- Bitcoin price is at an inflection point and its next move will determine the fate of altcoins.
- Ethereum price looks to be favoring bears for now, but a recovery rally in BTC could prevent a fateful downswing.
- XRP price rallies after positive developments of the SEC vs. Ripple lawsuit, but gains could come undone if buyers fail to step up.
Bitcoin (BTC) price sits on a stable support level that has provided an opportunity for buyers to accumulate. After multiple failed attempts to scale higher and set up an uptrend, BTC is back at the aforementioned barrier of $27,000, while investors wait with bated breath. Ethereum (ETH) and Ripple (XRP) are both highly dependent on BTC’s next move and are unlikely to catalyze a strong trend without it.
Bitcoin price needs to take control
Bitcoin (BTC) price has been consolidating around the $27,000 support level after seven days of nonstop selling. With no discernable directional bias, BTC could head either way. The optimistic outlook would involve a sweep of Monday’s low at $26,694, followed by a quick recovery above the aforementioned support level.
A recovery rally has the potential to propel Bitcoin price higher to the $28,660 level.
BTC/USD 1-day chart
While the bullish outlook makes logical sense, it is not set in stone. Investors need to wait for a confirmation on if Bitcoin price bounces from the $27,000 level or flips it into a resistance barrier. If the latter scenario comes into picture, it will invalidate the bullish thesis and potentially trigger a correction to $25,290 and $23,905 levels.
Ethereum price at critical point
Ethereum (ETH) price set up a bearish divergence sell signal on the daily chart as noted in the previous article. This technical formation occurred between January 14 to May 13 and resulted in a steep 17% plummet in four months.
This move knocked ETH down to $1,735. The next critical support floor is at $1,705, which is extremely important for the smart contract token. A bounce from this level could trigger a move to $2,028, but investors need to wait for Bitcoin to establish its directional bias.
ETH/USD 1-day chart
A failure to rebound from the $1,705 support level could see Ethereum price slide down to $1,249 after a 26% downswing.
Ripple price slows down
Ripple (XRP) price saw a massive spike in buying pressure after a small victory in the SEC vs. Ripple lawsuit. XRP price exceeded the $0.422 support level and shot up by 8% after the news broke out.
But this upswing was ephemeral. As investors booked profits, Ripple price started collapsing and is currently trading at $0.447. A flip of the $0.532 support level will be a buy signal that could propel the remittance token to the $0.609 and $0.765 hurdles.
Read more: XRP lawsuit: Victory edges toward Ripple after Judge Torres denies SEC motion
XRP/USD 1-day chart
A daily candlestick close below $0.422 level will create a lower low and attract more sellers. This move would invalidate the bullish thesis and trigger a 17% correction, first to $0.348 and subsequently to $0.288.
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