- Bitcoin price is down 75% since all-time highs.
- Ethereum price has much more space to fall without invalidating the bullish macro thesis
- XRP price could be setting up for a sweep of the yearly lows with a breach below $0.35 as the catalyst
The crypto market consolidates at the lower half of a declining trend. At the current time, most signals are pointing south. The top 3 cryptos will need to pull a total of 360 to restore faith in an end-of-year rally.
Bitcoin price has space to fall
Bitcoin price is down 64% on the year, and 75% since all-time highs at $69,000 were established in November 2021. On December 23, the peer-to-peer digital currency hovers at the bottom half of an extending downtrend. The larger time frame narrative must include significant cues to deem the downtrend over.
Bitcoin price currently auctions at $16,843. A Fibonacci retracement tool surrounding the 2020 low at $3,850 and the all-time high at $69,000 shows BTC hovering just above the unbreached 50% Fib level at $15,017. Thus the Bitcoin price still has a 10% cushion space to fall without invalidating the popular macro Elliot Wave Count proposed earlier in the year.
BTC/USDT 1-Day Chart
Ethereum price points south
Ethereum price is at a 68% loss of market value, matching Bitcoins 75% loss since all-time highs at $4,868. A Fibonacci retracement tool surrounding the pandemic lows at $86 and the all-time highs at $4,868 shows the current price hovering above the 38.2% retracement level.
Ethereum price trades at $1,276 and consolidates within a contracting range. The resolve from the squeezing price action could be a downtrend spike into the 50% ($645 )and 61.8% ($401) Fib levels sometime in the coming months. The bearish scenario creates the potential for up to a 65% decline from Eth's current market value without invalidating Wave 1 of the Macro Count at $366.80.
ETH/USDT 1-Day Chart
Based on Elliott Wave Theory, As long as Wave 1 remains unbreached, ETH still has the potential for one more Crypto rally in the years to come. A second bullish attempt at the All-time highs would yield a 280% increase from the current market value. Thus the $366.80 level can be used as a marker while investing with a dollar-cost average approach.
XRP price aims for the range low
XRP price is down 60% on the year and 81% below the all-time highs at $1.98.
While Elliot Wave provides a cleaner narrative for Bitcoin and Ethereum, Ripple's technicals seem more challenging to apply a macro count. XRP price has experienced turbulent swings in both directions since the pandemic lows at $0.1735. Still, classical technical analysis shows the possibility for a decline into the $0.20 zone.
XRP price is trading at $0.352 as the digital remittance token has fallen back into the midpoint of the 2022 summertime range. The low end of the range lies at $0.30, and the upper bounds are at $0.47, which creates the potential for a 20% decline and up to a 40% increase in market value.
A Fibonacci retracement tool surrounding the aforementioned range shows the golden pocket 61.8% level at $0.35 just below the current auctioning price. Based on Auction Market Theory, a puncture of the barrier could catalyze the 20% sweep of the lows liquidation.
XRP/USDT 1-Month Chart
On the weekly time frame, the bears control the trend. The bulls need to reconquer the previous week's trading range at $0.41 to create more uptrend possibilities.
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.