We take a look at Bitcoin price, Ethereum price, and XRP price for the week of January 1, 2021. Aside from basic fundamentals, we rely heavily on technical analysis to assess overall sentiment. This is achieved by identifying key support and resistance levels that traders and investors will be watching in the short term.
At the time of this report, Bitcoin price is currently hovering around $29,257. As 2020 comes to an end, BTC is entering 2021 with more momentum than ever. This comes shortly after Bitcoin rallied ~ 493% from 2020 bottoms. Visionary Financial has stressed the fact that a struggling dollar would fuel Bitcoin price. This has continued to come to fruition as the US Dollar is trading at the lowest level since April 2018. This has been a leading catalyst behind the Bitcoin surge. Over the last year, Bitcoin has rallied ~ 307%.
Bitcoin Technical Analysis
As mentioned above, Bitcoin continues to achieve new all-time highs. With this being said, it will be important to monitor key support levels. The constant surge has caused Bitcoin to enter “overbought” territories. The RSI indicator at the bottom of the chart displays this metric. Increasing BTC demand can overpower RSI signals and that is why we put more emphasis on key support levels.
We expect a pull-back in the short term for Bitcoin. Price has gone absolutely parabolic and we are overdue for a pull-back. As of right now, BTC will remain bullish unless $28,400 support is rejected. Once that level is rejected, it could confirm a relatively strong pull-back in the short term. It also seems like many traders are putting sell orders right around this support level. If BTC continues to push higher over the next week, we will adjust this support level next Friday.
At the time of this report, the Ethereum price is currently hovering around $730. Despite an explosive 2020, many investors believe that 2021 could be an even bigger year for Ethereum. Over the last year, ETH has rallied ~ 465% which outperforms BTC. With ETH following Bitcoin momentum, ETH still trades at a significant discount from its all-time high. Unlike BTC, this is a metric that will definitely give ETH some fuel in 2021. Additionally, investors are eyeing continued institutional adoption and its infrastructure for the emerging DeFi sector.
Ethereum Technical Analysis
As we can see from the chart below, ETH recently experienced a relatively strong pull-back after hitting $760 levels. This pull-back to $730s now has traders watching support at $640 and resistance at $760. If ETH can power back above $760, it would most likely inject another round of bullish momentum. This type of momentum could put ETH at $800+ in the short-term.
On the contrary, ETH could be pulling back to $640 levels if it can not reverse sentiment in the short-term. If ETH does not accept $760 support, it could put bears in the driver’s seat. Many traders right now seem to be lining up buy orders around $760 to potentially capitalize on another bull run. Over the next week, we will see which direction ETH ultimately decides to take.
At the time of this report, the XRP price is currently hovering around $0.239. Over the last year, XRP has seen a fraction of the growth that BTC and ETH have experienced. This was caused by the recent SEC intervention that caused XRP to fall ~ 65% in two days. The SEC’s lawsuit against Ripple will be one of the biggest events to watch in 2021. With a lot of uncertainty pouring into the market, many exchanges have begun to delist XRP. In a recent report, analysts at PrimeXBT believe that XRP will not be classified as a security. In this event, it will be interesting to see what XRP trades at if exchanges start to re-list the digital asset. With XRP operating in other countries that have already labeled XRP a “non-security,” it is surely helping the short-term price carnage.
XRP Technical Analysis
Despite many top tier exchanges delisting Ripple’s native token, XRP is showing vigorous resilience. The digital asset saw a strong reversal after nearing $0.17 support levels and is now approaching $0.24. It is best believed that many investors are digesting the SEC news and understanding that little has changed for XRP outside of the United States. With XRP being more relevant in countries like Japan, some investors could be re-deploying risk capital.
After a massive sell-off, XRP is eyeing a reversal to $0.31 resistance. If XRP can power through this resistance level, we believe that many initial sellers will get back in with risk capital. Accepting this resistance level could get XRP on the proper track to retest $0.50 levels in the short-term. On the flip side, $0.17 support continues to be on high watch. If XRP falls below $0.17, there will be all sorts of negative indicators surfacing. If this were to happen, you could see strong selling pressure based on historical price action and uncertainties.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.