- Bitcoin price has more room for upside, but the threat of a downside risk keeps growing.
- Ethereum price shows signs of rejection around the $2,789 to $3,167 supply zone.
- Ripple price continues to consolidate around the $0.604 support level.
Bitcoin price has been on a steady uptrend since its crash on January 24. The uptrend is approaching a vital resistance barrier, where it could face rejection and a potential downswing. Investors need to exercise caution with Ethereum, Ripple, therefore, and other altcoins since they might follow suit.
Bitcoin price upside limited
Bitcoin price crashed on January 20 and January 22 and then seemed to stabilize around the weekly support level at $34,752. Since then, BTC has rallied 18% and is currently hovering at $38,349. The up move may be capped by the supply zone, extending from $40,794 and $44,387.
The lower limit of the zone coincides with the fair value gap’s upper limit. A move beyond this confluence, therefore, seems unlikely and investors can expect a retracement from there to the weekly support level at $34,752.
From the current position, Bitcoin price has room for a 7% upside.
BTC/USD 1-day chart
On the other hand, if Bitcoin price produces a higher high above $44,387, the uptrend will continue, however, a daily candlestick close below $34,752 will invalidate the bullish thesis.
Ethereum price approaches its limit
Ethereum price has risen roughly 30% over the past ten days and is currently testing the supply zone, extending from $2,789 to $3,167. This barrier will pose stiff resistance and is likely to be where bulls face exhaustion.
Market participants can expect the Ethereum price to retrace to the weekly support level at $2,324 if the price rotates at the resistance barrier. In a dire case, ETH could slide as low as $1,730 where it will collect the sell-side liquidity resting below it.
ETH/USD 1-day chart
While things are looking limited for Ethereum price, a daily candlestick close above $3,413 will create a higher high and invalidate the short-term bearish thesis. This move has the potential to further propel ETH to $3,951.
Ripple price continues to consolidate
Ripple price crashed in response to the Bitcoin crash on January 20 and January 22. The drop for XRP stabilized around the $0.604 support level. Since then, the remittance token has continued to consolidate around the said barrier.
This coiling up will eventually lead to a massive move in either direction. Judging by the current state of BTC, however, there is a good chance this sideways movement will continue before the Ripple price breaks lower and collects the liquidity resting below $0.518.
XRP/USD 1-day chart
Regardless of the bullish outlook due to the consolidation, upside for the Ripple price is capped at $0.739. Any move beyond this barrier is unlikely due to the presence of a resistance cluster there. A daily candlestick close above $0.817 will invalidate the bearish thesis and potentially kick-start a move higher.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
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.