(WEEKLY REVIEW): BTC/USD and ETH/USD Ends 2020 Well, XRP/USD Tumbles Further, Next Mover: U.S. Coronavirus Relief Cheques, Progress of Vaccine

BTC/USD (as of Dec 31, 2020, 3.25 p.m., GMT +8)

Source: Yahoo Finance

ETH/USD (as of Dec 31, 2020, 3.25 p.m., GMT +8)

Source: Yahoo Finance

XRP/USD (as of Dec 31, 2020, 3.25 p.m., GMT +8)

Source: Yahoo Finance

BTC/USD

BTC/USD achieved a great milestone this week as it broke past the $29,000 level on the last day of 2020. At this point, many are speculating, ‘How High Can It Go’? However, some analysts are cautioning a correction is due soon. One of them is Jani Ziedins from Investing.com is on this side. He believes that a correction could come when the $30,000 level is reached, potentially pulling back the price to $25,000 or even $20,000.

ETH/USD

Before the year ended, the ETH/USD bulls were attempting to break past a critical resistance of $747. This is created by 0.5 Fibonacci retracement level for the downside move from January 2021 high to December 2018 low.

For ETH/USD to ride in the bullish waves of BTC/USD, it must hit $750, which is a key resistance. A successful breakthrough past this level would pave the way towards $800.

XRP/USD

If the cryptocurrency world can be likened to a gymnasium class, XRP/USD would be the kid who doesn’t get picked for any teams. Since being sued by the U.S Securities and Exchange Commission (SEC) for the illegal sale of securities, 14 digital assets service providers have since delisted XRP/USD. Unfortunately for Ripple, there looks like more will be joining this list.

This is coming at a bad time, especially in the light of increasing favour from traders for cryptocurrencies. Analyst Tanya Abrosimova from FX Street opines that the short-term trend is still very much bearish, with further downward movement expected. If XRP/USD fails to recover to move above $0.22 which is the former channel support that stopped XRP’s decline since the end of July, it could be moving even further downwards to $0.20 and $0.175.

Should a risk-off sentiment persist in the market, cryptocurrencies would stand to benefit from this. The new year will most likely begin with uncertainty over the Coronavirus relief cheques as well as the state of the global economy. Should the progress of the vaccine move faster and stronger to offset the rise in new cases, this would provide a certain measure of comfort to traders.

As the year ends, it is clear that many things are out of our hands. The best thing to do is to keep our spirits up and hope for light to dawn at the end of this tunnel.

FOLLOWME BTC/USD Overall User Sentiment (as of Dec 31, 2020 at 3.25 p.m.)

Short – 83.13%

Long – 16.87%

BTC/USD (as of Dec 31, 2020, 3.25 p.m., GMT +8) - $ 29,143.05

ETH/USD (as of Dec 31, 2020, 3.25 p.m., GMT +8) - $ 753.02

XRP/USD (as of Dec 31, 2020, 10.25 p.m., GMT +8) - $ 0.2168