While we typically highlight Bitcoin first in our briefings, we find it fitting to first talk about Ethereum. ETH is currently leading the market and has served as a strong predictive indicator for the direction Bitcoin and crypto at large will go in. Resistance for Ethereum is at $2,000, and, if rejected could result in a possible double bottom over the next few months.
Crypto bulls are elated over Bitcoin’s recent surge to $30,000. Many crypto pundits and influencers are calling for the beginning of the next cryptocurrency bull market, but we do not feel that it is time as of yet. We do not feel that the fundamentals warrant a large move in the digital asset space due to regulatory uncertainty, and a financial crisis taking place in the legacy financial system.
Our primary reason for being cautious about this recent retracement is because of what we are seeing with Bitcoin on a weekly timeframe. As we have spoken about at length in prior briefings, 50% retracements are common for assets before they resume their previous trend. There is a compelling argument to be made that this swing is nothing more than a bear market rally.
XRP was able to hit our price target of $0.57 and is now in a trading range. We have seen an influx of retail buying with speculation that the lawsuit will end favorably for Ripple. Until we see a major news/market event, we expect XRP to remain dormant between $0.57 to $0.45.
