Bitcoin Over $8000 - Where BTC, ETH & XRP are Headed? 

Bitcoin Over $8000 - Where BTC, ETH & XRP are Headed? 


Hello traders, what a glorious time we have in the markets!

So, Bitcoin finally managed to break above the $8,000 which has led the entire altcoin market to push beyond critical resistance levels and step inside the bullish zone.

It all started last week when Bitcoin managed to rebound from support at $6,800 and rise above the $7,000 resistance level again. It found some turbulence at the $7,400 level but went on to break this quickly to reach $7,700. From here, Bitcoin moved sideways for around 3-days but eventually went on to break this resistance today (April 29th) as the cryptocurrency breached the $8,000 level and surged as high as $8,300.

This pushed everything else up with it.

The BTC bullish push allowed Ethereum to surge above the $200 level and XRP to break the strong resistance it was previously facing at $0.20. Both of these altcoins are now in short term bullish trends.

This bullish press is not surprising at all when we consider the fact that the Bitcoin block halving is just 12-days away now. In the upcoming halving, we will see the block reward for miners being slashed by 50% as it falls from 12.5 BTC per block to just 6.25 BTC per block.

dfec9f9cc6995462d1504faa08625c5afc8a62435f2be97b3c8c0ba8f60ac6dd.png

As you can imagine, this causes the incoming supply to decrease, making Bitcoin more scarce as less BTC will be entering the exchanges from mining operations. In fact, lots of small scale mining operations are likely to close down as their setup will start to become less profitable and unprofitable in some cases.

This bullish push higher has now caused the entire market cap value to rise into the $237 billion level. You can see this on the chart below which shows the total market cap for the industry from the start of 2020. 

53fdc58171d973a1288f17f939b00bfcd8a36aaf62d29e2ce47548b4584f3fb1.png

We can see that the market was trending very well during the first two months of the year as it managed to rise above the $300 billion level. However, it started to fall from here and in March 2020 we can see that the market cap plummeted as the Coronavirus pandemic caused widespread uncertainty within the entire economy.

During the collapse, the total market cap value for the industry dipped as low as the $130 billion level but it quickly started to recover. 
Before we dive into the charts, I would like to point out how well Bitcoin is performing against the US Stock market. The chart below shows both Bitcoin (orange) and the S&P 500 (green) since the start of 2020.

09398148c4a2b535ab56936c9f2153ea272665eef98f20a95b33302bc163f996.png

We can see that, since the start of the year, the US stock market had increased by a total of around 4% by February whilst Bitcoin managed to surge by a total of 44% in the same period. 

Both of them suffered greatly during the Covid-19 market panic as they both fell to a low of around -30% since the start of 2020. However, we can clearly see Bitcoin recovering at a greater rate than the S&P 500. 

Over the past week, Bitcoin managed to turn positive on the year as it continued to increase to reach the current level at +15%. This represents a 15% price hike from where we were trading at the start of 2020. However, although the S&P 500 is recovering, it is still -9% lower than what it was trading at from the start of 2020 as it continues to be greatly outperformed by Bitcoin.

Bitcoin Price Analysis

0db410703f21d37768aad533083cff604ee42035ad12606cbfede0f57f0fe2b4.png

BTC/USD - From 2020 Onward - DAILY CHART

What Has Been Going On?

Taking a look at the daily chart above, we can clearly see that Bitcoin has continuously been making higher lows ever since it dropped to the $4,000 level during the market collapse in March caused by the Coronavirus pandemic.

It has been trading above a rising support trend line for this entire period of time as it slowly started to grind higher. In early April 2020, we can see that Bitcoin was facing resistance at $7,400 and struggled to break above this level which caused it to drop back beneath $7,000 and reach the $6,650 support at the rising trend line by mid-April.

After rebounding from here, it went on to reclaim $7,000 and eventually broke above the resistance at $7,400 in last week’s trading session, confirming that the bullish trend was still in motion. Bitcoin then found some short term resistance at $7,700 but surged by 7.5% from here today (April 29th) as the cryptocurrency broke above $8,000 and traveled as high as $8,350 where it ran into the 1.272 Fibonacci Extension resistance. 

Bitcoin is now trading in a turbulent zone, highlighted by the red box, in which we can expect some choppy price action.

Are We Bullish Or Bearish?

We are most certainly bullish right now and would need to drop beneath $7,000 to turn bearish again.

Where Can We Go From Here?

If the sellers to step in and push lower, we can expect the first level of support to be located at $8,000. Beneath this, support can be located at $7,700, the rising support trend line, $7,300 (.236 Fib Retracement), and $7,000.

On the other hand, once the buyers break the current resistance at $8,350, resistance can be expected at $8,500 and $8,785 (1.414 Fib Extension level). Above this, resistance is located at $9,000, and $9,116 (bearish .786 Fib Retracement level). This bearish Fibonacci Retracement level is measured from the February high to the March low.

If the buyers continue to drive furtehr higher above $9,116, resistance is then expected at $9,280, $9,412 (1.618 Fib Extension), $9,778 (bearish .886 Fib Retracement), and $10,000.

Ethereum Price Analysis

2b229d4d77e1968314a2e7345a9eb5161735ef0962361f7cb7deb47b258059c1.png

ETH/USD - From 2020 Onward - DAILY CHART

What Has Been Going On?

Taking a look at the daily chart above for ETH, we can see that the cryptocurrency has been trading within an ascending channel for the past 6-weeks of trading as it continuously made higher highs and higher lows.

Last week, the coin had dropped into the support at $170, provided by the 100-days EMA, and it managed to rebound from this location. 

After rebounding, the cryptocurrency went on to break the $190 resistance as it reached the 1.414 Fibonacci Extension level at $198. It struggled at this resistance for a couple of days but managed to penetrate above this today (April 29th) to push beyond $200 and reach the resistance at $208.50 (1.618 Fibonacci Extension level) and the upper boundary of the ascending price channel.

Looking more closely, we can see that ETH actually scratched the $211 resistance provided by a bearish .618 Fibonacci Retracement level, measured from the February high to the March low.

Are We Bullish Or Bearish?

Ethereum is most certainly bullish also and would need to drop beneath $180 to turn neutral. It would have to break beneath the lower boundary of the channel to turn bearish.

Where Can We Go From Here?

We can expect some sideways action over the next few days as the coin faces resistance at the upper boundary of the range. It might just move sideways alone the $210 resistance, however, it might fall slightly. In this case, we can expect support at $200, $198, $190, and $181 (.236 Fibonacci Retracement level).

This is followed by additional support at the lower boundary of the price channel.

Alternatively, if the bulls can break above the upper boundary of the channel and break past the $211 resistance, we can expect immediate higher resistance at $225. Following this, added resistance is located at $240, $244 (bearish .786 Fibonacci Retracement), $250, and $263 (bearish .886 Fib Retracement).

If the bullish pressure continues to drive ETH further higher above $265, additional resistance is located at $280, $286, and $300.

The Stochastic RSI is primed for a bearish crossover signal in oversold territory which could suggest that the bulls may be a little overstretched.

Ripple Price Analysis

7ab7c3de57662f687f68e8de64457afd9351573dbf35acde0826d90d47872c0e.png

XRP/USD - From 2020 Onward - DAILY CHART

What Has Been Going On?

Taking a look at the daily chart above for XRP, we can see that it is also trading within an ascending price channel. 

The coin had previously been trapped at the $0.20 level and struggled to break above this over the past 6-weeks of trading.

The cryptocurrency had found support last week at the $0.18 level and managed to rebound higher from here. It slowly ground higher into the resistance at $0.195 (bearish .382 Fibonacci Retracement level) and struggled here for 5-days.

In yesterday’s trading session, we can see that XRP exploded higher from the $0.195 resistance to break above $0.20 and the 100-days EMA at $0.208. It continued to push higher until it reached $0.218. 

In today’s trading session (April 29th) XRP pushed further higher from $0.218 to break above $0.22 and reach a high of $0.2345 where it met resistance at the upper boundary of the channel. It has since dropped lower as it faces resistance at $0.225, provided by a bearish .5 Fibonacci Retracement level.

Are We Bullish Or Bearish?

The break above $0.20 has finally put XRP into a bullish trading condition, in-line with Bitcoin and Ethereum. It would need to drop beneath $0.208 to turn neutral and would have to fall beneath $0.18 before turning bearish again.

Where Can We Go From Here?

If the buyers continue to drive higher above $0.225, resistance lies at $0.2345 and the upper boundary of the price channel. Above the price channel, resistance is located at $0.241 (1.414 Fib Extension), $0.25, and $0.254 (bearish .618 Fibonacci Retracement level).

If the bullish pressure continues to push XRP above $0.26, higher resistance is expected at $0.28 and $0.296 (bearish .786 Fibonacci Retracement level). Beyond $0.30, additional resistance lies at $0.317 and $0.337 (February high-day closing price).

On the other side, if the sellers step in and push lower, support can be found at $0.218, $0.21, $0.208, and $0.20. Beneath this, added support lies at $0.195, $0.183 (.382 Fib Retracement), $0.18, and $0.167.

How do you rate this article?


84

1

CryptoChartWizard91
CryptoChartWizard91

I dont *always* make good predictions, but when I do they're the best


Crypto Chart Wizard
Crypto Chart Wizard

My personal opinions and analysis of my the crypto projects that I follow. Not a financial advice.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.