Bitcoin price has realized the easy money and is now facing a myriad of resistance levels. Ethereum is pricing the upper trendline of the bearish triangle, but is flashing a bearish momentum divergence on the intra-day charts.
XRP price hits inflection point after rallying 42% over nine trading days.
Bitcoin price has spoiled investors during a relentless rebound from its July low. Still, it’s time for some corrective process to release the price compression generated during the rebound. Ethereum price registers a rare nine-day rebound, confirming a solid low for the smart contract giant. XRP price is double bottoming, increasing the probability of a $1.00 test.
Bitcoin price favors a correction over time, not the price
Bitcoin price closed yesterday for a rare nine consecutive days and a gain of more than 34% on the streak, marking the best nine-day gain since February and, more importantly, a final break from the corrective price action that dominated BTC. since the March crash. In addition, the recovery lifted the daily Relative Strength Index (RSI) to its first overbought value since its March high.
The resumption of dominance in the cryptocurrency complex began with a daily close above the upper trendline of a falling wedge pattern on July 22. The pattern indicated that a bullish resolution of Bitcoin’s price trend was close as downward momentum continued to decline. The result was a bullish engulf week on the bar charts last week, laying the groundwork for this week’s catapult higher. SHIB price has risen.
The pace and magnitude of the move pushed Bitcoin price into a quadfecta of resistance that will dictate BTC’s intentions in the coming weeks. The first point of resistance is the Ichimoku Cloud. It has impacted prices for the past three days. Beyond the Ichimoku Cloud is the June 15 high at $41,322, the 38.2% Fibonacci retracement from the April-June correction at $42,589, and the February 28 low of $43,016. Together, these levels represent a significant barrier to extending the rally in the coming days, especially given the overbought condition on the daily RSI.
An ideal scenario for Bitcoin price is a correction over time, meaning BTC moves sideways with a slight downward drift, releasing the oversold condition. It would be a sign of a strong bid and an unwillingness to make a profit. A price correction kicks off with the June 29 high of $36,675, providing credible support. If the level fails to contain selling pressure, the rising 50-day Simple Moving Average (SMA) at $34,711 should successfully withstand any additional weakness, yielding a nearly 11% drop from its current price . Any weakness below the tactically important 50-day SMA would require a reconsideration of the bullish narrative. Here, FXStreet analysts are evaluating where BTC could be headed as it appears to be headed for a pre-capitulation rebound.
Ethereum price reaches a safe position
Ethereum price has recorded nine consecutive days with a total gain of 33% since the July 20 low, representing the best nine-day return since the May high, lifting ETH to the top trendline of the descending triangle pattern that forces price action since the March collapse.
Unlike Bitcoin price, ETH is not overbought on the daily RSI, suggesting that Ethereum price could extend its rally past the trendline before moving into a correction. However, there is bearish momentum divergence on the six-hour chart, providing the technical impetus for a consolidation at this point. The momentum divergence also corresponds to a rising wedge pattern on the specified time frame. XRP Ripple price has risen.
Ethereum price is getting a massive support layer, framed by the 2020 rising trendline, the 200-day SMA at $2,132 and the 50-day SMA at $2,140. The range is strengthened by the February high at $2,041, providing a safe position for ETH.
Suppose the Ethereum price does not reach the February bottom. In that case, it raises the chances of a retest of the July low of $1,720 and possibly a collapse of the triangle’s horizontal support line. A continuation of the rally above the upper trendline of the descending triangle should encounter no resistance until a cluster of highs just above USD 2,900. Here FXStreet’s analysts are evaluating where ETH could go as it looks poised for higher highs.
XRP price almost shining again
The XRP price traveled 42% over the previous nine trading days, pushing Ripple to the convergence of the 200-day SMA with the neckline of a multi-year head-and-shoulders reversal pattern at $0.772. In the process, the International Settlement Token is activated.