• Bitcoin price nears completion of anticipated gap-fill between the weekly candlestick and the Tenkan-Sen.
  • Ethereum price corrects as Gann's 'Death Cycle,' and overbought Ichimoku conditions weighed on any further upside potential.
  • XRP price is overwhelmingly bearish – but the Point and Figure chart shows a massive bear trap could be developing.

As discussed earlier this week, Bitcoin price action has moved to a threshold that will cover the Ichimoku gap that was preventing higher prices. Ethereum price faced the same cyclical and technical warning as Bitcoin and corrected in a likewise manner. XRP price could be positioned for a swift and explosive move higher if certain conditions are met.

Bitcoin price dives 15% for the week; weekend price action could generate even more selling pressure

Bitcoin price began the week with a series of consecutive gaps between the bodies of the weekly candlesticks and the Tenkan-Sen, warning of an impending retracement. Coupled with the Gann' Death Cycle' (forty-nine to fifty-two-day cycle), the movement was anticipated, as discussed earlier this week. However, Bitcoin may not be out of the woods just yet. A deeper retracement to the Kijun-Sen at $49,000 has a high probability of happening over the weekend.

BTC/USD Weekly Ichimoku Chart

Traders will want to pay special attention to Bitcoin price action as it approaches the Tenkan-Sen. With the gap between the candlesticks and the Tenkan-Sen filled, Bitcoin could very quickly begin another leg higher. In addition, the oscillators on the weekly chart support further upside momentum upon support being found.

Ethereum price corrects as Gann and Ichimoku combined to push ETH lower

Ethereum price action is almost identical to Bitcoin's during this week's trading sessions. Like Bitcoin, Ethereum has experienced a substantial 15% move south and looks like it will push even further. A critical level to watch for Ethereum is the pennant formation on the Composite Index. If the weekly Composite Index closes below the lower trend line, that could signal Ethereum capitulating to the $3,300 value area.

ETH/USD Weekly Ichimoku Chart

However, attention should be given to how Ethereum price reacts on Saturday and Sunday. If there is consolidation above the Tenkan-Sen, Ethereum may take a quick pause before another bullish expansion move begins. A return to the $4,500 value area on Sunday would invalidate any further bearish outlook.

XRP price positioned for a massive bear trap

XRP price has one development that Bitcoin and Ethereum do not: the possibility of a bear trap. And not just any bear trap, but a Point and Figure pattern known as a Bullish Shakeout. The Bullish Shakeout pattern develops when price has dropped two Os below a multiple bottom – in this case, a double-bottom. This highly aggressive pattern can be highly profitable as it often forms the beginning of a prolonged uptrend.

XRP/USDT $0.02/3-box Reversal Point and Figure Chart

The Bullish Shakeout pattern gives a theoretical trade idea – a buy stop order at $1.10, a stop loss at $1.02, and a profit target at $1.78. However, if XRP price drops below 0.98, this pattern is invalidated, and further downside pressure should be expected.

 


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

Is Altcoin Season here as Bitcoin reaches a new all-time high?

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.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

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.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

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.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

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.

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