Investors are expected to witness a Santa Claus rally on the famous cryptocurrencies such as Bitcoin, Ethereum, and Ripple.
Bitcoin:
Bitcoin bulls will likely test and break $50,020 to the upside as they consolidate above $48,760. With investors across the board buying cryptocurrencies, bitcoin prices are increasing as supportive tailwinds emerge following dovish perceived US central bank decisions. As a result of a perceived dovish central bank decision from Jerome Powell and the US Federal Reserve, Bitcoin’s price is seeing a positive lift in sentiment.
The focus of investors is shifting from risky assets to equities and cryptocurrencies. Therefore, Bitcoin is expected to rally on this sentiment. With the psychological $50,000 level included and the S1 monthly support level, the BTC price will face a critical barrier at $50,020. As markets are rallying with risk-on across the board, expect this level to break sooner rather than later with a target of $53,350 intraday.
There is a risk that the announcements by the Bank of England and the ECB may cast a shadow over the current Christmas rally. Expect a quick correction in BTC towards $44,088 or $43,030 if one of these delivers a message that breaks current sentiment.
Ethereum:
ETH price hit $4,060 around the monthly S1 support level and a pivotal historical chart level on Wednesday following a perfect bounce off $3,687.
It is just about $130 away from the monthly pivot level and a second technical element in the same area. By the end of the week, ETH price action is likely to reach $4,646, with new all-time highs within sight by next week if current sentiment persists.
It is likely that the end of the year will see some volumes wane, which could result in some sharp corrections because sellers will not always be around to match investors’ profit-taking. If this happens, expect the ETH price to tank within minutes, with the $3,687 and $3,391 levels standing in as safeguards.
Ripple:
With favorable tailwinds in cryptocurrencies, ripple (XRP) price is seeing investors return as bulls open this morning close to $0.84, and an initial resistance level is just above $0.88. Once punched through this double belt of resistance, expect hesitant investors to join the rally to move higher towards $0.95 at the 200-day SMA.
If the 200-day SMA is broken, expect a quick surge towards $1.05, but once reached, expect a quick slide towards $0.99. The descending trend line at $0.58 and the blue descending trend line start to fade as soon as they come, pointing to a quick return to the downside.
