- Bitcoin sees declines beneath the 200 3-day Simple Moving Average, highlighting weak buying strength.
- Ethereum seems ready to breach the $2,800 – $3,000 support confluence.
- Ripple enters the $0.626 – $0.689 buy zone, showing hope for the token.
Bitcoin saw its price sliding beneath critical support, gradually showing sellers overwhelming buyers. Though the previous two times Bitcoin tagged this level triggered a bullish action, things seem different this time, and BTC may head southward. Ethereum, XRP, and alts may see a similar pessimistic fate.
Bitcoin Price Action
Bitcoin formed an ascending channel on its 72-hour chart. The setup comes after connecting the three swing lows and three swing peaks seen since 13 January. The past two drops had BTC tagging the 200 3-day SMA before an aggressive rebound.
Nevertheless, the narrative changed, this time, as Bitcoin gradually breached the mentioned SMA while heading towards the ascending channel’s bottom trend line. Meanwhile, the setup remains bullish and may trigger rebounds unless BTC drops beneath the lower trend line.
A potential upward move may push BTC towards the 50- and 100-day Simple Moving Averages at the $42,704 highs. Overcoming this challenge may propel the crypto towards the $46,198 yearly open before exploring the psychological level at $50,000.
Meanwhile, a daily candlestick closing beneath the support at $34,752 will cancel the ascending channel plus BTC’s bullish thesis.
Ethereum at Break-or-Make Point
Ethereum price action appears weak with the latest drop by BTC. Bears dragged the leading alt towards the support confluence, stretching between $2,800 and $3,000. This foothold remains crucial as it comprises a bullish cross by the 50- and 100-day SMA and a demand region.
For now, Ethereum breached the SMAs and approached the bottom limit of the mentioned demand region. Nevertheless, a swift recovery plus a rebound could lead to an uptick for ETH.
The resulting leg-up may see Ether retesting 200-day Simple Moving Average at $3,495 before exploring the $3,703 low volume node. Any surge past these zones will necessitate amplified bullish strength surges and remains unlikely without Bitcoin’s support.
A 24hr candle closing beneath the support confluence’s bottom limit of $2,820 will cancel the bullish case with a lower low. That can see Ethereum crashing towards $2,584 lows.
XRP Nears a Launching Pad
Ripple made another U-turn as XRP reentered the $0.62 – $0.68 buy zone. That could push the alt towards the 70.5% retracement at $0.657 before launching an upward action.
The resulting surge may trigger a 17% surge towards $0.772, the 2022 volume POC (Point of Control). Remember, Ripple saw the highest trade volume in this area. Flipping the obstacle into support may see the run-up extending to tag the hurdle at $0.854. failure to do that might lead to a local high formation.
Meanwhile, XRP breaking beneath the foothold at $0.601 will form a lower low, canceling the alt’s bullish narrative. The remittance token could plunge towards the support at $0.548 before steadying to rethink directional bias.