- Bitcoin price continues to delay its bearish descent as BTC hovers around $27,963.
- Ethereum price consolidates around $1,892 with no directional bias in sight.
- Ripple price hits its inverse head-and-shoulder target at $0.515 after a 13% upswing in the last three days.
Bitcoin (BTC) price action slows down, allowing bears to doubt their strength. As more time elapses, the chances of bulls taking over control of BTC become more likely. A spillover effect, should buyers make a comeback, would be noticeable in Ethereum (ETH) and Ripple (XRP) prices.
Also Read: Bitcoin mining emission approaches net carbon negative as Texas cancels mining curbing bill
Bitcoin price could flip either way
Bitcoin price looks ready to trigger the Power of Three (PO3) setup, as explained in the previous article. But for the pattern to yield a bearish move, BTC needs to flip the $27,514 support floor into a resistance level.
If this confirmation fails to arrive, the chances of a bounce are high, especially considering that the Relative Strength Index has recent flipped above the mean line and the Awesome Oscillator is about to do the same with the zero line. Both momentum indicators are suggesting a rise in the presence of bulls, which could trigger a bounce off the $27,514 support level, targeting the buy-stop liquidity resting above the swing highs formed on April 26 and May 6.
In such a case, investors can expect Bitcoin price to tag the $30,000 psychological level.
BTC/USD 1-day chart
Regardless of the forecast, Bitcoin price will provide a signal on where it will head next. The bearish outlook will kickstart if the $27,514 support barrier is breached. In such a case, the PO3 setup could catalyze a sweep of the $25,296 level for sell-stop liquidity.
Ethereum price lacks directional bias
Ethereum (ETH) price rallied 6% on May 28, clearing a declining resistance level and has been consolidating around $1,894 since then. A pullback into the stable support level at $1,853 would be an opportunity for sidelined buyers to accumulate.
A bounce at this barrier could trigger ETH to rally 9.80% and tag the next critical hurdle at $2,028.
ETH/USD 1-day chart
While things are looking up for Ethereum price, a breakdown of the $1,817 support level will invalidate the bullish thesis. This move could trigger a 6.15% descent to $1,703 for ETH.
Ripple price hits its targets and then some
Ripple (XRP) price breached the inverse head-and-shoulder pattern at $0.466 on May 26. After this breakout, XRP price rallied a total of 13%, passing its target at $0.515. As a result, the remittance token set up a local top at $0.530.
As Ripple price hovers around $0.521, investors can expect a minor retracement to $0.482 before setting up a new bias.
The likely direction for XRP post-pullback would be the buy-stop liquidity above $0.548.
XRP/USD 1-day chart
On the other hand, if Ripple price breaches the neckline and produces a lower low below $0.442, it would invalidate the prevalent bullish thesis. In such a case, XRP price could trigger an 8% correction to $0.408.
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.
Recommended Content
Editors’ Picks
Shiba Inu price stagnancy brings investors’ losses to a 28-month high
Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.
LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier
Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.
THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range
THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27. RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.
Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability
Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.