Bitcoin (BTC) on the way to $70,000, Shiba Inu (SHIB) keeps trouble away, XRP hits crucial resistance level

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Bitcoin is showing a robust trend that suggests a possible move towards the $70,000 level. The current price action reflects strong bullish sentiment, and if the momentum continues, Bitcoin could well be on its way to a new all-time high.

A technical analysis of the Bitcoin chart shows that it has continuously formed higher highs and higher lows – a classic indicator of an uptrend. The moving averages are aligned to support further growth, with the short-term averages above the longer-term ones, suggesting that the immediate trend is up.

Bitcoin/USD chart from TradingView

Key support levels were established at $54,683 and $48,151, which provided solid foundations during the recent advance. As long as these levels hold, the path towards $70,000 remains open.

However, it is noteworthy that purchasing power is showing signs of fatigue, as evidenced by the declining volume in the recent uptrend. This divergence between price and volume could suggest that there could be a consolidation or a minor decline before another significant move higher.

Despite the dwindling purchasing power, there is a possibility of a supply shock in the Bitcoin market. A supply shock occurs when there is a sudden decrease in the available supply of Bitcoin, often due to hoarding by long-term holders or institutional takeover. Such a reduction in liquidity can lead to a rapid increase in price as demand exceeds supply.

Shiba Inu explodes

Shiba Inu continues to show bullish performance keeping market woes at bay. The token appears to be gearing up for another rally, potentially taking it to new highs.

SHIB price analysis shows a clear uptrend, with the asset breaking through several resistance levels over the past few months. The token has made steady gains, attracting both retail and speculative investors drawn to its volatile but lucrative market movements. Support levels have risen accordingly, with the token finding new floors in higher price ranges after each rise.

The current trend for SHIB is positive as the token shows resilience and maintains its gains despite broader market fluctuations. The immediate resistance to watch is at the recent high; If SHIB achieves a breakthrough, there will be little to prevent it from reaching new record levels.

In a bearish scenario, a sudden shift in investor sentiment or broader market dynamics could trigger a sell-off leading to a sharp correction. The meme coin space is teeming with new entrants looking to replicate SHIB's success, and competition could sap interest and negatively impact price.

XRP on the edge

XRP recently approached a significant resistance level at $0.64, a price point that has acted as a key holding point for the asset in the past. This level is crucial for XRP's continued upward movement and a breakout could signal a new bullish phase for the cryptocurrency.

Currently, XRP is trading in a range where the moving averages are beginning to realign in a way that could indicate an impending golden cross – a technical chart pattern in which a short-term moving average crosses a longer-term moving average, typically indicating a potential bull market on the horizon.

In the bullish scenario, the golden cross would materialize and with a strong volume breakout above the $0.64 resistance, XRP could enter a new uptrend and aim for previous highs. This could potentially attract more investors, both retail and institutional, resulting in a significant price increase.

However, there is also a possibility of a downtrend. If XRP fails to break above $0.64, it could result in a price rejection that could cause the price to fall back to lower support levels. These levels, around $0.55 and $0.52, could act as consolidation points before another attempt at resistance. A fall below these support levels could indicate a longer-lasting downtrend, potentially erasing recent gains.

About the author

Arman Shirinyan

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.

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