xrp cryptocurrency price

An inverted BTC reveals price intentions

An inverted BTC reveals price intentions
Written by publisher team

  • Bitcoin is down 7% this week, but the major cryptocurrency is finding support at the 50-week simple moving average (SMA).
  • Ethereum price is down -11% this week, falling below the support level defined by the 2020 ascending trendline.
  • XRP price is down 6% during the week, but it is approaching support surrounded by the 78.6% Fibonacci retracement.

Bitcoin price remains the guide for cryptocurrency market interpretations and forecasts. However, there may be some clarity emerging about BTC’s intentions and, as a consequence, the direction of all altcoins, including Ethereum and Ripple.

Bitcoin price reveals its secret

Take a look at the chart below. Is the pattern bullish, bearish, or neutral? Do you buy, sell or own?

The pattern shown in the chart above is a rising wedge with two touches on the upper trend line and three touches on the lower trend line. The rising wedge continues the original rally from the April low, and the 50-day simple moving average supports the lower trendline. However, is it a bullish scenario?

Bullish wedge patterns are generally classified as bearish, whether they are of the reversal or continuous type. In this case, the rising wedge is a reversal type in which it slopes up with the prevailing trend, indicating that the final price direction will be down – a bearish result.

Interestingly, the above chart is an inverted Bitcoin price, providing a perspective that most market players are not accustomed to analyzing. Thus, the bearish interpretation of the above chart is bullish when viewed from the non-inverted version or the standard chart. It is a falling wedge which is considered bullish, either as a reversal or continuation type.

Below is a standard chart, the price structure is more clear after looking at the mirrored version. Bitcoin price could dip lower and print a new correction lower around $27,800 before rallying higher. Another alternative is for Bitcoin to rise immediately, break out of the upper wedge trendline, surpass the 50-day SMA at $35,093 and move towards exceptional resistance around the 38.2% Fib retracement level of the April-June retracement at $42,589 . A test of the Fibonacci level will result in a return of 30% of the current Bitcoin price.

BTC/USD daily chart

BTC/USD daily chart

With BTC’s 50-week SMA at $31,880 and the 12-month SMA at $32,027 currently providing support, the odds favor an immediate bullish solution to the falling wedge. Moreover, the narrowing of the bitcoin price over the past few weeks, which was highlighted by the Bollinger Band Width (BBW) on the daily chart, indicates an impulsive release from the formation.

BTC/USD weekly chart

BTC/USD weekly chart

With the creativity of the inverse graph, the interpretation of the Bitcoin price structure becomes easier.

Here, FXStreet analysts are assessing which direction Bitcoin could head next as it appears to be tied to a recovery before capitulating.

Ethereum price stuck in no man’s land

On July 13, Ethereum price convincingly broke the support created by the confluence of the crucial February high at $2,041 with the 200-day SMA at $2,036 and the 2020 ascending trend line at $1,984. The daily close below the trifecta of the support was an inflection point for ETH and raised the possibility of a deeper and more volatile decline.

Ethereum price remains below the trifecta of support, discouraging a meaningful bounce from the current price level. The potential downside includes the 61.8% Fibonacci retracement of the 2020-2021 advance at $1,730, the June 22 low at $1,700 and the 2018 high at $1,419. A move to the 2018 high could represent a 26% loss from the current price.

However, ETH investors need to be aware of the possibility of a bear trap. More specifically, Ethereum price is temporarily dropping below the 2020 ascending trend line, creating fear before a quick recovery of the triple resistance line in a sling-shot formation. This scenario supports the emerging bullish expectations for the price of Bitcoin.

The upside potential for ETH includes the 50-day SMA at $2,276 and the upper trendline of the larger descending triangle pattern (in blue) at $2,533, which is 30% higher from the current price.

ETH/USD daily chart

ETH/USD daily chart

A drop below the support triple did not lead to an increase in fear levels, which indicates that the weakness will be short-lived. However, the price of Ethereum is at an inflection point, and the current directional bias is declining, encouraged by the weak cryptocurrency complex.

For now, beware of the potential for a bear trap as ETH is in no man’s land between the 2020 uptrend line and the 61.8% retracement level, but don’t build up until there is a daily close above the previous triple support.

Here, FXStreet analysts are assessing which direction ETH could go next as it looks like a rally is expected.

XRP price dictates that it is not time to rush into investment decisions

Until July 7, XRP price had consolidated above $0.650, but the drop on July 8 scattered the support, and the level became resistance for the international settlement symbol. The strength of the $0.650 level is attributed to the May 23 low of $0.652 and a string of highs going back to early 2021 and December 2020.

The recent failure of the XRP price to recover $0.650 indicates that the XRP price is expanding the trading range that has governed the price action since the end of June. Key range levels include the 200-day simple moving average at $0.747 to the upside and the 78.6% retracement of the 2021 high at $0.555.

The bullish development resulting from the tight XRP price action is the sharp contraction of Ripple’s 14-day Average True Range (ATR) to the April levels that preceded the sustained rally to $1.96. In fact, ATR readings near current levels often precede price trends to varying degrees.

XRP/USD daily chart

XRP/USD daily chart

Of course, the downturn in volatility could extend for weeks, but at the very least, it should prompt Ripple investors to recognize the potential in the recent price action. Without the volatility, the price of XRP would remain between $0.747 and $0.555. For this reason, it is encouraging that speculators refrain from reckless investment decisions until confirmation is achieved.

One last point to bear in mind is that Ripple is approaching a bearish death cross pattern on the daily chart as the 50-day SMA is getting close to the 200-day SMA, putting further downside pressure on the price of Ripple. XRP.

Here, FXStreet Analysts are assessing which direction Ripple could go next as it looks like a rally is expected.


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