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Crypto markets to tumble before higher highs

Crypto markets to tumble before higher highs
Written by publisher team

  • The price of Bitcoin rose by 13% in the first three days of October, leading to bullish expectations for the market.
  • Ethereum price followed in the footsteps of BTC and exited a descending parallel channel, rising by 18%.
  • Ripple price overturned the $1.01 resistance barrier to a stable support floor.

Bitcoin price came under great pressure as it shrunk during its decline. BTC broke out of the falling wedge pattern on October 1 in an explosive fashion, taking altcoins for a spin.

Bitcoin price getting ready to launch

Bitcoin price increased by 13% from October 1 to October 3. While this rally was impressive, its goal was to collect liquidity above the September 18 swing high of $48,834. On October 3, BTC reached its destination, which indicates that the leading cryptocurrency is ready for a correction.

Adding to the credibility of this forecast is the red “one” sell signal of the Momentum Reversal Indicator (MRI). This technical formation predicts a correction from one to four candles.

Therefore, investors can expect BTC to move towards the immediate and stable support platform at around $45,000.

The return of buying pressure around this level is the key to setting higher tops and resuming the uptrend. A decisive close above $53,000 will signal a reversal of the move to $29,000 and an attempt to retest the next psychological level at $60,000.

BTC / USD . 12 hour chart

Investors are cautiously optimistic, as the bullish hypothesis assumes that there will be a return of buyers around $45,000. If selling pressure overwhelms the bulls, it is very likely that Bitcoin will revisit $42,900.

A break below $40,000 will invalidate the bullish theory and likely lead to a drop to $36,276.

Ethereum Price Failed To Maintain

Ethereum price breached its descending parallel channel on October 1 as the big cryptocurrency enjoyed the hack. However, ETH is currently facing a blockade after it failed to breach the 12-hour demand area of ​​$3,400 to $3,545.

A rejection from this level could potentially push the price of Ethereum to $3,202 or $3,154. Moreover, the bearish outlook for Bitcoin is more helpful in this expected corrective wave on ETH.

In some cases, ETH may retest the $3,000 support floor before starting a new impulse wave that cuts the aforementioned demand area and reaches the psychological $4,000 level.

ETH/USD 12-hour chart

ETH/USD 12-hour chart

Regardless of the bearish outlook for Ethereum price, if buyers band together now and push ETH beyond the upper bound of the $3,545 demand zone, it will invalidate the bullish theory and signal that investors are not booking profits.

This development could then allow the ETH bulls to target the psychological level of $4,000.

Price ripple buyers and sellers in the agreement

After days of strife, the price of Ripple (XRP) broke the $1 barrier in October after rising 9.3%. Unlike other coins, the price of XRP appears to be facing a lack of volatility, resulting in a sideways movement below the $1.05 resistance line.

This slow development indicates that buyers are more or less in agreement with sellers. A breakout from this roll is likely to push the transfer token higher. However, if XRP price manages to achieve a decisive close above $1.12, it could mark a 35% rally to $1.53, coinciding with the 70.5% Fibonacci retracement level.

XRP/USD 1 Day Chart

XRP/USD 1 Day Chart

While things are going slow for the Ripple price, the collapse of the $1 foothold will put buyers in a bind. This development could drive the price of XRP down to the support floors at $0.94 or $0.87.

However, a decisive close below $0.87 will invalidate the bullish theory and potentially lower the market cap of the transfer symbol.

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