- The BoE governor Andrew Bailey says that cryptocurrencies lack intrinsic value.
- Bitcoin sideways trading could lead to an upswing based on the Bollinger Bands.
- Ethereum continues with the rally after stepping above $4,000 for the first time in history.
- Ripple stalls under $1.6 amid a potential breakout to $2.5.
Bitcoin is relatively in consolidation after hitting another hurdle at $60,000. On the downside, support established at $56,000 continues to keep bearish advances in check. At the time of writing, BTC is pivotal at $58,000 amid sideways trading.
Ethereum lifted to new all-time highs past $4,100 over the weekend session. Many cryptocurrency enthusiasts celebrated the move, with some saying that Ethereum was rewarding patient investors.
The flagship cross-border transfer token XRP, on the other hand, settled for support at $1.4 before lifting to $1.6. Overhead pressure at this zone continues to hinder movement toward $2; thus, the correction to the prevailing $1.56.
Bank of England Governor bashes cryptocurrencies
Andrew Bailey, governor of the Bank Of England (BoE), has stressed the institutions' stance toward digital currencies, saying:
"They have no intrinsic value. That doesn't mean to say people don't put value on them, because they can have extrinsic value. But they have no intrinsic value. I'm going to say this very bluntly again, buy them only if you're prepared to lose all your money."
Bitcoin settles for consolidation ahead of breakout
Bitcoin seems to have stalled under $60,000, giving way to a sideways price action. Note that the correction from the hurdle at $60,000 embraced support around $57,280, a confluence formed by the 50 Simple Moving Average (SMA), the 100 SMA, and the Bollinger Bands middle curve.
The bellwether cryptocurrency teeters at $58,150 at the time of writing. Its immediate up is capped by the BB upper curve. The BB squeeze implies that a breakout is around the corner. Therefore, holding above the confluence support is crucial to averting losses and pushing Bitcoin closer to an upswing beyond $60,000.
BTC/USD 12-hour chart
It is worth mentioning that the consolidation has been reinforced by the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI).
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Ethereum goes ballistic to trade new all-time highs past $4,000
The pioneer smart contract token hit a new high above $4,100 following an uptrend sustained since the dip to $2,000 in April. At the time of writing, Ether is exchanging hands at $4,130 as buyers focus on highs beyond $5,000.
All the short-term technical indicators have aligned in support of the upswing. The MACD holds at 352 and maintains a bullish impulse. The RSI has also reinforced the narrative as it settles within the overbought region. If the upward-pointing indicator continues, Ethereum will likely close the gap to $5,000.
ETH/USD 12-hour chart
Ripple draws closer to a technical breakout targeting $2.5
Ripple trades at $1.54 after retreating from $1.6. The weekend session was characterized by sluggish price action whereby bulls have mainly controlled the trend.
An ascending triangle pattern on the 12-hour chart is a key bullish pattern discussed earlier. Ripple may resume the uptrend after making a confirmed break past the horizontal line (x-axis). A 49% uplift is expected to catapult XRP to $2.5.
XRP/USD four-hour chart
On the downside, the MACD shows that overhead pressure is mounting, which may sabotage the liftoff. Therefore, support at the ascending trend line is crucial to sustaining the uptrend. The 50 SMA is also in a position to provide the much-needed support. Other anchors include $1.2, the 100 SMA, and 200 SMA.
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