- Bitcoin price hints at a sweep of Monday’s low at $19,541 before potentially recovering to $21,874 or even $22,693.
- Ethereum price has filled the FVG to the downside at $1,461 and may be poised for a comeback.
- Ripple price seems stuck between an inclined trend line and an overhead resistance level at $0.333.
Bitcoin price shows that the recent sell-off was quickly undone as bulls came to the rescue. This development was well received by altcoins, including Ethereum and Ripple, which have also experienced quick recoveries.
Going forward, market participants need to exercise caution since BTC did not complete its downside objective after the recent nosedive.
Bitcoin price could be ready for a long squeeze
Bitcoin price dropped 4.4% on August 30 and formed a double bottom at the range low at $19,511. This bearish move failed to sweep Monday’s low at $19,541, instead rallied extremely quickly leaving behind inefficiencies.
As BTC hovers around $20,322, market participants can expect another correction but this time comprising a sweep of $19,541. If so, it could be the buy signal to open a long position in anticipation of a mean reversion play that targets the midpoint of the 10% crash at $20,692.
Beyond this, Bitcoin price could target the imbalance, aka fair value gap (FVG) formed at $22,693. This imbalance occurs when the price moves quickly in a single direction without an efficient exchange between buyers and sellers.
BTC/USD 1-hour chart
If Bitcoin price produces a flip of the range low at $19,511 into a resistance level with a failed recovery attempt, it will invalidate the bullish recovery thesis and trigger a correction to $19,065 and, in some cases, $18,500.
Ethereum price primed for more gains
Ethereum price has wicked down to fill the FVG present at $1,461, following in the footsteps of its big brother BTC after it took a plunge on August 30. Not only was this move efficient, but it also managed to retain the $1,527 to $1,555 support structure.
As a result, Ethereum price could follow the big crypto’s cue and trigger another rally that could result in a revisit of the range high at $1,722. Due to the Merge upgrade, ETH might extend this run-up to retest the resistance level at $1,730.
ETH/USD 4-hour chart
Regardless of the bullish outlook, if Ethereum price produces a daily candlestick close below the range low at $1,420, it will invalidate the bullish thesis and trigger a correction to $1,280.
Ripple price needs to assert dominance
Ripple price shows a lack of bullish momentum as it hovers just above a supporting trend line connecting swing lows since June 19. To the upside, meanwhile, XRP price has a ceiling of short-term resistance, extending from $0.331 to $0.334, potentially boxing it in and capping gains.
Since BTC is likely to retrace again and XRP will probably follow suit, investors can expect a sweep of the $0.318 level prior to any bullish move. The recovery from this level or a premature breakout above the aforementioned resistance barrier could trigger a recovery rally in Ripple price to revisit the $0.340 and subsequently the $0.360 hurdles.
XRP/USD 4-hour chart
If Ripple price produces a daily candlestick close below $0.318, however, without a quick recovery, it will invalidate the bullish thesis and trigger a correction to $0.309.
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.