• Bitcoin price is likely to retrace another 8% and tag the daily demand zone, extending from $36,398 to $38,895.
  • Ethereum price seems to have found a support level at $2,823, suggesting a slowdown of the downtrend.
  • Ripple price trades comfortably above the 50% retracement level at $0.731, possibly sliding lower.

Bitcoin price set up a higher high on the daily chart, and the current retracement is likely to confirm whether bulls are ready or not for a run-up. Ethereum and Ripple show different setups but ultimately will follow in the big crypto’s footsteps.

Bitcoin price to test bulls’ resilience

Bitcoin price sliced through its 50-day Simple Moving Average (SMA) on February 9, establishing a higher high at $45,956. This move exhausted the bullish momentum, however, and is currently undergoing retracement.

If the resulting downswing produces a higher low, it will set the scene for a bullish swing. The daily demand zone, stretching from $36,398 to $38,895, is where BTC is likely to set up a higher low, confirming a bullish outlook, and investors can expect the big crypto to see a reversal around this area.

BTC/USD 1-day chart

BTC/USD 1-day chart

On the other hand, if Bitcoin price produces a daily candlestick close below $36,398, it will shatter the demand zone and see price make its way to the weekly support level at $34,752. A daily close below this level will invalidate the bullish thesis and trigger a potential correction all the way to $29,100.

Ethereum price finds a support level

Ethereum price rallied 41% in two weeks and set up a lower high at $3,284 as it encountered the 50-day SMA. A 10% downswing followed rejection by the SMA, and saw ETH fall to where it currently trades - above the $2,823 support level.

Investors can expect ETH to sweep below this barrier before a directional bias is established. As long as the smart contract token stays above the weekly support level at $2,324, bulls can flourish.

ETH/USD 1-day chart

ETH/USD 1-day chart

If Ethereum price produces a daily candlestick close below $2,324, it will create a lower low and suggest the continuation of the downtrend since November 10, 2021. In this case, ETH could revisit $1,730 and collect the liquidity resting below it.

Ripple price maintains its momentum

Ripple price exploded to $0.911 after it broke out of its two-week consolidation. This 55% ascent has since retraced by almost half, falling back to the 50% retracement level at $0.731 – but not quite, suggesting that buyers are still in control.

If Ripple price retraces lower, the daily demand zone, extending from $0.595 to $0.632, will absorb the incoming selling pressure. This will probably lead to a reversal,  setting a higher low and indicating the start of an uptrend.

If the buying pressure continues to build up, XRP price will revisit the $1 psychological level and collect the buy-stop liquidity resting above it.

XRP/USD 1-day chart

XRP/USD 1-day chart

A daily candlestick close below $0.546 will create a lower low, invalidating the bullish thesis. In this case, Ripple price will tag the $0.518 support level and collect the sell-side liquidity below it. 

 

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 Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why LUNA traders do not have to be in the market all the time

Why LUNA traders do not have to be in the market all the time

Terra (LUNA) price action has slipped below a critical level outlined a few days ago. As price action moves start to get smaller, a big move is set to happen, but it is very cloudy to see where that move will be going.

More Terra News

SEC vs. Ripple case, two key decisions awaited by XRP holders

SEC vs. Ripple case, two key decisions awaited by XRP holders

XRP holders are awaiting key decisions in the SEC vs. Ripple case. Experts believe judge Sarah Netburn could rule on the two key decisions in the lawsuit against payment giant Ripple. 

More Ripple News

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC’s purchase of carbon credits through KlimaDAO partnership represented 104,794 tonnes of greenhouse gasses, equivalent to the Ethereum scaling solution’s debt since 2019. Carbon neutrality has fueled a bullish sentiment among traders and 

More Polygon News

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Shiba Inu price may have bottomed but this can only be confirmed if the current rally persists. Traders should be aware of several factors. Shiba Inu price has suddenly changed as the bulls have printed a significantly large bullish engulfing candle on the daily chart. 

More Shiba Inu news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP