- Bitcoin falls as expected. Technicals still suggest the anticipated sell-off may not come just yet.
- Ethereum price shows exhaustion, but placing a short could be a risky play.
- XRP price continues to coil near a historical barrier. Going long would be highly risky.
The crypto market shows weakness. Although many traders are witnessing confluences to place a short entry, this thesis remains neutral/bullish until higher liquidity levels are breached, or stronger sell signals manifest.
Bitcoin price could fool early bears
Bitcoin price currently trades at $22,970 as the bearish divergence that manifested on July 29 prompts day traders to open short positions. Still, despite the clear double top pattern on the Relative Strength Index on the daily chart, something doesn't feel right about shorting the Bitcoin price just yet.
The ideal short scenario was mentioned in Monday's thesis. A breach and grab of the liquidity hovering within the $25,200 and $26,400 zone seems like a probable target for smart money operators. Thus traders should be careful of an unfolding leading diagonal that is taking place for the Bitcoin price. If the technicals unfold in said manner, Bitcoin price will perform with extreme erratic behavior. A liquidity grab towards higher targets could occur before a sharp liquidation towards $19,200. A sweep the lows event would also be in the cards targeting $17,622.
BTC/USDT 1-Day Chart
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Ethereum price is too early to call
Ethereum price showed a similar bearish divergence pattern to end the month of July. The signal has prompted an 11% decline for the decentralized smart contract token. Still, the bulls seem to be stepping in near a previous resistance zone at $1,560. If the resistance zone can flip as support, the Ethereum price should rally back towards $1,720 in the short term.
Ethereum price currently trades at $1,654. Placing an entry on either side is all advised as the technicals are still unclear. A daily close above $1,765 could provoke a rally towards $1,900. However, keep in mind that a bearish scenario targeting $1,370 remains in the cards from previous outlooks, and a breach below $1,530 would be an early signal.
ETH/USDT 1-Day Chart
In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
Ripple price is in a dangerous position
Ripple price hovers near a historical trend line. A bearish divergence accompanied by a declining impulse pattern was spotted last week, prompting extreme caution. The bulls have managed to break above the impulsive origin point, which is good news for long-term investors. Still, the Ripple price hovers within a historical trend channel which could prompt an armageddon style sell-off at any time.
Ripple price currently trades at $0.37. The bulls will need to rally through the descending trend channel and tag $0.48 to qualify the digital remittance token in a favorable coin to trade. At the current time, bears should look for a second breach through the lower half of the trend at $0.33. Said price action could be the catalyst to send the XRP price to $0.24. An early signal could be a break of $0.35 for bears looking to be aggressive.
Invalidation of the bearish scenario must remain at $0.48 until further notice. Remember that a breach of $0.48 could create a bullish environment for the XRP price, targeting as high as $2.00 for up to a 240% increase from the current market value.
XRP/USD 1-Day Chart
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
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