xrp cryptocurrency price

Powell says private cryptos may not be necessary, while BTC nears a volatility surge

Powell says private cryptos may not be necessary, while BTC nears a volatility surge
Written by publisher team

  • Bitcoin price continues to narrow, pressing Bollinger Bandwidth (BBW) to the lowest reading since October 15, 2020.
  • Ethereum price is briefly losing its grip on the critical uptrend line set in March 2020, but beware of a bear trap.
  • XRP is losing a pivotal support of $0.650, but the Average True Range (ATR) has compressed to the levels of early April, indicating the incoming volatility.

Bitcoin price is back just over 9% since its May 19 low at $30K, while Ethereum price is flat against the May 19 low and XRP price is approaching a bearish Death Cross pattern on the daily charts.

Powell Updates the Federal Reserve’s Outlook on Cryptocurrency

Today, Federal Reserve Chairman Jerome Powell, in his presentation to the House Committee on Finance, responded to questions about cryptocurrencies by saying that the Fed aims to publish a report on digital currencies in early September. He acknowledged that “the risks to a central bank digital currency are real and there is an urgent need for an appropriate regulatory framework for stablecoins.”

However, Powell was firm in his opinion that the US dollar was not in danger of losing its place as the world’s reserve currency and felt that there might be no need for private cryptocurrencies if Federal Research launched an all-digital dollar. It is commonly referred to as the Central Bank Digital Currency (CBDC).

There is no doubt that the cryptocurrency market will be eagerly awaiting the September report on cryptocurrencies. At the moment, the Federal Reserve appears to be satisfied with the recognition of cryptocurrencies but is downplaying the threat it poses to the position of the US dollar in the global monetary structure.

Bitcoin price may be ready for better results this summer

To review, Bitcoin price has been successfully testing the 12-month SMA support at $32,091 since the beginning of June. The long-term moving average magnet effect contained spikes from the psychologically important $30,000 price level to $40,000. As a result, BTC is slowly tightening, pushing the 20-day BBW to its lowest reading since October 2020.

BBW’s 20-day dip anticipates higher volatility going forward, but BTC’s direction is unknown. A similar level in October 2020 saw the start of the massive advance in April 2021, while in August 2020, the lower reading was followed by a decline in early September.

The July 8th breakout of the rising wedge pattern tilts the odds in favor of higher volatility to the downside. The pattern predicts a measured movement of 27% and a Bitcoin low of $25,000. A drop to the measured target price would confirm the original breakdown of the larger head and shoulders pattern, which was first launched on June 22 and clear the 61.8% Fibonacci retracement level of the 2020-2021 rally at $27175.

However, given the stable support generated by the 12-month SMA for BTC at $32,091 and bolstered by the 50-week simple moving average (SMA) at $31,896, Bitcoin price could post the narrow price action shown in 20 days. BBW with an explosion of upside volatility. It could overcome the resistance triggered by the 50-day simple moving average at $35373 and VWAP anchored from October 21 at $37672. If achieved, BTC will be free to test the complex resistance around the 38.2% retracement level of the April-June retracement at $42,589, which is 30% higher from the current price.

BTC/USD daily chart

Price contraction always causes price to expand or fluctuate. The price of Bitcoin is approaching a moment of increased volatility as the leading cryptocurrency grapples with converging technical hurdles weighing on price action. Certainly, BTC will disrupt early summer slumps for at least a short while.

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

The long-term trend of Ethereum price is at risk

To review, Ethereum price dropped below the lower trend line of a rising wedge pattern at $2,330 on July 8 before establishing some support along the 200-day SMA which combined with the February high at $2,041 and backed by the ascending trendline. for 2020 at $1,965. .

Despite the fortunes of support, Ethereum price fell below support levels yesterday and recorded a daily close below the 2020 uptrend line for the first time. It is shifting the risks of Ethereum to the downside and turning the reliable support of the February high and the 200-day SMA into a resistance role.

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. However, ETH investors need to be alert to the possibility of an emerging bear trap, as Ethereum price temporarily slips below the uptrend line, creating some fear before pushing the smart contract giant significantly higher in a slingshot formation.

The upside potential for ETH includes the 50-day SMA at $2,311 and then the upper trend line of a larger descending triangle forming at $2,540, which is a 27% rise from the current Ethereum price.

ETH/USD daily chart

ETH/USD daily chart

Ethereum price at the inflection point of the 2-month corrective process. The dominant trend is at risk and is being reinforced by a bearish bias in the broader cryptocurrency complex. However, the possibility of a bear trap is a real ETH scenario and should influence any investment decision.

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

XRP Price Position Remains Resilient, With No Direction Intent

Since the breakdown of the rising wedge pattern on July 1, XRP price has been governed by the $0.650 price level, whether as support or resistance. The $0.650 level corresponds to the May 23 low of $0.652 and a series of highs going back to early 2021 and December 2020.

XRP price drop below $0.650 and the resultant failure to bounce can be interpreted as Ripple’s extension of the tepid consolidation range that could include a test of the 78.6% Fibonacci retracement of the 2021 high at $0.555.

The immediate impact of the flat Ripple consolidation under the strategically important 200-day SMA at $0.744 and the neckline of the much larger inverse head and shoulders pattern at $0.770 is a contraction in the 14-day Average True Range (ATR) and a return to April levels that Preceded the jump to $1.96. Hence, the price of XRP has experienced a level of price contraction which may indicate increased volatility.

XRP/USD daily chart

XRP/USD daily chart

Of course, the price deflation could extend for more weeks, but at the very least, it should get Ripple investors to acknowledge that risk is moving forward. However, until the renewed volatility, the price of XRP will lock between $0.770 and $0.555, creating short-term trading opportunities.

Moreover, it must be emphasized that Ripple is approaching a bearish death cross pattern on the daily charts as the 50 day SMA is getting close to crossing below the 200 day SMA, thus exerting more downward pressure on the XRP price .

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

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