Bitcoin liftoff to $60,000 still in the cards

  • Bitcoin’s MVRV ratio falls close to zero, suggesting that it is time to buy.
  • Ethereum looks to the upside again after testing support at $1,400, eyes $1,800 in the near-term.
  • Ripple’s recovery has hit a snag at $0.5, delaying the expected upswing to $0.65.

The cryptocurrency market experienced one of the most significant dips since January after Bitcoin plunged from $58,000 to $45,000. Ethereum also suffered the blow, with losses hitting $1,400 from new all-time highs of $2,040. Ripple’s leading cross-border token, XRP, was not spared by the bearish wave, spiralling downhill to $0.35.

Meanwhile, rebounds also came into the picture almost immediately, with BTC rising above $50,000, Ethereum jumping toward $1,700 while XRP fights for gains beyond $0.5. Selected altcoins have also performed incredibly well, including Uniswap (up 24%), Dogecoin (up 16%), Aave (up 24%) and Cosmos (up 21%).

Bitcoin renews the uptrend toward $60,000

The flagship cryptocurrency is flipping massively bullish after the biggest selloff in weeks. The price appears to have settled above $50,000, allowing bulls the chance to plan the next attack mission to $60,000. On the upside, the 100 Simple Moving Average (SMA) will hinder growth at $52,500 but once this resistance is broken, Bitcoin will lift off toward the coveted $60,000.

A comprehensive outlook on the 4-hour chart shows the Moving Average Convergence Divergence (MACD) turning bullish, although gradually. Traders should be on the lookout for the MACD line (blue) crossing above the signal line, which may signal a position to enter the market.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

The bullish outlook has been reinforced Santiment’s MVRV, a model that tracks the average profit or loss of holders of BTC, which moved over the last 30 days, based on the price when each coin last moved.

It is worth noting that a higher MVRV shows that holders are in profit (likely to sell) but a low MVRV suggests that investors are at a loss or are yet to break even (unlikely to sell). Following the massive price drop, the MVRV is near the zero mark – hence Bitcoin is entering a buy zone.

Bitcoin MVRV chart

Bitcoin MVRV chart

Ethereum makes a run for $1,800 after bouncing off critical support

The pioneer altcoin is trading marginally under $1,700 following a massive breakout from the recent support of around $1,400. A break higher than $1,700 may catapult Ether past $1,800, a resistance zone highlighted by the 50 SMA on the 4-hour chart.

The MACD adds credibility to the uptrend as the MACD line crosses above the signal line. Moreover, continued movement into the positive region could support the rest of the recovery above $2,000.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

Note that a correction may come into the picture if Ethereum fails to close the day over $1,700. On the downside, the 200 SMA is in line to prevent declines from extending beyond $1,600. Other critical levels to keep in mind are $1,500 and $1,400.

Ripple uptrend hits massive barrier at $0.5

XRP has recovered from the losses that tested the critical support at $0.35. However, the push to higher levels faces acute selling pressure at $0.5. For now, the least resistance path is sideways, as highlighted by the MACD.

Traders can watch for the MACD line crossing above the signal line to add their positions in XRP. Besides, as explained earlier, Ripple is still in a buy zone. On the upside, a break above $0.5 would encourage more buyers to join the market, creating enough tailwind for an upswing to $0.65.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

If the cross-border token fails to close the day above this level, a correction may be expected toward the immediate support near 200 SMA on the 4-hour chart. In case of extended declines, anchors such as $0.45 and $0.35 will come in handy.