Bitcoin has made some solid gains in the past week: the crypto currency has rallied all the way up from $27,123 to a local high of $30,988 since last Monday. The violation of the psychological $30,000 was pretty important from a technical perspective, as it promised more upside in the near-term.
The BTC/USD is currently set for a test of the key $31,820 resistance. Whatever happens there will determine the direction of the next big move. A potential failure at or below the aforementioned technical level would open the way for a sell-off toward the lower boundary of the trading range, located at the $24,750 – $30,000 support zone. Conversely, Bitcoin breaking through $31,820 would signal a renewal of the long-term uptrend and a rally toward $40,000.
Ether is still stuck in a range between $1,520 and $1,756. Given the prevailing positive mood on the crypto market, ETH/USD is likely to test the upper boundary in the short-term. The outcome there would be decisive of the mid-term trend direction of the second biggest crypto currency.
Possible selling pressure could prove a breakout through $1,756 impossible at this stage. Such an outcome would result in Ether extending its range-bound trading, and thus targeting the $1,520 – $1,540 support zone. Conversely, a potential violation of the range’s upper boundary would open the way for a solid rally toward the $2,000 psychological resistance, at first.
The $0.55 resistance seems to be the last hurdle before Ripple’s more solid and sustained rally. A break through the level would provide potential for a move up toward $0.6655, en route to $0.8551. It should be noted though, that this bullish outlook would materialize only if and after the upper boundary of the range is overcome.
Disclaimer: The above analysis is based on technical indicators and historical price action. It does not constitute financial advice. Always conduct your research before making any investment decisions.
