- Bitcoin price is less than 5% away from hitting its all-time high of $ 61,788.
- Ethereum’s bulls are showing no signs of slowing down even after rising 25% over the past week.
- The ripple consolidates near the upper limit of an ascending parallel channel.
Christine Lagarde, President of the European Central Bank, confirmed that the Governing Council of the ECB will announce its decision in mid-2021 on whether or not to introduce a digital euro, a digital currency of the Central Bank (CBDC).
In addition, Lagarde mentioned that the ECB will shortly present to the European Parliament the analysis of 8,000 responses from the consultation process related to CBDC.
Thereafter, in mid-2021, the government council will decide on the basis of this consultation and the preparatory work we have carried out whether we should continue to experiment (with Digital Euro).
Lagarde also mentioned that this technical endeavor could take four years.
Bitcoin at the make-or-break point
Bitcoin price has risen nearly 16% since bouncing off the 50 Simple Moving Average (SMA) on the daily chart. Now BTC needs to rise less than 5% to reclaim the all-time high of $ 61,788 and even set up a new one.
Such a move is likely to trigger FOMO among side investors, increasing buying pressure and driving BTC higher.
A positive outlook is reinforced by the buy signal from the SuperTrend indicator, which flashes after the Bitcoin price fell by USD 59,200. If buyers keep piling up, the pioneering cryptocurrency could actually enter a pricing phase.
In such a case, a 14% increase in BTC price to the Fibonacci extension level of 127.2% at $ 70,780 seems likely. Subsequent areas of interest include $ 75,450 and $ 82,200.
BTC / USD 1-day chart
Regardless of the bullish view, an 8% retracement to $ 56,700 seems plausible if investors decide to take profits near the all-time high.
The ongoing bearish momentum could extend the decline to $ 54,713, or the Fibonacci retracement level of 78.6%.
Ethereum investors go on a buying frenzy
Etheruem price showed a massive surge in purchasing power around the 38.2% Fibonacci retracement level at $ 1,578, resulting in a 25% rebound. That rapid surge has brought the immediate supply barrier down to $ 1,881, which coincides with the Fibonacci retracement level of 78.6%.
In addition, the SuperTrend indicator triggered a buy signal after 161 days, which shows the importance of this upward trend for the ETH price.
A continuation of this upward momentum could therefore quickly bring the smart contracts platform to $ 2,500. Interestingly, this level coincides with the Fibonacci expansion level of 161.8%.
To do this, the bulls of Ethereum will have to overcome crucial supply barriers, which stand at $ 2,040 and $ 2,245, respectively.
ETH / USD 1-day chart
Investors need to watch out for the breakout line on the Momentum Reversal Indicator at $ 1,940. Failure to manufacture a candle holder close to this level could signal shopper exhaustion. As investors begin to reallocate their holdings or start posting profits, a downtrend is likely here.
In this case, the Ethereum price could initially drop 5% to retest the USD 1,881 demand barrier. If this level is overwhelmed by the sellers, ETH could plunge 10% to the 61.8% Fibonacci retracement level at $ 1,755.
Ripple rates the pullback as it approaches the local peak
Ripple price faces uptrend exhaustion as it approaches the upper trendline of an ascending parallel channel. This move in XRP price is noteworthy, especially as it exceeded the Fibonacci retracement level of 61.8% at $ 0.55.
Hence, it is of the utmost importance that Ripple buyers manage to keep XRP above this barrier.
However, a break in this level could trigger an 11% plunge towards the 50% Fibonacci retracement level at $ 0.49, a stable lock on demand. If sellers continue to run amok in this price zone, Ripple could expect a steep correction.
A break in the lower trendline at $ 0.49 signals the start of a downtrend. In such a scenario, at $ 0.39, the remittance token could slide a total of 21% in the direction of government trend support for the MRT.
To do this, sellers must overcome a critical demand barrier of $ 0.43.
XRP / USD 1-day chart
On the flip side, if buyers manage to keep the XRP price above the 61.8% Fibonacci retracement level at $ 0.55, things could stay neutral or even turn bullish.
The bearish outlook could be threatened with extinction if Ripple convincingly moves above the upper trendline at $ 0.61. If so, the XRP price could rise 12% to $ 0.70, which is in line with the MRT’s breakout line.
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