BTC bulls take advantage of recent dip with $40,000 in sight

• Bitcoin price could climb 7%, recouping the ground covered since the November 9 rejection from the $37,972 range high.
• Ethereum price defends the $1,935 support level at all costs, with success likely to initiate a 10% rally to $2,200.
• Ripple price shows weakness, breaks the triangle to the south as the 25-day EMA provides support at $0.6183.

Bitcoin (BTC) price is showing strength again after a stark correction on Tuesday that bruised the market. Ethereum (ETH) is following the trend set by the largest cryptocurrency by market capitalization. However, the same cannot be said for Ripple (XRP), at least not yet, as the remittance token’s price is showing weakness. 

Also Read: Bitcoin price drops, $90 million in open interest wiped out amid jitter over spot BTC ETF window closing

Bitcoin price pulls north as momentum restores

Bitcoin (BTC) price is pulling north, trying to recover all the ground lost in the recent crash that saw up to $90 million in open interest wiped out of the market. With the 25-day Exponential Moving Average (EMA) coming into play at $34,572, BTC is trying to reclaim territory above the critical resistance at $36,788.

For a confirmed move north, investors should watch for Bitcoin price to break and close above the $36,788 level. This will set the tone for BTC to target the $37,972 range high before reaching the $38,000 psychological level.

In a highly bullish case, Bitcoin price could extend its reach to tag the $40,000 psychological level, with such a move constituting a 10% climb above current levels.

The Relative Strength Index (RSI) is tipping north, suggesting momentum is rising, while the Awesome Oscillator (AO) holds in positive territory. This adds credence to the bullish thesis.

BTC/USDT 1-day chart

Conversely, another rejection from the $36,788 resistance level could see Bitcoin price losing support due to the 25-day and 50-day EMAs at $34,572 and $32,456, respectively, before dipping into the supply zone turned bullish breaker where it could test the 100-day EMA at $30,528.

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Ethereum price holds above $1,935

Ethereum (ETH) price maintains above the $1,935 level, a crucial support that could spell doom for ETH if lost. With the RSI tipping north and the AO holding in the positive zone, ETH could scale north, restoring itself above the $2,029 support in order to ride the ascending trendline. This could ship the second-largest cryptocurrency by market capitalization to the $2,136 range high.  

ETH/USDT 1-day chart

However, if selling pressure increases, Ethereum price could slip below the $1,935 support. A decisive move below this level would confirm the downtrend, with ETH likely to test the 25-day or 50-day EMA at $1,892 and $1,806, respectively.

In a worse case, Ethereum price could tag the 100-day EMA at $1,763, with a break and close below it invalidating the bullish thesis under the $1,753 support level.

Also Read: Ethereum Price Prediction: Eighteen-months ascending triangle pattern appraises $4,000 target for ETH

Ripple price breaks the triangle

Ripple (XRP) price has shown weakness, breaking out of the triangle to the downside amid reducing volatility. Increased selling pressure could send XRP below the 25-day EMA at $0.6181. A break and close below the $0.5981 would lower optimism for a move north.

XRP/USDT 1-day chart

However, if buyer momentum increases, Ripple price could restore back above the lower trendline of the triangle above $0.6584, which would set the tone for a move to $0.7000.

In a highly bullish case, the gains could extend toward the Fair Value Gap (FVG) between $0.7519 to $0.7623, with Ripple price filling the inefficiency and restoring balance.  

Also Read: XRP price could extend gains with Ripple’s likely win through $20 million settlement with SEC