Investors in the cryptocurrency market have begun counting days to the end of the year and started sharing their forecast about Bitcoin and altcoins price. The usual end of the year rally seems to elevate crypto assets to higher levels, with Bitcoin possibly surging to a new all-time high above $20,000. The launch of Ethereum 2.0 is also a bullish indicator that the smart contract token may rally significantly above $500.
On the other hand, investors estimate that Ripple would follow Ethereum and Bitcoin’s footsteps and rally towards $1. Selected tokens in the DeFi sector have commenced their end of year rallies. Some of them include SushiSwap, Uniswap and Aave.
Bitcoin price analysis and forecast
BTC slipped beneath $15,000 again over the weekend, but immense buyer congestion marginally above the 50 Simple Moving Average boosted the bullish trend. BTC resumed the uptrend shortly after and topped $16,000 on Monday.
At the time of publication, the king of cryptocurrencies is trading at $16,268 amid a building bullish trend. The Relative Strength Index adds credibility to the optimistic outlook as it recovers above the midline.
Bitcoin bulls want to send the price above $17K, but first, the resistance at $16,500 (new yearly high) must be cleared. More hurdles might come into the picture above $17,000, but the fear of missing out (FOMO) is likely to catapult BTC to new all-time highs.
Meanwhile, the bullish narrative will be invalidated if it slumps under $16,000 again. The bearish price action will possibly trigger more sell orders. If BTC breaks below the crucial 50 SMA support, we can expect losses to extend to the 100 SMA, currently at $15,000.
Ethereum price analysis and forecast
The altcoins leader recovered from the support established at $440, following a rejection from $480. Following the rebound, it is doddering at $445, while bulls deal with the 50 SMA resistance level.
Closing above this zone could add credibility to the recovery mission eyeing $480. Consolidation could come into play in the near term, as highlighted by the RSI’s levelling motion at the midline.
The bearish outlook will hold in the event the smart contract token closes the day under the 50 SMA. Exhaustion might engulf the bullish camp leaving its bullish scenario vulnerable in comparison to bears. Declines could revisit the recent support at $440. On the other hand, if sell orders increase, Ethereum will be forced to explore the next support targets at the 100 SMA and 200 SMA.
Ripple price analysis and forecast
Ripple has rallied extensively from the lows in November; nonetheless, the change remains small in comparison to Bitcoin’s. The resistance between $0.26 and $0.27 was finally overcome, allowing XRP to exchange hands at a monthly high of $0.278. Meanwhile, it retreated to confirm support at $0.265 before recovering slightly to $0.273 (overall market value).
XRP/USD 4-hour chart brings to light the formation of an ascending wedge pattern.
If XRP fails to break above the hurdle at $0.28 and push towards $0.3, bearish pressure may begin to increase as sell orders balloon. On the downside, price action under the wedge pattern will seek support at the 50 SMA, currently at $0.26 and the 200 SMA, at $0.25.
It is worth noting that the bearish picture will be sabotaged if XRP rises above $0.28, as well as the wedge pattern resistance. Crossing above $0.3 might trigger massive buy orders and investors are likely to join the market to capitalize on the rally.
Similarly, the RSI indicates that buyers are relatively in control at the moment. The golden cross formed by the 50 SMA crossing above the 200 SMA adds credence to the bullish picture.