- Bitcoin price is close to completing the expected gap between weekly candlestick and Tenkan-Sen.
- Ethereum price corrects with Gann’s “death cycle,” and Ichimoku overbought conditions weighed in on any further bullish potential.
- XRP price is massively bearish – but the point and figure chart shows that a huge bearish trap may be developing.
As discussed earlier this week, bitcoin price action has moved to the point where it will cover the Ichimoku gap that has been preventing price increases. Ethereum price faced the same cyclical and technical warning as Bitcoin and corrected in a similar way. XRP price can be set for a quick and explosive move higher if certain conditions are met.
Bitcoin price fell 15% during the week; Weekend price action may lead to more selling pressure
Bitcoin price started the week with a series of consecutive gaps between the weekly candlestick bodies and the Tenkan-Sen, warning of an impending rebound. Along with Jean’s “death cycle” (a cycle of forty-nine to fifty-two days), movement was predictable, as discussed earlier this week. However, Bitcoin may not be out of the woods yet. A deeper Kijun-Sen bounce at $49,000 is likely over the weekend.
BTC/USD Ichimoku Weekly Chart
Traders will want to pay special attention to the Bitcoin price action as it approaches Tenkan-Sen. With the gap between the candlesticks and the Tenkan-Sen filling in, Bitcoin could very quickly start another rally. Additionally, oscillators on the weekly chart support more bullish momentum when finding support.
Ethereum price corrects with Gann and Ichimoku merger to push ETH lower
Ethereum price action is almost identical to Bitcoin during this week’s trading sessions. Like Bitcoin, Ethereum has seen a massive 15% move south and looks set to push even further. The critical level to watch for Ethereum is the flag formation in the composite index. If the weekly composite index closes below the lower trend line, it could indicate Ethereum capitulation to the $3,300 value area.
Ichimoku Weekly ETH/USD . Chart
However, you should pay attention to how the price of Ethereum reacts on Saturday and Sunday. If there is a consolidation above Tenkan-Sen, Ethereum may stop quickly before another upward expansion move begins. A return to the $4,500 value area on Sunday will invalidate any further bearish expectations.
XRP price has been put into a huge bear trap
XRP price has one development not available in Bitcoin and Ethereum: the possibility of a bear trap. And not just any bear trap, but the point-and-shape pattern known as the upward jolt. A bullish vibration pattern develops when price drops two operating points below a multiple bottom – in this case, a double bottom. This very aggressive pattern can be very profitable as it often marks the beginning of a long-term uptrend.
XRP / USDT Reversal Point & Figure Chart 0.02 / 3 Boxes
The bullish bullish pattern gives a theoretical trading idea – buy stop order at $1.10, stop loss at $1.02, profit target at $1.78. However, if the XRP price drops below 0.98, the pattern will be invalidated, and further downside pressure should be expected.