- Bitcoin price is moving up from the bear pennant pattern before quickly reversing.
- Ethereum price is setting a bear pennant pattern which leads to the downtrend today.
- XRP price bears the lower trend line of the bear flag pattern.
Bitcoin price is flashing a bull trap as the bearish pennant attempts to resolve the upside with limited commitment and emotion. Ethereum price is below the double bottom trigger after the May close in a long-legged doji pattern. XRP price failed to maintain the psychologically important $1.00 level and now expects a significant bearish side for the international settlements symbol.
Bitcoin price is unable to attract the attention of investors
Bitcoin price has been defining a bearish pennant pattern on the daily chart since May 19, before attempting a breakout to the upside yesterday. Today, the breakout was quickly reversed, creating a bull trap and raising the odds that BTC is now poised to sell through the lower trendline of the pennant at $34603.
The attempted breakout appeared with Bitcoin price over 80% of the horizontal distance from the base to the top, indicating a weaker pattern or a less strong continuation. Based on historical precedent, the best price trends develop when the price is between one-half and three-quarters of the horizontal distance.
The measured move target for the bear pennant continuation pattern is $18,320, which is 47% below the lower trendline of the BTC flag at the time of writing. The target depends on the length of the flagpole that precedes the pennant. The target closely coincides with the 78.6% Fib retracement of the March 2020 to April 2021 advance at $16,920.
To achieve a sell-off to the target, bitcoin price will need to resolve the support at the 61.8% retracement of the March 2020 to April 2021 rally at $27,175, followed by the 2017 high at $19891.
BTC/USD daily chart
The bear pennant forms below the intersection of multiple resistance levels that will challenge the bitcoin price for the coming days and weeks if the pennant breakout to the upside regains its momentum. Resistance includes the 38.2% Fib retracement of the historical rally from the March 2020 low to the April high at $41,581, the January 8 high at $41,986, the February 28 low at $33,016 and the 38.2 retracement level. % for the April-May decline at $43,331. Adding to the intrinsic resistance is the convergence of the 200-day simple moving average at $41,578.
With the Bitcoin price upside potential set at 8%-14% and the potential for a drop of ~50%, BTC offers a high reward and a low risk opportunity for bearish investors.
Ethereum price falters, fundamentals improvement takes a back seat to technology
Similar to Bitcoin price, Ethereum price set a bearish pennant pattern that initially appeared to the upside on June 3 but met with significant resistance at the 50-day simple moving average at $2,898. ETH has reversed the breakout attempt and is now testing the lower trendline of the pennant at $2,580.
Since the ETH flag pattern has been resolved near the top, the strength of continuity should be questioned if a bearish breakout appears. Based on the pattern’s flagpole direction, the measured target is $1,257, which is a 51% drop from today’s lower trendline position.
The magnitude of the potential decline in the Ethereum price will travel through the May 23 low at $1,728, the 200-day simple moving average at $1,713, and the 2018 high at $1,419.
ETH/USD daily chart
If the Ethereum price can record a daily close above $3,000, expectations turn neutral for ETH investors and put the smart contract token on track to test the 61.8% retracement of the May correction at $3,369 and then the 78.6% retracement at $3,815.
As price dictates today, the cryptocurrency aggregator environment is highly liquid and subject to wide price swings. The downward slope in Ethereum price predictions can turn very quickly, so investors need to be agile and disciplined in the volume of their ETH trades.
XRP price play with investors looking for an opportunity long in time
For review, XRP price shows a teacup base with a high handle on the four charts, with a measured move target of $1,539, providing a 40% return on the high handle at $1.10. The development of the model was consistent with successful historical precedents, defined by increasing the size on the right side of the cup and then decreasing the size gradually through the construction of the handle.
The optimistic high-handle cup rule failed to materialize after it was voided today with a drop of 8%. XRP price is now trading under $1.00 and at the lower trend line of a larger bearish flag pattern. Failure to stabilize leaves Ripple vulnerable to a test of $0.800 and then the 200-day SMA at $0.701.
The moving target measured for the Ripple bearish flag pattern is $0.432, which provides investors with a 53% drop from the position of the flag’s lower trendline today. It is calculated using the length of the flagpole preceding the flag. A drop of this magnitude leaves the price of XRP stuck in the legal uncertainty price range that followed the November 2020 high to the December 2020 low.
XRP/USD daily chart
If the price of XRP closes above the 10-week simple moving average at $1,164, it will be a reflection of the wealth of investors.
XRP’s price action failed to produce any significant trading results, with the exception of the May 23rd low retracement. Ripple grappled with the negative burden of the broader cryptocurrency market as it tried to piece together an intriguing core story into a compelling narrative for investors.