Bitcoin and Ripple Analysis | BTC/USD & XRP/USD Market Update

Recently, we’ve seen cryptocurrencies do fairly well, despite the fact that there is so much uncertainty. Perhaps we are starting to see a little bit in the way of maturity in these markets, as traders start to look at digital assets as a way of getting away from additional markets. For example, with the US government shutdown, we have seen quite a bit of strength in the Bitcoin market, showing that there is much more trust in Bitcoin than there once was. After all, it had been pretty far out on the risk appetite spectrum, meaning that several years ago, the government shutdown probably sent Bitcoin lower, maybe even right along with the stock indices.

Bitcoin

Bitcoin (BTC) has broken above the crucial $120,000 level over the last several days and is now threatening the $125,000 level. The $125,000 level obviously has a certain amount of psychology attached to it, so don’t be surprised to see a bit of hesitation. However, on the short-term chart, we have seen a significant amount of buy on the dip behavior, and that might continue to be the way forward. Any significant pullback at this point would more likely than not see plenty of buying pressure sooner or later, especially as you get closer to the $120,000 level. Anything below that level could bring into focus the $117,000 level, which had been a somewhat important resistance level previously.

Volume has been somewhat normal as of late with the occasional spike. As things stand right now, it looks like things are quieting back down so a short-term pullback would make a certain amount of sense, although it should offer plenty of value for those looking to take advantage of cheaper prices in the Bitcoin market.

Ripple

Ripple (XRP) finds itself going sideways at the moment, sitting just above the 50 Day EMA. It also tests the $3.00 level, so I do think a certain amount of psychology is coming into the picture at the moment, and that could have a definite effect on what happens next. If we can break above the $3.10 level, then Ripple could go quite a bit higher. In that environment, we probably see most cryptocurrency markets doing fairly well, although Ripple is in its own bubble, as traders continue to adjust expectations on usage via the banking system.

However, it’s worth paying close attention to any move toward the $2.70 level, as it is a major support level, especially as it is backed up by the 200 Day EMA. Ultimately, it looks as if there are plenty of buyers on short-term dips in this market, as Ripple continues to be a favorite of retail traders. While it does not have the same institutional backing as Bitcoin, Ripple is finding itself paid more attention to as time goes on. Volume is reasonable, although not explosive at the moment.

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