- Bitcoin price is at risk of consolidating and staying below $30,000 for a long time as stock markets sell-off.
- Ethereum price reemerges above $1,955, but $2,000 might be too much of an ask.
- XRP price tries to stay above $0.40, but the pressure is building for price action to submerge.
Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot after the massive slaughter that happened on the trading floor on Wall Street yesterday. Instead of cleaning up the pink sheets from the floor, the cleaning staff are probably busy sweeping up plenty of burned-out traders that got annihilated overnight as the Dow Jones printed its worst performance since June 2020. Expect the pain to not at all be over yet as bear territory looms for several asset classes, and for cryptocurrencies that are set to enter their worst trading period in history, ‘winter is coming’.
Bitcoin price at risk of saying goodbye to $30,000, for a long time
Bitcoin (BTC) price tanked another 5% on Wednesday as investors threw in the towel on their positions in equities and cryptocurrencies. Whilst buying the dip looked to be a sound plan a few weeks ago, it now looks to be fraught with insecurity. As Bitcoin price recovers, a dead-cat-bounce is likely to unfold that will see price action lower in the next two trading days.
BTC price has dented investors’ confidence and could see more outflows as its volume bleeds further. To make matters even worse, more regulatory crackdowns are being announced by the US State Department, and greater numbers of investors and companies are looking at their ESG rankings, which, admittedly, cryptocurrencies do not perform well at given their massive energy consumption from mining This could result in a bearish weight that keeps Bitcoin price below $30,000 for a very long time. With that pressure, $28,695 will see a squeeze, and on a break, a nosedive is predicted down towards $24,718 or 13% of losses.
BTC/USD daily chart
A reversal to the upside is always possible, however, certainly in these crazy markets where volume is becoming slimmer by the day as investors shift their money to the sidelines. A quick reversal is always possible in thin markets as bulls ramp up prices on sudden high demand. In such a scenario, BTC price could first break back above $30,000 and re-enter the distribution zone between $31,584 and $32,050 before jumping back up to $36,709 longer term.
Ethereum price has a last glance at $2,000 before price action tanks to lower regions
Ethereum (ETH) price has signalled that the game is over for now. The sell-off mentioned in the Bitcoin comments was the final push investors needed to apply the wise market maxim ‘Sell in May and Go Away’. It almost looked like everyone was selling yesterday as bear market territory loomed in almost every asset, which had its reflection in cryptocurrencies, where ETH price tanked 8%, falling back below $2,000.
ETH price sees bulls trying to get their noses back above $2,000, but it looks heavy. Certainly, not only market sentiment weighs, but more and more existential questions are being raised over how sustainable the whole crypto mining industry can be. With all this luggage, a revaluation of ETH price is at hand, with $1,928.89 as the first level to watch, followed by $1,841.75 to the downside, and intermediary support at $1,688.39 providing a safety net.
ETH/USD daily chart
As trading sessions hand over, it could become one of those trading days when we see a complete 180-degree shift in sentiment going into the US session. A tailwind could spill over into cryptocurrencies and lift ETH price back above $2,000, with the next profit target set at $2,148.67. In case ETH price could close above there, further recovery is possible towards $2,278.42, printing 18% gains in the recovery.
XRP price slips back below the technical marker and is set to slide below $0.37
Ripple (XRP) price fell below $0.42 in a correction on Wednesday as the stock market rout overpowered bulls in their attempt to continue Tuesday’s. A similar reflection in the Relative Strength Index (RSI), which is taking a nudge back to the oversold border and, with another move, will be trading below there. As price action remains subdued, do not expect a fierce turnaround anytime soon, as investors will mull over what to do next.
XRP price is thus on the cusp of dropping back to $0.37, with the monthly S2 support level as a floor. As price pressure mounts further, a squeeze could be in effect and see a nosedive move once bulls fold on defending the level. That would trigger a sell-off towards $0.30 and print new lows since February 2021.
XRP/USD daily chart
Alternatively, a bounce off a supportive level could reverse the slide, with the S2 as the best candidate at $0.37. That would trigger a rebound and a rally higher towards the monthly S1 at $0.48, just shy of the $0.50 marker. With a daily close above, the scene would be set for another rally towards $0.52 or even $0.58 as investors fall over each other to get in on the action.
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