- Bitcoin price trades range bound in the mid-$23,000 zone.
- Ethereum price reduces stair-stepping price action near the $1,660 zone.
- XRP price is down 3% on the day but maintains support near $0.37.
The cryptocurrency market's current consolidation has investors wondering if it is time to join the bulls or if the sideways price action is a smart money tactic to lure in liquidity.
Bitcoin price consolidates on neutral grounds
Bitcoin price continues to consolidate near the upper bounds of the newly established winter rally. While many investors are hoping for a steeper pullback, the peer-to-peer digital currency's brief pause may be the final stages before the next leg up.
Bitcoin price currently auctions at $23,352. The Relative Strength Index (RSI) confounds the idea that more gains are possible as it continues to hover above the median line. The indicator may suggest that the current price levels are a fair bargain after having rallied by over 50% in six weeks.
Traders can utilize a buy-stop trading method to participate in the next trending phase of the market. A breach above the current weekly high at $24,000 could confirm that the winter rally is set to continue. The next targets lie between $26,500 and the $27,000 liquidity zones. The bullish scenario would result in a 16% increase from Bitcoin's current price.
BTC/USDT 1-day chart
Invalidation of the bullish thesis could arise from last week's market low at $22,722. A breach of the barrier could trigger a downswing targeting the $20,000 level, resulting in a 14% decline from BTC's current market value.
Ethereum price shows stair-stepping cues
Ethereum price continues to find resistance near the $1,700 zone; however, support continues to come in at higher price levels. On March 1, the Ethereum price is down nearly 3% on the day and retests a recently breached trendline while hovering above the 8-day and 21-day simple moving averages (SMAs).
Ethereum price currently trades at $1,622. Similar to the BTC's technicals, the Relative Strength Index also hovers above the median line after finding crucial support near the 40 levels during February 12's decline towards the $1,500 region. On February 25, a higher support level was established near $1,587, and the decentralized smart contract token has produced stepping price action ever since.
Considering these factors, a continuation of the winter rally, which has taken ETH 36% higher since January 1, stands a a fair chance of occurring. The next key level for bulls to aim for is the $2,100 liquidity zone, resulting in a 30% increase in market value.
ETH/USDT 1-day chart
As the uptrend remains highly elevated, traders must remember to practice healthy risk management. A breach below the previous support zone at $1,587 would alter the market structure of the ascending support levels and give way to a steeper decline, targeting liquidity levels as low as $1,250. The bearish scenario would create the potential for a 24% decline from Ethereum's current price today.
XRP price is on the cusp
XRP price is experiencing a downtick as bears have induced a 3% decline since the New York session's opening bell. Still, the bearish Influence has not been enough to all the market structure as the Ripple price shows higher lows produced this week near the $0.37 zone.
XRP price currently auctions at $0.375. An Elliott wave count surrounding the winter rally has an impulsive wave structure with an invalidation point at Wave 1 at $0.3549. For this reason, unless a lower low is produced, the market structure still has an overall bullish sentiment, with XRP on pace to target the untagged liquidity levels near $0.44.The bullish scenario would result in a 19% increase from Ripple's present price.
XRP/USDT 1-day chart
Invalidation of the overall uptrend would occur with a breach of the $0.3549 level; however, early evidence to suggest a downswing was underway would be the loss of this week's low at $0.3708. A break would open the possibility for a correction as low as $0.30, resulting in a 19% decline from XRP's current market value.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Google, Apple could remove Binance from their app store on Philippines SEC request
The Philippines SEC has requested Google and Apple to remove applications controlled by Binance from their App stores. The exchange’s Philippines-based users are finding the exchange inaccessible to remove their funds.
XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations
Ripple filed its response to the SEC lawsuit on Monday, arguing that XRP institutional sales before and after the court ruling show no disregard for the law. The firm asks for a civil penalty of no more than $10 million against the $2 billion requested by the SEC.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?