News & Analyses

Until BTC flips $64,300, altcoins’ bleed could continue

  • Bitcoin price could rally 20% if bulls make a stable move above $64,300.  
  • Ethereum price is close to bottoming out with a 26% upside potential under wraps for ETH holders.
  • XRP would be good for entry, safe rather once Ripple price reclaims 0.6700 as support floor.

Altcoins are going through a rough patch as Bitcoin (BTC) price continues to conceal directional bias in the higher time frames. In the lower time frames, however, a flip of the $64,300 into support would be the redeeming feature to cauterize the bleeding seen among altcoins.

The altcoin market capitalization is still holding well above the $250 billion level, positioning itself for a future move to the upside, should BTC show strength. An interesting observation, however, is that while the Asian session has been trying, the European session continues to front run a sell-off in the New York (NY) session. This means a good NY session would bode well for the broader market.

Also Read: Altcoins in disarray as BTC conceals directional bias

Bitcoin price could be primed for 20% rally

Bitcoin price action is consolidating within two converging trendlines that slope downward as they gradually narrow the price range, effectively forming a falling wedge pattern. The target objective for this technical formation is a 20% move north to $76,116.

Nevertheless, this breakout may not be here just yet as momentum continues to fall as shown by the lower lows and lower highs on the Relative Strength Index (RSI). The Awesome Oscillator (AO) is also still in negative territory, typically signifying a bearish trend in the market and that the downward trend may persist in the near term.

A break below $60,660 support could see Bitcoin price provide another buy opportunity below $60,000, or in a dire cause, slump all the way to $56,000 before a pullback.

BTC/USDT 1-day chart

On the other hand, if the bulls defend $60,660, Bitcoin price could use this level as the jumping off point for further upside, activating the bullish reversal pattern by recording a decisive candlestick close above $63,871 on the one-day time frame. A candlestick close above this level would invalidate the bearish thesis.

Also Read: Bitcoin price dips into $61K but large holders buy BTC ahead of 20% upside potential

Ethereum price is close to bottoming out

Ethereum price is withstanding the worst of the weakness seen in BTC, but this could end soon as the $2,900 support looks primed to defend. The RSI is defending against further downside, while the AO flashes green as it edges toward positive territory.

A show of strength from ETH bulls could see Ethereum price recover. A stable higher high above the peak of the Monday trading session at $3,221 could instigate a 26% move north for the Proof-of-Stake (PoS) token to the profit target of $4,083.

ETH/USDT 1-day chart

Conversely, if Ethereum price slips below $2,900 and closes below it on the one-day time frame, it would invalidate the bullish thesis. This could trigger more selling, sending ETH to the $2,800 before a possible recovery.

Also Read: Ethereum may be gathering momentum for potential rally, Vitalik Buterin introduces EIP-7702

Ripple price must ascend beyond $0.67 for safe entry

Ripple price has recorded higher lows, reinforced by those on the RSI, suggesting a growing bullish trend. However, XRP will only be safe to buy once the price reclaims above $0.6700, levels last tested on March 15. Such a move would constitute a climb of nearly 30% above current levels.

XRP/USDT 1-day chart

However, if traders begin to cash in on the gains made since Ripple price bottomed out at $0.4188 on April 13, the trend could be reversed. Confirmation of this would be seen by a slip below the 50% Fibonacci placeholder of $0.4952 and ultimately a lower low below the May 1 bottom of $0.4782. This would invalidate the bullish thesis.

Also Read: SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51

Cryptocurrency prices FAQs

Source link

News & Analyses Analyses