Bulls are finally making a comeback into the market and regaining full control of the price across the board. According to the data by CoinMarketCap, a massive $22 billion has come into the market amid Bitcoin’s recovery beyond $13,000.
Selected digital assets followed in the footsteps of the flagship cryptocurrency, adding credence to the bullish cycle. For instance, Ethereum brushed shoulders with $0.26 while Ripple closed in on $0.26, as covered earlier. Litecoin is among the best daily performers, accruing more than 12% in gains.
Bitcoin takes a breather, aiming for $14,000
Bitcoin rallied above $13,000 for the first time in 2020. A broader look at the 4-hour chart shows that the flagship cryptocurrency has been in a long-term bullish cycle since the crash in March. However, up and downs have been part and parcel of the price action, reminiscent of most bullish trends.
Meanwhile, BTC/USD is trading at $12,800 after a retreat from $13,230. The Relative Strength Index (RSI) is in the overbought region, accentuating the influence buyers have on the price. BTC is trading above the selected moving averages, including the 200 SMA, 100 SMA and 50 SMA.
BTC/USD 4-hour chart
InToTheBlock’s IOMAP model reveals the absence of substantial barriers likely to hinder growth above $13,000 in the near term. Nonetheless, for gains eying $14,000, the seller congestion between $13,170 and $13,556 must be overcome.
On the downside, the model shows that it is improbable for a breakdown under $12,000. On the other hand, the most robust support lies between $11,258 and $11,644. Here, roughly 2.24 million addresses previously bought approximately 1.1 million BTC.
Bitcoin’s rally above $13,000 is attributed to the news that PayPal is now allowing users to buy and sell Bitcoin and other digital assets via their accounts. The service will begin with a partial rollout in the United States.
Besides the price action, activity within the Bitcoin network also shot up significantly, as the data by Skew suggests. Bitcoin spot aggregated daily volumes spiked across exchanges with COINBASE leading, LMAX Digital following closely, and Kraken coming third.
Bitcoin spot – aggregated daily volume chart
Ethereum retests $400 again
The smart contract token capitalized on Bitcoin’s price action, also stepping above the crucial $400. Lack of enough volume failed to sustain gains above the critical level, allowing ETH to slide to $390. For now, ETH/USD is trading at $395 as buyers focus on pushing the price higher.
Ethereum’s bullish outlook is reinforced by the Moving Average Convergence Divergence (MACD) action above the midline. A vivid bullish divergence brings to light a growing buyer influence. Trading above $400 might encourage more participants to buy ETH amid the fear of missing out (FOMO).
Ethereum-hour chart
Over the last few days, mentions relating to Ether surged across multiple social media channels. The increase shows Ethereum is becoming attractive to investors who wish to capitalize on the immediate gains.
Similarly, the volume of transactions performed on the network also soared concurrently with the social volume. Whenever these two metrics spike at the same time, a significant price action occurs to the upside.
Ethereum social volume/volume chart
On the other hand, traders need to keep an eye on the same metrics because retracements usually follow spikes. The declining network volume and social volume will negatively impact the price, pointing to a potential correction.
Ripple fights relentlessly for breakout to $0.3
The cross-border cryptocurrency continues to capitalize on recently established support areas. After bouncing off the anchor at $0.24, Ripple went ahead and turned the 200 SMA, 50 SMA, and 100 SMA into support levels. The bullish action gained momentum towards $0.26, but XRP is doddering at $0.256.
Despite the stalling, the RSI emphasizes the bulls’ position in the market as it crosses into the overbought region. If the speculation within XRP’s community, mostly referred to as the XRP army, continues, the volume is likely to build, giving the token a massive push to $0.3.
XRP/USD 4-hour chart
The upward price action from $0.24 succeeded a spike in social volume, as shown by data provided by Santiment. Unfortunately, a retreat is underway from the October 17 peak of 43 to the prevailing 19. If the mentions on social media platforms keep dwindling, there is a likelihood of the bullish outlook being invalidated.
Ripple social volume chart
Daily takeaway
Bitcoin extends price action above $13,000 for the first time in 2020. On-chain data shows increased activity within the network after PayPal announced support for buying and selling of BTC. On the flip side, losses are unlikely below $12,000, but BTC may resume the uptrend.
Ethereum’s bullish action stalled at $400, while $390 functions as the initial critical support. A pike in network transaction volume and social volume suggests the uptrend will keep gaining traction.
On the other hand, Ripple must break the barrier at $0.26 to open the door for gains aiming for $0.3. However, a fall in social media mentions highlights a potential reversal. Fortunately, a myriad of support areas exists to cushion the token from a massive fall.
