• Bitcoin price likely to fake-out traders expecting a seasonal/cyclical price collapse.
  • Ethereum price quietly converts to a bull market on the Point and Figure chart.
  • XRP price dependent on Ethereum and Bitcoin for directional bias.

Bitcoin price action completes six weeks in a corrective move, the second-longest corrective period of 2021. Ethereum price has shifted momentum, likely trapping traders who utilize Japanese candlesticks exclusively. XRP price action is stagnant and likely awaits a clear directional move from Bitcoin and Ethereum.

Bitcoin price shows early signs of a new uptrend, likely disappointing many short-sellers

Bitcoin price has begun the process of converting from a bear market on the $1,000/3-box Point and Figure chart to a bull market. The flash crash of December 5th brought Bitcoin to a low that was precisely on the neckline of a prior inverse head and shoulder pattern. The resulting price action has created an opportunity for a long entry.

BTC/USD $1,000/3-box Reversal Point and Figure Chart

The hypothetical long entry is a buy stop order at $50,000, a stop loss at $46,000, and a profit target at $69,000. A two to three-box trailing stop would help protect any implied profits after the entry. This trade is invalidated if Bitcoin price drops to $40,000 before the entry would trigger.

Ethereum price action likely to trap bears

Ethereum price has shifted into a bull market after breaking above the prior bear market trendline at $4,150. This conversion leads the Japanese candlestick chart, which still shows a mix of bearish to neutral conditions. This development has generated a theoretical long opportunity for Ethereum.

The theoretical long entry is a buy stop order at $4,000, a stop loss at $3,750, and a profit target at $5,600. The long entry would be the first entry after the pullback from the conversion. This is a sign of significant strength on a Point and Figure chart.

ETH/USD $50/3-box Reversal Point and Figure Chart

However, downside risks remain. Ethereum price must maintain a support level above the $3,700, or the current Point and Figure chart will return to bear market conditions. If that occurs, then Ethereum will likely return to the $2,800 - $3,000 value areas.

XRP price stuck in a tight range, directional bias unclear

XRP price has made little effort over the past ten trading days to establish a clear direction move beyond consolidation. It has developed strong support and range structure between the $0.75 to $0.80 price ranges. When compared to past XRP analysis, not much has changed.

The $0.05/3-box reversal Point and Figure chart shows the same pattern entry reviewed in past weeks. A hypothetical long entry would occur on the three-box reversal with a buy stop at $1.00, a stop loss at $0.80, and a profit target at $1.70. This trade idea has no invalidation point because the entry would trail further downside movement.

XRP/USDT $0.05/3-box Reversal Point and Figure Chart

If XRP bulls wish to prevent further downside movement, buyers will need to maintain near-term support. Failure to do so would probably trigger a move to the $0.50 value area.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP