After a slow but steady start of bullish momentum, Bitcoin finally managed to break through the all-important price barrier at 12K. The ground is clear to reach the zone of highs of 2020 previous, and it will most likely be exceeded.
The strange thing about the current situation is that despite the strong dominance of BTC over the crypto market in general, the bullish movement that we are witnessing has not influenced other participants too much.
This is likely due to one or a few large capital orders, totally aimed at holding the largest of the cryptocurrencies, but this is the subject of another article.
For now let’s focus on analyzing what we have at our disposal, and it is the price behavior of the 3 largest in the ecosystem, in order to forecast their near future.
At the time of this writing, Bitcoin presents gains of 2.58% so far this day, thus trading at $ 12,229. Ethereum for its part is trading at $ 379.17, with a small gain of 0.52%, while Ripple has a price of $ 0.2480 and a 0.74% rise in the last 24 hours.
Technical analysis of the price of Bitcoin after exceeding 12K
In the rise that we are witnessing, probably one of the points that has been most relevant for BTC followers, is the negative correlation of this asset with traditional markets.
The situation is quite different than usual, the dollar does not seem to find support, while the main stocks do not either. However, Bitcoin is jumping higher, and soon gold may as well.
For many analysts, there is a good chance that much of the markets will sink in tandem, as the dollar strengthens amid a new wave of risk aversion as happened in March.
But it seems that this is not the case at the moment, and the rise in the price of Bitcoin above 12K is showing that large capitals are taking advantage of this asset as a form of protection.
The truth is that the current bullish behavior of BTC is more than just entering orders. It is signifying the development of momentum that will most likely be setting new yearly highs.
With the recent awakening of the Bitcoin price, the 8 EMA and 18-week SMA moving averages are proving their relevance, after they functioned as support and gave way to a new bullish momentum of the medium-term trend.
Now, the next target is $ 12,468, this being the previous annual maximum. Despite this being an obstacle, I don’t think it’s too important.
The momentum we see developing will seek to mark a new higher high before pulling back. Probably the relevant target will be $ 13,147.
Short term trend
In the daily time frame, we can see more clearly the intention of the bulls in recent days, managing to impose a solid uptrend in the short term, as a result of continuous stock breaks.
The 8-day EMA and 18-day SMA moving averages are crossed in this direction, and currently away from the current price. A small correction is likely to start soon, and these averages will function as dynamic supports.
Ethereum price technical analysis
As I mentioned, still other cryptocurrencies have not awakened as strongly as Bitcoin did, but it is very likely that they are about to do so.
Ethereum for example is still locked in a sideways range with immediate resistance at $ 385.30.
If the support at $ 365.50 is not crossed, the price will manage to overcome the named resistance in the next few hours, leaving the ground free up to $ 475.40. At the moment the odds are in favor of this scenario.
Ripple price technical analysis
With Ripple, history repeats itself, even its price is locked in a lateral range with resistance at $ 0.2538 and support at $ 0.2310; But even though there is no major jump to the upside yet, the odds are in favor of the bullish side.
At the beginning of October XRP showed the impossibility of continuing to set new lows, which left an inverted Shoulder Head Shoulder formed, indicating a possible change in trend.
The neckline of this formation is in the area around $ 0.2538, and it must be broken effectively, to confirm that the next medium-term bullish momentum is beginning, one that with high probability will be exceeding the previous annual high.
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