Following a breakthrough from a rising wedge, Bitcoin price is maintaining the strategically crucial 50-week simple moving average (SMA).
Following a breakout from a rising wedge, the price of Ethereum is still holding the climbing 2020 trend line.
The price of XRP is increasing its trading range, but it is still dead money for long-term investors.
The breakout of Bitcoin’s price from the rising wedge puts downward pressure on the flagship cryptocurrency, although there are plenty of support levels below the current price. The price of Ethereum is being guided by a growing descending triangle that started on May 20. Meanwhile, the XRP price remains adrift, providing no indications of long-term plans and frustrating investors looking for the rapid gains that characterized trading until the April high.
Bitcoin’s price finished at $36,731 on May 19, after hitting a psychologically significant intraday low of $30,000. BTC is currently trading at $33,604, suggesting that the flagship cryptocurrency has lost 8.5 percent in the last 50 trading days, demonstrating that pricing, not brilliantly stated future plans, is what matters. Indeed, if market participants had focused on the price of Bitcoin, they would have seen numerous fluctuations of 20-30%, resulting in significant portfolio outcomes. As a result, there are moments when you should sail and times when you should row.
Bitcoin price plummeted yesterday from a rising wedge pattern that had controlled the digital asset since its June 22 low of $28,800, increasing the likelihood that the digital asset’s risk is tilted to the downside for the foreseeable future.
The rising wedge pattern’s measured move is 27%, implying a final Bitcoin price bottom of $25,000 for this leg lower. It would be a crushing blow to the lingering BTC bullish narrative, and, more significantly, it would turn the sturdy support around $30,000 into a stumbling block for any rebound attempts.
The BTC decrease would also confirm the breakdown from the bigger head-and-shoulders pattern, which was initially triggered on June 22, and destroy the support provided by the 61.8 percent Fibonacci retracement level of the 2020-2021 rally at $27,175, which was first triggered on June 22.
On a weekly ending basis, Bitcoin must hold the 50-week SMA at $31,445 and the head-and-shoulders neckline at $30,600 to prevent a bearish conclusion.
Chart of BTC/USD on a daily basis
Unless Bitcoin price can close above the wedge’s top trend line and the Anchored VWAP from October 21 at $37,706, it is expected that the churn that has dominated the market since May 19 will continue.
FXStreet’s analysts assess where BTC might go next now that it appears to be on the mend.
The price of Ethereum finished yesterday at $2,330, below the lower trend line of a rising wedge pattern, resolving the price structure that had controlled the cryptocurrency since its June 22 low. Furthermore, the smart contract behemoth dropped below the secondary confirmation target of $2,160 before halting at the February high of $2,041, increasing the chances of the bearish resolution gaining traction in the coming days.
The measured move of the rising wedge pattern is the bottom of $1,717 on June 26th, which is a 20% decline from the current price. The advance would wipe out support at the $2,041 February high, the $2,008 200-day SMA, and the $1,930 ascending 2020 trend line.
A weekly closure below $1,717 would set off the wider descending triangle pattern (highlighted in blue) and expose ETH investors to a risky forecast that includes a 40% drop based on the triangle’s measured movement. A 40% drop from the triangle breakout would result in a price of under $1,000.
Chart of ETH/USD on a daily basis
The interim bearish prognosis would be meaningless if Ethereum price closed above the 50-day SMA at $2,351, but the descending triangle’s top trend line, now at $2,590, will continue to be a problem. As a result, the ETH bulls face a difficult road ahead.
Although the momentum low occurred on May 23, the Ethereum price is still looking for a price low. Although it may have happened on June 22, the charts’ bias on various timeframes is negative, implying lower prices or, at best, further range-bound activity.
FXStreet’s analysts assess where ETH might go next, given that it appears to be on the rise.
On July 1, the price of XRP declined from a small rising wedge pattern before consolidating along the vital support level of $0.650. The international settlements token slipped below the support level yesterday, widening the price range and maybe foreshadowing a further attempt to test the 78.6 percent retracement level at $0.555 and sweep the June 22 low of $0.512.
The measured move of the wedge is around 30%, implying that XRP will surpass the Fibonacci level and the June low before finding support around $0.477. It is a 25% drop from the current Ripple price.
Chart of XRP/USD on a daily basis
At best, the price of XRP will remain in a range that includes $0.760 on the upside and $0.650 or $0.555 on the downside. Only a daily closure above $0.760 would shift the Ripple charts’ negative narrative from neutral to bearish.
If a market observer merely looked at the price action of the three major cryptos after their collapse on May 19, it would be evident that it has been a difficult environment, with only sporadic trading opportunities and no decisive trend resolution. In a market controlled by uncertainty and diverging projections, it is therefore advisable to row rather than sail until a clear picture of the future trend and the requisite confirmation is available.
FXStreet’s analysts assess where Ripple might go next, given that it appears to be on the rise./n
