- Bitcoin price is still in the transition period, trying to exit the bear market and re-enter the bullish part of the cycle above $31,800.
- Ethereum price could tag $2,128 upon a decisive daily candlestick close above $1,941.
- Ripple price is at risk of 15% losses to $0.40 unless XRP bulls fasten their grip.
Bitcoin (BTC) price continues to resist falling under bears control as it hovers around the $30,000 psychological level. While the initial run-up in BTC benefitted altcoins like Ethereum (ETH) and Ripple (XRP), the current state of struggle for BTC has caused many altcoins to remain flat. Some altcoins even look primed for a correction as many sell signals erupt on the four-hour and daily time frames.
Also Read: Week Ahead: Buy the dip or sit on your hands?
Bitcoin contracts amid an overbought market
Bitcoin (BTC) price contraction could be a good thing or spell doom for investors depending on how investors play their hand. The king of crypto soared 25% since June 15 to record an intra-day high of $31,431 on June 23 before pulling back 5% to the current price of $30,097.
Based on the Relative Strength Index (RSI) trajectory after breaking below the 70 level, Bitcoin price is suffering in the wake of an overbought market, confirming a sell signal according to Well Wilder’s thesis.
Nevertheless, as bulls look for an entry point, an increase in buyer momentum could see Bitcoin price break into the crucial zone between $31,800 and $35,300. Escaping this zone could clear the path for the flagship cryptocurrency to target higher levels.
The up-facing Exponential Moving Averages (EMA) and the Awesome Oscillators (AO) above the midline suggest that the bulls are still in the lead.
BTC/USDT 1-Day Chart
Conversely, BTC bulls failing to re-enter the market could see bears gain control, with the ensuing pressure sending the king of crypto to the 50- and 100-day EMA at $27,614 and $26,908 levels, respectively. In the dire case, BTC could break below the support confluence between the 200-day EMA and the uptrend line at $25,647, exposing it to the $24,000 lows seen in mid-March.
Also Read: Bitcoin price breaches $31,000 as the IMF attests to the flagship crypto being unstoppable
Ethereum price tests the 50-day EMA support
Ethereum (ETH) price is $1,852 at the time of writing, on course to test the 50-day EMA at $1,821. Unless the prominent altcoin breaks its current correlation to BTC and heads north, its fate is certain. A decisive daily candlestick close above $1,941 could clear the path for a rally to $2,128.
This is plausible considering the AO indicator is still in the positive zone, and the largest altcoin by market capitalization is also enjoying robust support offered by the 100- and 200-day EMA at $1,794 and $1,736 in addition to the 50-day EMA.
ETH/USDT 1-Day Chart
On the flip side, the down-facing RSI suggests fading momentum among ETH bulls, which could give room for bears to take over. Such an outcome could see the PoS token lose all the ground covered over the past two weeks.
XRP bulls must act now
Ripple (XRP) price is trading with a bearish bias, having lost all the ground covered since June 17. The latest downtrend has seen the remittance token flip the 50-EMA support at $0.487 resistance, setting the tone for a continued downtrend.
Amid falling buyer momentum indicated by the dropping RSI and growing overhead pressure as XRP keeps flipping support levels into resistances, Ripple price could break below the 100- and 200-day EMA at $0.471 and $0.454 to retest the $0.402 swing low. Such a move would denote a 15% slump.
This outlook is bolstered by the AO, steadily edging farther away from the midline.
XRP/USDT 1-Day Chart
On the flipside, Ripple price could correct if XRP bulls capitalize on the 100-day EMA support as an entry point, with the subsequent buying pressure restoring the payments token above the $0.495 hurdle. Nevertheless, the bearish thesis would only be invalidated upon a decisive candlestick close above the $0.550 resistance level.
Also Read: XRP sees inflow of $240,000 in a week as crypto funds record largest influx of capital in 2023
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.