The Bitcoin (BTC) price is at risk of breaking down from an ascending parallel channel, while the Ethereum (ETH) price could do the same relative to its ascending support line. The XRP price looks more bullish due to the reclaim of the $0.385 horizontal area.
Bitcoin Fails to Reach Pattern’s Resistance Line
The Bitcoin price has traded inside an ascending parallel channel since Nov. 21. The upward movement has been contained inside an ascending parallel channel, which is considered a bearish pattern.
The channel’s resistance line rejected the BTC price on Dec. 1 (red icon). While it made a slightly higher high on Dec. 5, it failed to reach the resistance line again. The higher high was combined with bearish divergence in the RSI (green line). This is considered a sign of weakness and a bearish development.
The channel’s midline (red circle) is now expected to provide resistance.
The closest support area is at $16,680, the 0.382 Fib retracement support level and the channel’s support line.
If a breakdown occurs, the next closest support area would be at $16,220, the 0.618 Fib retracement support level and a horizontal support area.
Conversely, a breakout from the ascending parallel channel would invalidate the Bitcoin price forecast.
Ethereum Price Barely Holds Above Support
Ethereum is the native token of the Ethereum blockchain, created by Vitalik Buterin. It is the second largest cryptocurrency based on its market capitalization, trailing only Bitcoin.
The Ethereum price has increased alongside an ascending support line since Nov. 22. While doing so, the ETH price was rejected thrice by the $1,305 resistance area.
This is a crucial level since it is the 0.382 Fib retracement resistance level. The rejection created a triple top pattern and catalyzed a fall towards the support line.
A breakout above the $1,305 resistance area would likely catalyze an upward movement towards $1,450, the 0.618 Fib retracement resistance level.
On the other hand, a breakdown from the support line would cause a fall to the $1,165 support, created by the 0.618 Fib retracement support level and a horizontal support area.
XRP Reclaims Crucial Horizontal Level
XRP is the native token of Ripple Labs, created by Jed McCaleb. The digital asset is used for real-time financial transactions. Despite its low price, it has a $19 billion market cap through its circulating supply of 50.26 billion XRP.
The XRP price has increased alongside an ascending support line since June 14. The line has been validated numerous times, most recently on Nov. 9 and 14 (green icons). Both these touches created bullish candlesticks.
Afterward, the XRP price reclaimed the $0.385 horizontal area. Over the past 24 hours, it has been validating it as support.
If the XRP price is successful in doing so, an upward movement towards the descending resistance line at $0.43 is expected.
If not, the XRP price could fall to the ascending support line at $0.35.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer: BeInCrypto strives to provide accurate and up-to-date news and information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
Disclaimer
BeinCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
