- Bitcoin, Ethereum, and XRP(Ripple) technical analysis and upcoming scenarios explained.
- This is how death cross is effecting Ethereum value and how upcoming death cross in Bitcoin can be invalidated: Explained
- Important resistance zones of Bitcoin, Ethereum, and XRP are explained.
Bitcoin is currently trading at $26,148, marking a 1.21% increase over the last 24 hours. Over the past week, Bitcoin has seen a 1.42% uptick, rising from $25,800 to $26,150. However, looking back at the last 30 days, Bitcoin’s price has experienced a significant decline, dropping from $29,300 to below $25,000, resulting in an 11% decrease.
In the weekly timeframe, Bitcoin is exhibiting a megaphone pattern known as the Inverted Head and Shoulders pattern. This pattern is still in play and has not been invalidated yet. The support range between $24,500 and $25,000 serves as the neckline for this pattern, and if we see a close below this level, the pattern will be invalidated.
In the weekly timeframe, Bitcoin finds strong support, with the next support level at the weekly timeframe located around $20,000. On the flip side, the weekly resistance level is at $31,000. Currently, the 200-day Exponential Moving Average (EMA) at the weekly level is acting as a formidable resistance for Bitcoin. Technical indicators, such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), are indicating bearish signals, with a bearish divergence in play at the weekly level.
In the daily timeframe, Bitcoin is trading within a descending wedge, which is positioned in a crucial zone. Bitcoin is following a bullish structure of higher highs and higher lows. The recent higher low is situated at $24,750, and a breach of this level would shift Bitcoin into a bearish structure characterized by lower highs and lower lows.
The zone spanning from $26,400 to $27,300 presents a formidable resistance for Bitcoin, with multiple resistance points, including the upper boundary of the wedge, the horizontal resistance at $26,950, and the 200-day, 100-day, and 50-day EMAs. Technical indicators offer some relief, as the MACD is in bullish territory, and the RSI is showing a bullish divergence at the daily timeframe.
A bearish scenario could unfold if the 50-day EMA crosses below the 200-day EMA, resulting in a death cross that may lead to negative market sentiment and increased shorting activity. For Bitcoin to maintain a bullish stance, it is essential to break out of the descending wedge, overcome resistance from the 50-day, 100-day, and 200-day EMAs, and establish support above $28,000 to invalidate the death cross.
In the previous week’s Ethereum analysis, it was highlighted that ETH was following a pattern of higher highs and higher lows at the weekly level. (You can access the previous ETH analysis here.) Currently, ETH is approaching the trendline of this bullish structure.
ETH is presently trading below the 200-weekly EMA, a concerning development for ETH traders and investors, as a breach below this level could lead to significant asset value loss. Technical indicators are painting a bearish picture for ETH, with the Relative Strength Index (RSI) at 41 and the Moving Average Convergence Divergence (MACD) also in bearish territory. At the weekly level, ETH has support at approximately $1,400 and resistance around $2,000.
Various scenarios are unfolding for Ethereum at the daily level, each worth discussing individually. Firstly, there is a substantial head and shoulders pattern with a broken neckline currently playing out. The price target for this pattern is $1,120, as detailed in a previous article (accessible here).
Ethereum is also undergoing a bearish transformation, marked by lower highs and lower lows, a departure from its previous structure. ETH has broken its horizontal support at $1,644, and the next support level is around $1,500. Another concerning factor is the looming possibility of a death cross, which has instilled negative sentiment among Ethereum traders and investors. Bitcoin, in contrast, appears to be stronger, with an increasing market dominance, while Ethereum’s dominance is on the decline.
The only bullish scenario observed in the daily timeframe for Ethereum is a bullish divergence, as the price of Ethereum is decreasing while the Relative Strength Index (RSI) is showing signs of improvement.
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XRP is currently caught in a bearish trend marked by lower highs and lower lows, with a significant break below a crucial trend support level, now retesting it as resistance. The next support level for XRP can be found around $0.453.
XRP is encountering substantial resistance in the range of $0.5 to $0.54, comprising trendline resistance, resistance from the 200-day EMA, 100-day EMA, and 50-day EMA, along with horizontal resistance. XRP has also fallen below the 200-weekly EMA, which is unsettling for traders, with a continued downtrend in price action following the break.
The MACD for XRP is in bullish territory, but the Relative Strength Index (RSI) does not currently show significant momentum.
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In conclusion, the cryptocurrency market is exhibiting various trends and patterns across Bitcoin (BTC), Ethereum (ETH), and XRP. BTC has experienced recent price fluctuations, with potential bearish signals emerging, such as the megaphone pattern and bearish technical indicators. ETH faces challenges as it hovers near its bullish trendline and struggles with resistance below the 200-weekly EMA. XRP, on the other hand, is grappling with a persistent bearish trend and formidable resistance levels.
Traders and investors should remain vigilant in this dynamic market, paying close attention to key support and resistance levels, technical indicators, and evolving patterns. It’s important to adapt to changing market conditions and carefully consider risk management strategies as they navigate the crypto landscape.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.