According to analysis, the dust seems to have settled in the crypto market after the bulls’ rush to defend key support levels and prevent losses from extending further. Bitcoin has recovered above $18,000, although it is still trading under $18,500.
On the other hand, Stellar (XLM), Waves (WAVES) and NEM (XEM) are the best performing tokens on Thursday, posting gains of $17%, 13% and 14%, respectively. The majority of crypto assets have also begun to nurture recoveries.
Bitcoin rebounds after the mid-week dip
Bitcoin held firmly to the descending channel’s lower boundary, thus averting possibly massive drop to $17,000. The 200 Simple Moving Average also played a critical role in ensuring that the sharp drop was curtailed.
Bitcoin commenced a recovery mission shortly after, stepping above $18,000. However, the 50 SMA caps the immediate upside alongside the seller congestion at $18,500. Bitcoin is trading at $18,413 at the time of publication, amid consistent attempts by the bulls to extend the bullish leg toward $19,000 (50 SMA).
The Relative Strength Index confirms a short-term bullish outlook following bouncing off the oversold area. Movement above the midline and heading to the overbought region will indicate that buyers have returned in masses and the bullish grip has intensified.
On the downside, Bitcoin will resume the downtrend if the price momentum slides under $18,000. Moreover, closing the day under the 100 SMA and $18,500 would signal a growing bearish narrative. The primary support at the 200 SMA remains vital. Otherwise, if shattered, Bitcoin might refresh the next anchor at $16,500.
Ethereum reclaims higher critical support
Ethereum dropped to $530 on Wednesday following a strong bearish wave that swept across the market. Our previous crypto analysis showed that the downtrend will go as far as $500, but the smart-contract token abandoned the breakdown slightly above the 200 SMA.
A bounce from the critical support elevated Ethereum but the price stalled within a whisker of $580. ETH/USD is currently holding support level at $560 while exchanging hands at $565.
Ending the day above $560 is good enough for ETH, but stepping above $580 could trigger more buy orders in anticipation of gains beyond $600. The 100 SMA and the 50 SMA might limit the price momentum towards $600, delaying the foreseen breakout.
It is worth saying that if Ethereum slides under $560, the downtrend will resume and this time, the bearish leg could stretch to $500. Additionally, continued trading beneath the 100 SMA may leave the bulls exhausted, thus creating a gap that sellers can easily explore.
Ripple drawing closer to a breakout targeting $0.67
Crypto analysis shows that XRP, similar to Bitcoin, is trading within a descending parallel channel as observed on the 4-hour chart. The recovery from the slump to $0.5 has already made it above the channel’s middle boundary.
All the effort is now channeled to breaking above the upper boundary, which coincides with the 50 SMA. Trading past this critical level will see XRP resume the abandoned breakout to $1. However, bulls will probably take a pit stop at $0.67 before continuing with the uptrend.
The expected breakout will be invalidated if Ripple closes the day below the channel’s middle boundary support. It is worth saying that it is not out of the woods yet despite the recovery over the last 24 hours. Lower anchor zones at $0.52, $0.5 and $0.45 might continue to play a vital role in keeping XRP focused on retesting $1.