Crypto market kicks off engines, as ETH targets best day since May
- The price of Bitcoin is on track for the best day since June 13 but remains down 8% for July.
- Ethereum’s price rebounded 12% from dominant support around $ 1,700.
- The price of XRP rose 10% today after hitting an oversold value on the daily Relative Strength Index (RSI).
Bitcoin price is leading a widespread rally for the cryptocurrency complex after several altcoins hit an inflection point yesterday. It’s an interesting development for the price action this month, but it doesn’t permanently remove the downward bias that plagued cryptocurrency investors in July. Confirmation of a trend change will come with follow-up for Ethereum and Ripple over the next few days as old resistance levels are overcome on a daily close basis.
Support of Bitcoin price masters with bullish results is now possible
Bitcoin price builds on early gains as FOMO overtakes the cryptocurrency market after a sustained decline from early July highs. The rebound took BTC above the psychologically important $ 30,000 and towards resistance marked by the confluence of the 50-week Simple Moving Average (SMA) at $ 32,277 with the upper resistance line of the descending corner around 32 $ 800.
The falling wedge pattern is a bullish development for BTC after weeks of price fluctuations around $ 30,000. This implies a decline in bearish momentum and the potential for a sharp, convincing rally if a breakout occurs.
To trigger a sustainable rally, the price of Bitcoin must record a daily close above the 50 week SMA at $ 32,277, the upper resistance line of the wedge descending to $ 32,800 and finally, the 10 week SMA at $ 34,873. The 10 week SMA invites a big challenge as BTC has not closed above the moving average on a weekly basis since early May.
Above $ 34,873 Bitcoin price will be prepared to track resistance around the 38.2% Fibonacci retracement of the April-July correction to $ 42,589. The level closely matches the January high of $ 41,986.
Based on the measured movement of the descending corner, the price of Bitcoin will dismantle resistance around the Fibonacci retracement and hit a price target of $ 46,300, a 40% gain from the breakout of the pattern. The BTC target is closely correlated with the crash week high in May at $ 46,646.
BTC / USD weekly chart
On the downside, the price of Bitcoin is expected to maintain the lower support line of the lower coin around $ 27,670 and the 61.8% retracement level of the lead starting in March 2020 at $ 27,175 on a daily closing.
A failure by BTC to maintain levels could extend the correction to the 2017 high of $ 19,981 if the cryptocurrency market falls back following massive sell-offs.
Here, FXStreet analysts are assessing where BTC could be heading next as it appears tied to a pre-capitulation rebound.
Ethereum price strongly bid as anxiety dissipates
Ethereum’s price yesterday successfully tested the major support level around $ 1,700, dictated by the May 23 low of $ 1,728, June 22 low of $ 1,700, the low of $ 1,700. June 26 from $ 1,717 and the 61.8% Fibonacci retracement level of the ETH rally starting in March 2020 at $ 1,730. Interestingly, the four-level average is $ 1,719 and yesterday’s low was $ 1,720.
The current ETH gain of almost 12% is a convincing answer to the successful test. If it holds, it positions the price of Ethereum to test the noticeable resistance gap between the psychologically significant $ 2,000 and the intersection of the 2020 ascending trendline with the 200-day SMA at $ 2,083. . This would represent a total gain of 18% from yesterday’s close and further unleash heightened anxiety in the market.
A decisive close above the 200-day SMA releases the price of Ethereum to target the 50-day SMA at $ 2,213, bringing the gain from yesterday’s low of 25%. However, yesterday an FXStreet article revealed a large number of out-of-the-money addresses around $ 2,000, suggesting the level will be a tough test for ETH’s emerging bullish momentum.
ETH / USD daily chart
If the price of Ethereum cannot support today’s bullish momentum and fall again, it must maintain the level of $ 1,700 at the daily close. Failure will project a rapid decline in the formidable support created by the convergence of the 50-week SMA at $ 1,413 with the 2018 high at $ 1,419. Any weakness in ETH beyond these levels can induce a sell to the 200 week SMA at $ 590.
Here, FXStreet analysts are assessing where ETH could be heading next as it looks tied to a breakout after holding above key support.
XRP Price Kicks Engines, Seeking Higher Flight Resumption
The 9% gain for the XRP price at the time of writing put the international settlements token above the 78.6% Fibonacci retracement level of the lead starting in December 2020 at $ 0.555. Additionally, considerable momentum can lift Ripple above the 50 week SMA at $ 0.571 on a weekly close basis and hence a bullish hammer candlestick.
Today’s rebound follows a test of the June 22 low at $ 0.512 and an oversold reading of the daily RSI. To confirm the low price of XRP requires a daily close above the May downtrend line at $ 0.631 and then the critical resistance defined by the May 23 low of $ 0.652. This is a 15% gain from the current price, but a responsible approach to negotiating the Ripple price structure.
Above $ 0.652, XRP price will hit downside resistance of 50 day SMA at $ 0.724, then organized resistance at 200 day SMA at $ 0.755 and neckline of inverted head-shoulders pattern 2018-2021 around $ 0.773. A rally towards the neck line would give a gain of over 18% from $ 0.652.
The Ripple outlook becomes more exciting with a weekly close above the neck line as there is no resistance of significance up to psychologically significant $ 1.00. This would signal that the XRP price has started the engines looking for profitable results for investors.
XRP / USD Daily Chart
Obviously, the strength of the XRP price could be a one-day event, and the renewed sell asserts control again. A daily close below the June 22 low of $ 0.512 would increase the odds of Ripple testing the 200-week SMA (average) at $ 0.457. Any below-average weakness is currently not factored into the macro model for XRP price.
It’s not very common for a day to change a trend, but it can wake market speculators from their slumber, again focusing on tracking and accurate and timely trigger prices. For now, this is about the daily close and its position in the price structure of Bitcoin, Ethereum, and Ripple. Nonetheless, the market has kicked off its engines, improving the technical circumstances of the three major cryptocurrencies, at least for now.
Here, FXStreet analysts are assessing where Ripple might be heading next, as it looks tied to a rally ahead of lower lows.