- Bitcoin capped at $44,088, but if the bulls can contain the fading, investors can start dreaming of $50,000.
- Ethereum price action sees investors reluctant to break above the 200-day SMA, but tailwinds should help with conviction.
- XRP bulls have a support at $0.78 covering their backs and it should only lead to more upside ahead.
The price of Bitcoin and other major currencies, in this regard, is keeping investors on their toes this morning as most cryptocurrencies were seen hitting hurdles on their way higher – posting slight pullbacks after Asian stocks failed to post a third straight winning streak. It is important that, in all three significant pairs, the bulls keep their act together and the price action remains muted without much fading, to indicate that the recovery was just a dead cat bounce. If investors can hold their positions and not fall into panic selling, there will be more upside and gains on the table by Friday and over the weekend.
Bitcoin price sees a flat line on the RSI, which indicates that sellers are increasing their bets and matching demand on the buy side
Bitcoin (BTC) price streak was cut short on the third day after the price action reached $44,088. The BTC bulls were unable to push the price action beyond this level and instead showed a slight pullback to around $44,000. With the Relative Strength Index (RSI) stable at 40, the bears are in the market and aligning with the demand side of the revolution, pushing price action aside for the time being.
The direction of the BTC price will be determined by who chooses the short straw, bulls or bears. Hence the importance of defending $44,088, a critical level, for the bulls, and keeping the fade in control so that marginal investors gain confidence in the strength of the rally. If so, this could see a significant spike by tomorrow. If the Nasdaq can trade in the green again this evening, expect the volume to explode and see a rapid rise in price action towards $48,760 where the 200-day simple moving average (SMA); The historical level, the monthly pivot and just above the 55-day simple moving average unite together as a common maximum of price action.
BTC/USD daily chart
If fading widens under steadier headwinds, expect a return to S1 monthly support level. Should sentiment deepen further, expect the bears to push the price action lower towards $38,073, with a target of $36,709 as the end of the line in the near term. Further decline will only be possible if negative sentiment is broad-based and visible across many asset classes in the financial markets.
Ethereum sees the bulls unable to break above the 200-day SMA at the moment
Ethereum (ETH) price is similar to Bitcoin’s technical analysis, except that the current fading is under the pressure of a heavier cover that could trigger a massive selloff and form a dead cat bounce and a bull trap. The 200-day SMA gave a stern warning to investors yesterday and this morning that more investments and buyers are needed to break the bear build-up at the 200-day SMA near $3,450. The RSI is already seeing a slight push to the downside, which could lead to ETH price action once again a little bigger than expected.
Expect $3,267 to do the trick and keep the fade in place. This short term level comes from the base of the ascending triangle that broke through XRP this week. This move will see a rebound on demand from the buying side and may escalate into an accelerated move to the upside, penetrating the 200-day SMA firmly. A daily close above the 200-day SMA will serve as the green light for the bulls to move forward and attack the red downtrend line, which could see additional buy-side outflow from swing traders and longer-term investors, bringing the price action back to 4000 dollars in the medium term.
ETH/USD daily chart
With markets on edge over any comment from the Fed or any escalation in geopolitical tensions with Russia or China, expect XRP to re-price quickly as institutional investors will start to withdraw their funds, which will see a sudden move to the downside with the first drilling on 3 $018. The next bottom will target $2,695, which was postponed in October.
XRP price sees bulls holding $0.79, paving the way for a return to $0.88
Ripple (XRP) has breached the descending barrier at $0.78 and is now seeing the same level as support to keep the current fade in check. Once the tailwinds kick in, expect a fast XRP price action to reach $0.84 with a historical line and a monthly pivot. With Friday’s entry, it could mean that investors are ready for the next higher level towards $0.88, where the other historical level and the 55-day SMA will be the entry point for the bears to stop and try to curb the trend back to the downside.
XRP/USD daily chart
The big risk, at the moment, is that as the bulls reversed the downside without any real significant level, the rally could be short-lived with the bulls already unable to rally against $0.84. Bears will come and flock to profit-taking among investors, which could push the price action back toward the opening price this morning as quickly as it has risen. The bull trap will unfold and see the XRP price collapse to $0.58 with the monthly S2 support level and an important historical support level coming into play.