- Bitcoin price continues to stagnate below the bear flag setup, delaying the inevitable.
- Ethereum price could drop 15% if the $1,280 support level gives in.
- Ripple price is at a crucial foothold, a breakdown of which could trigger a 10% correction.
Bitcoin price could see a minor run-up to retest the recent broken, bearish setup. This development is likely to influence Ethereum, Ripple and other altcoins to do the same. Regardless, investors need to stay focussed on the mid-term outlook, which is still pessimistic.
Investors need to be cautious as September's US Consumer Price Index (CPI) numbers will be announced on October 13 at 12:30 GMT. While the expectation is 8.2%, which is lower than the previous month’s 8.3%, an upside surprise would send the markets into a tailspin as it would confirm expectations for steeper Fed rate hikes.
Regardless of the direction, investors should prepare for a surge in volatility tomorrow.
Bitcoin price waits for volatility
Bitcoin price has breached the bear flag setup, as discussed earlier. This technical formation is a bearish continuation pattern that forecasts an 18% downswing to $15,800. The recent breakdown of this bear flag has triggered this steep correction but lacks one key ingredient - volatility.
Investors can expect the sell-off to occur on October 13, when the Consumer Price Index (CPI) and the inflation numbers will be released. This is high-impact news for the traditional as well as the crypto markets.
Therefore, market participants should prepare for this event to knock Bitcoin price to sweep the June 18 swing low at $17,593 and try to extend this downswing to retest the bear flag target at $15,800.
BTC/USD 8-hour chart
While things are looking gloomy for Bitcoin price, a decisive flip of the $20,737 hurdle into a support level will invalidate the bearish thesis. This move could further extend the run-up to $22,048.
Ethereum price at wits’ end
Ethereum price has also created a bear flag pattern, following Bitcoin’s lead. As discussed in a previous article, this technical formation forecasts a 15% downswing to $1,100. However, ETH bears need to slice through the $1,280 support level.
A breakdown of the aforementioned barrier will signal the start of a downtrend and knock Ethereum price to $1,100. If the bearish momentum is strong, ETH could extend this bearish move to retest the $1,000 psychological level and even dip into the triple-digit territory.
ETH/USD 4-hour chart
On the other hand, if the Ethereum price produces a daily candlestick close above $1,338 will create a higher high and invalidate the bearish thesis. Such a development could see ETH retest the $1,450 hurdle.
Ripple price at critical levels
Ripple price has slipped lower after last week’s rally and is currently hovering above an inclined trend line connecting the higher lows formed since September 21. Moreover, it has also slipped below the Point of Control at $0.490, which is the highest volume traded level since September 15.
Unless Ripple price flips $0.490 into a support floor, bears are in control and are likely to break below the declining trend line mentioned above. This development is a bearish outlook and could trigger another sell-off that would plummet XRP price by 10% to $0.440
XRP/USD 4-hour chart
While the general outlook for Ripple price is bearish, investors can expect a minor bounce to capture the Fair Value Gap (FVG) to the upside at $0.516. If this run-up extends beyond and flips the $0.538 hurdle into a support floor, the bearish thesis would face invalidation.
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
Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback
Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead.
GIGA investor loses $6M to phishing scam via fake Zoom link
On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show
Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.
BNB: Bullish technical pattern validated, eyes all-time high
Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
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.