• Bitcoin reacts to a symmetrical triangle pattern formation, with declines eyeing $25,000.
  • Ethereum on the verge of a breakdown to $1.200 and $1,100, mainly if ascending parallel channel support breaks.
  • Ripple in consolidation but could dive to $0.25 if it closes the day below the 50 SMA.

Joe Biden's inauguration is behind us without any hitches, although former President Donald Trump skipped the national event. Bitcoin and the rest of the cryptocurrency market remained relatively quiet apart from Wednesday morning dip. A minor drop saw BTC refresh the support at $34,000, allowing Grayscale Investments to top up its holdings by 8,000 BTC.

At the time of writing, the cryptocurrency market is turning bearish fast with selected assets such as Ethereum, Aave and Cosmos sliding by 7%, 10% and 10% in that order. Similarly, Bitcoin appears to be hunting for another bottom (higher) before it makes the great move above $40,000 again.

Bitcoin bearish outlook returns

BTC/USD is in the process of confirming a symmetrical triangle breakdown. The 4-hour chart shows the chart pattern's formation with converging trendlines that link a series of sequential peaks and troughs.

Generally, the trendlines are supposed to cross at an approximately equal point referred to as the apex. Symmetrical triangle patterns highlight periods of consolidation ahead of either a breakout or a breakdown.

It helps to note that a breakdown occurs from the ascending trendline and identifies the beginning of a downtrend. On the other hand, a breakout happens at the descending trendline and signifies the start of a bullish trend.

Symmetrical triangles have precise price targets for the breakout or breakdown, mainly measured from the highest point to the pattern's lowest point. For instance, if the chart's breakdown confirms, Bitcoin could be on the verge of a downswing to $25,000.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

Bitcoin has already lost two key support levels, $34,000 and $33,000. The next tentative support is $32,000 and the 200 Simple Moving Average. Other vital levels to keep in mind are $30,000 and $28,000.

Ethereum testing crucial support as declines linger

Ethereum has been caught in a bearish gust of wind sweeping across the cryptocurrency market. The seemingly massive overhead pressure comes barely 48 hours after Ethereum hit a record high at $1,446.

In the meantime, the least resistance path is downwards, especially after Ether lost the ascending channel's middle boundary support. For now, attention has been turned to defending the channel's lower edge and the 50 SMA on the 4-hour chart.

If push comes to shove and the bearish leg overshoots the above crucial levels, Ethereum is likely to refresh the 200 SMA at $1,200.

The Moving Average Convergence Divergence, or MACD, adds credence to the pessimistic outlook.

This technical indicator traces the path of a trend and measures its momentum. It has turned bearish at writing with the 12-day exponential moving average crossing under the 26-day exponential moving average. The odds for a bearish impulse have increased significantly.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

The optimistic outlook discussed earlier will be viable if Ethereum holds above the 50 SMA. Price action beyond the channel's middle boundary would call for more buy orders, pulling ETH toward new all-time highs at $1,400.

Ripple consolidation nears breaking point

XRP is trading at $0.284 after losing support at the 100 SMA. Overhead pressure is bound to increase in the near term, especially with the price dancing beneath the Bollinger bands middle boundary.

The Relative Strength Index is sliding under the midline and could validate the downtrend, eyeing $0.25. Realize that as the Bollinger bands squeeze, a breakout or breakdown draws nigh.

XRP/USD 4-hour chart

The bearish outlook would be thrown out the window if Ripple reclaimed the ground above the confluence established by the 50 SMA, the 100 SMA and the Bollinger band middle boundary. XRP will remain in the woods and susceptible to losses as long as it trades under $0.3.

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

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

HBAR price shows a drop in volume amidst the current downtrend. Hedera Hashgraph has the potential to rally towards 2000%. Traders should keep the smart contract alternative token on their watchlists and consider a dollar cost average approach for investing. 

More Cryptocurrencies news

Solana Price Prediction: How many hacked wallets does it take to spark a bull run?

Solana Price Prediction: How many hacked wallets does it take to spark a bull run?

Solana price continues to show mixed signals during the 2nd trading week of August. While several cryptocurrencies have displayed bullish vengeance, the centralized smart contract token has failed to reconquer losses experienced since May 12.

More Solana news

Is a 75% decline still possible for the Ethereum Classic price?

Is a 75% decline still possible for the Ethereum Classic price?

Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally. Invalidation of the uptrend is dependent on $13 holding as support.

More Ethereum Classic news

Ethereum Price Prediction: Get ready for a Wall Street discount

Ethereum Price Prediction: Get ready for a Wall Street discount

Ethereum price breaches target one at $1800, which was mentioned in July’s market bottom thesis. ETH price shows an influx of deposits on all exchanges. The midterm bullish forecasts are dependent on $1250 holding as support.

More Ethereum news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis