- Bitcoin price can advance at least 8% due to the fair value gap present up to $56,361.
- Ethereum price slows down as it approaches a critical resistance level at $4,071.
- Ripple price to face a confluence of resistance at $1.70 or before it.
Bitcoin price has been on a tear with its recent ascent. However, the same cannot be said for Ethereum, Ripple or other altcoins that are showing signs of a sell-off.
Bitcoin price shows strength
Bitcoin price recently pierced the $50,000 barrier in hopes of pushing higher. The fair value gap (FVG) formed during the May 12 crash suggests that BTC should have a resistance-free path up to $56,361, roughly an 8% ascent.
However, this optimistic scenario depends solely on buyers’ ability to keep BTC above the $51,483 level, which is the lower limit of the FVG. If BTC sticks to its boundaries, investors can expect a run-up to $56,361 and, if the bullish momentum persists, the bellwether crypto could take a jab at the $60,000 psychological level.
BTC/USDT 1-day chart
However, if BTC breaks below the FVG’s lower limit at $51,483, it will indicate that there is a weakness among buyers. Such a development will lead to further downswings. A breach of the $50,000 psychological level will invalidate the bullish thesis.
This breakdown could trigger Bitcoin price to a consolidative phase or a move lower.
Ethereum price looks toppy
Ethereum price entered the FVG on September 1 as it rallied roughly 11%. However, this ascent fell short mid-way, leading to consolidation. However, considering the highly cautious nature of Bitcoin price action, things could go south quickly for ETH if BTC crashes.
Therefore, investors should expect a minor crash to $3,524 and, in a bearish case, a 13% descent to the $3,345 support level.
However, any dips in ETH price below $3,345 are expected to be brief due to the massive consolidation between August 8 and August 30.
ETH/USDT 1-day chart
On the other hand, if ETH shows strength and breaches through the upper limit of the FVG at $4,071, it will indicate the resurgence of buyers. Such a move will invalidate the bearish thesis and open the path for a retest of $4,372.
Ripple price approaches confluence of resistance
Ripple price surged roughly 30% between August 31 and September 6 as it pierced the FVG formed on May 19. This ascent indicated strength, but the current state of the market suggests that the trend could reverse, putting XRP price in a tough spot.
On an optimistic note, if the remittance token continues in its direction, investors can expect an 18% upswing until it tags the $1.60 barrier, which is the upper limit of the FVG. Although a move higher is possible, it is unlikely considering the parallel channel’s middle line is acting as a resistance, coinciding with $1.60.
In a bullish case, XRP price might overcome this confluence and tag $1.70.
XRP/USDT 1-day chart
If BTC price shows weakness, XRP price could reflect it and continue to head lower. If the correction produces a decisive close below $1.27, it will indicate that many investors are booking profits.
However, a breakdown of the $1.09 support level will invalidate the bullish thesis and could drag XRP price down to $1.01 or $0.84.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.