Bitcoin, Ethereum, and XRP break below critical support levels, suggesting massive correction underway


  • Bitcoin is still slightly bearish despite the fall from levels above $19,000; downside eyes $17,500.
  • Ethereum falls significantly after breaking the ascending triangle support; declines target $500.
  • Ripple could continue with the bearish leg to $0.44 (200 SMA), mostly if the price closes the day under $0.56.

The cryptocurrency market is experiencing the return of bears this week. For over two weeks, Bitcoin, Ethereum, and Ripple held in extreme danger zones. With the three largest cryptocurrencies trading under crucial support levels, extended declines could dominate the market in the coming days.

Bitcoin on the brink of freefall to $17,500

The flagship cryptocurrency is trading at $18,260 after a minor rebound from the support at $18,000. Instability came knocking in the crypto market after BTC failed to overcome the resistance at $19,500 multiple times in the last 14 days.

At the moment, BTC is dancing under the 50 Simple Moving Average and the 100 SMA, which adds credibility to the downtrend. The Relative Strength Index reinforces the bearish outlook, with the dip in the oversold region.

BTC is likely to explore the downside some-more, mostly if it closes the day under $18,200. The bearish leg might extend to the 200 SMA at $17,500 before a significant recovery comes into the picture.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

Ethereum downside eyes $500

The smart contract token continued with the bearish leg after breaking the ascending triangle hypotenuse support. Selling orders increased as bears became overly hopeful that Ethereum will hit lows under $500.

Meanwhile, Ether is trading at $548 after dropping under the 100 SMA support ($575). The final leap to $500 will be validated if Ether closes the day under $560. Minor buyer congestion at $540 and the 200 SMA slightly under $525 might absorb some of the selling pressure.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

The RSI has confirmed the bearish narrative after diving into the oversold region. For now, the path of least resistance is downwards until Ether establishes formidable support where buyers can rebuild the hope for a rebound.

Ripple starts the anticipated dump as sellers get hopeful

Ripple confirmed the bearish scenario explored earlier this week by closing the day under two key levels; the 100 SMA and the triangle’s lower trendline. Overhead pressure on the cross-border token has increased in the last 24 hours.

XRP is trading at $0.55 after dropping from highs above $0.61, traded on Monday. The declines are likely to continue if XRP closes the day under $0.56. Support is expected at the 200 SMA ($0.44), but the symmetrical triangle has eyes on $0.32.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

Bitcoin, Ethereum, and Ripple seem undervalued

The market value related value (MVRV), an on-chain tool by Santiment, shows that Bitcoin and Ethereum have started to erase the investors’ profits. When used in conjunction with the danger zone divergence model, the metric suggests that ETH and BTC have left the danger zone and are only slightly bearish.

Bitcoin/ETH MVRV chart

Bitcoin/Ethereum MVRV vs. danger zone divergence model

However, altcoins display an improving bullish divergence as per the average trader return success. The model can be used to gauge the risk associated with longs on different trading assets.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Crypto bulls unfazed by flash crash

Bitcoin price action initially shakes off strong selling pressure, finds buyers at support, then resumes some selling pressure. Ethereum price action mixed post-all-time high rejection. XRP price awaits its own bullish breakout and an opportunity to outperform its peers.

More Cryptocurrencies News

MATIC price ready for new all-time highs as $188 million flow into Polygon

The total number of transactions on Polygon network dropped nearly 15% due to a rise in transaction fees over the past week. This hasn’t negatively impacted the network as the number of unique daily active users remained stable. 

More MATIC News

AVAX price offers a bullish opportunity before Avalanche hits new all-time highs

Avalanche (AVAX) price has seen a bullish outbreak on Thursday after it broke out above – and then retested – the red descending trend line at $61.62. With even more buyers and bulls coming in, expect a run towards new all-time highs at $81.

More AVAX News

XLM price building base for bullish breakout

Stellar bulls are in the last phase of completing a bullish triangle. As XLM price is getting squeezed against the base ($0.40), expect a quick breakout of 12%. After taking a breather, expect another 10% of profits to follow. 

More Stellar News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP