As the new week begins with a boom, Bitcoin is back above $50,000. BTC officially surpassed the $50,000 barrier overnight on Aug. 22 after a solid weekend.
Hitherto, the price dropped to the $49000 level, which was the 76.4% retracement of the recent depreciating range from $49821.92 to $48650.03, BTCUSD faced a stronger bias, as the price moved down to the $49499 levels, which represented a test of the 76.4% retracement of the previous downtrend.
The tight range indicates less market liquidity and a possible halt before a potential surge upward towards the psychologically significant $50000 levels.
Stops were chosen above the $46849.50 level, representing a 50% retracement of the depreciation range from $64899 to $28800.
Additional Stops were chosen above $48287.98, the 61.8% retracement of the depreciating range from $59592.20 to $30000. The levels $51109, $52608, and $53259 are further upward retracement levels in these ranges.
In the course of the current retreat, traders had anticipations that the price would not go below the $45945.44 - $44669.26 levels, which corresponds to the 50%, 61.8%, 76.4%, and 78.6% retracements of the ascending range $43714.36 to $48176.52.
The 50-bar moving average on the 4 hour time frame at $46829.45 and the 50-bar moving average at $48958.37 are the closest price levels.
With stops anticipated below, we expect some technical support at $28747.28/ $27706.27/ $27175.66 while we are likely to see some resistance around $49821.92/ $51569.56/ $64899.
In a base case scenario, BTC is expected to hit $96k by December 2021.
At current pricing ($48k as of writing these lines), BTC will have to double in value, which is realistic given BTC's severe supply depletion.
BTC must first break through the main resistance zone between $51.1 and $58k to achieve this $96k.
It's critical to keep an eye on on-chain data during this retest of significant resistance, particularly to ensure that long-term holders and organizations with substantial quantities of illiquid supply aren't selling.
If no on-chain sell signs are flashing, a retest of the current all-time high ($65k) set in April 2021 seems probable.
The graph below estimates several possible pathways for BTC to achieve our $96k base case goal.
Above $58k, technical and on-chain resistance is not as strong as in the $56-58k range. Breaking over the previous all-time high will not take much effort if fresh big buyers continue to join the market and shorts continue to be liquidated.
When the price of bitcoin passes the previous all-time high ($64,800), we'll see the uptrend speed up since now it will enter the price configuration phase.
The latter refers to levels at which an item has never traded before; therefore, no prior resistance levels exist.
Bitcoin has typically achieved its bull market peak late in Q4 of the year after the halving, according to the 4-year cycle and BTC halving statistics.
If BTC continues to follow this trend, a blow-off top may occur sometime in December 2021.
Because of the longer-than-expected consolidation between $30k and $40k, Bitcoin has had less time to develop a higher-level structure. It's important to remember that parabolic periods in BTC result in substantial profits in a short period.
The RSI is easing out of an overbought position, and the bulls are still in command deep in their zone. MACD lines continue to remain bullish, as they have been for many weeks.
As of when this analysis was done, Ethereum was down 0.7% to $3,153.75. Ethereum started the day on a vacillating note, had a high of $3,275.00 before dropping to a low of $3,128.82.
Early on, Ethereum left the most important assist, and resistance ranges unexplored.
Early in the morning sessions, ETHUSD exhibited some weakness, falling to $3220.06 after trading as high as $3275 in the European session, with the intraday high marking a challenge of the 61.8% retracement of the recent decline from 3311 to $3206.96.
Traders note that after a recent downturn, ETHUSD recently rebounded upward from the $3189.10 level, testing the 78.6% retracement before the downtrend from $3293.17 to $2812.01.
While the current rally was on, stops were placed above the $3235.10 and $3266.37 levels, with upward price targets that suggested that more buying took place at the $1718.41 level in July.
From $3448.52 - $3857.25 are further upward retracement levels and possible technical resistance regions.
The $2893.53 - 2721.46 regions are negative retracement levels and areas of possible technical support after the recent rise to multi-month highs.
The 50-bar moving average on the 4 hour time frame is bullish, suggesting that the pair is above the 100-bar moving average and above the 200-bar moving average, according to traders.
Furthermore, the 50-bar moving average on the hourly time frame is bullish, suggesting that the 100-bar moving average and the 200-bar moving average are on the high side.
At $3183.64 and $3261.63, respectively, the 50-bar MA (4-hourly) and the 50-bar MA (Hourly) are the closest to the price action.
Stops are anticipated below $1700/ $1633.51/ $1456.03. Technical Support is expected around $1700/ $1633.51/ $1456.03, while further halts are anticipated above $3341.47/ $3420.10/ $3788.66, where technical resistance is expected.
The RSI value for the coin is 58, suggesting a bullish mood.
However, investors may see a negative divergence of the RSI with the price movement, indicating that the bull momentum is weakening.
XRP was down 2.30% at $1.18931 at the time of writing. XRP dipped from an early morning high of $1.25600 to a low of $1.17543, indicating a negative start to the day.
Early on, XRP left the most important assist and resistance regions unexplored.
Ripple's XRP may need to retrace its steps through the pivot at $1.2515 to test the first major resistance at $1.3027.
Price is attempting to recover in the 4 hours trading frame, but volume is lower.
On the other hand, the currency rebounds from lower levels, and technical indicators show a mixed trend.
The XRP coin is steadily gaining traction from its lows, and a breakthrough over $1.38 will soon add to the positive momentum.
The volume on the 4-hour time frame is lower and below the average line, indicating that the trading session ahead will be better.
The price of XRP is now trading at $1.25, with a small intraday move of -1.22%, and the volume to market cap ratio is 0.07922.
The RSI is trading flat beneath the neutral zone after testing the upper region and currently has a CMP of 64, while the MACD on the daily chart shows a mixed trend with no apparent momentum.
The signal lines of the seller (orange) and the buyer (blue) cross.
As at the time of this analysis, Litecoin was down 0.22% at $179.60.
LTC had a mixed start to the day, almost like other pairs, rising to an early morning high of $189.81 before dropping to $178.71.
Early on, Litecoin left the most important assist, and resistance ranges untested.
To bring the major main resistance level at $187 into action, Litecoin has to stay away from the $181 pivot.
However, if Litecoin must break the $185 barrier, it will need help from the rest of the market.
If there isn't a sustained crypto rise, the major key resistance level may stifle further gains.
Before any retreat, Litecoin may test resistance at $195 in the event of a sustained breakthrough. $191 is the second major resistance level.
If the $181 pivot is breached, the 23.6 percent FIB of $178 and the primary main assist degree of $177 will be activated.
Litecoin, on the other hand, should avoid falling below $170 unless there is a protracted sell-off.
At $171, the second major aid level, the drawback should be limited.
The RSI indicates that the bulls have the upper hand with a value of 62.21. This chart, which has come from a high of 65, indicates that the bulls are still purchasing at a slower rate than in the previous week.
The MACD histogram is also optimistic, having been bullish since late July.
The price of BCH is presently consolidated, with the potential of a significant rise.
Bitcoin cash is now selling around $670, down more than 3% in the last 24 hours. BCH follows BTC's lead and may witness a big breakthrough shortly.
While moving up around $750, BCH's bullish momentum may see antagonism.
The asset's bounceback area when falling may be observed around $600. In the future, the BCH/BTC pair may break out above the prior barrier. When BCH breaks out above the consolidated zone, it's time to buy.
BCH is presently trading above the 100 and 50 Day Moving Averages, with a bullish crossing
expected shortly. The 100 moving average line is around $598, serving as a brief price support zone.
A significant upward momentum may be seen if the Moving average has a positive crossing.
Depending on the price movement and risk tolerance, one may invest in BCH.
Based on the BCH price technical chart, a significant uptrend is expected for the days ahead.
The price is presently exhibiting a consolidated momentum as seen on the daily chart.
A strong bullish trend to $1000 may be observed if BCH's price rises 15 to 20% over its present level.
In the future, the BCH/BTC pair may see a lot more momentum.
BCH's volume indicator is around 7.7K, suggesting minimal selling pressure.
If the price of Bitcoincash rises over $700, there will be a massive purchasing frenzy.
The RSI is presently at 63 points, and the MACD is safely over the positive barrier, suggesting that bulls have a firm grip on price movements.
Bitcoin / Ethereum = 0.83, Bitcoin / Ripple = 0.85, Bitcoin / Litecoin = 0.80, Bitcoin / Bitcoin Cash = 0.84
With BTC crossing the $50K mark a few hours ago, this portends great things for XRP (the most correlated with BTC) and consequently for the other altcoins.
