ripple declined more than 13% on Wednesday to test the 200-day moving average level at 0.7682. XRP/USD is now trading 2.5% positive on the day at 0.8135.
Ripple, the third largest cryptocurrency by market value, is fighting to retake the 1.000 level. However it should take care of the $83 level before, then the 0.9515 high. The coin should also break the dynamic resistance coming from February highs that are matching right now.
Interesting that a bullish moving averages cross has been performed this week on the daily chart with 20 and 50 DMA.