- Bitcoin could slump to $18,500 in the coming sessions if the price loses the ground above $19,000.
- Ethereum is likely to drop to $520 if the short-term 100 SMA support fails to hold.
- Ripple has lost the position above $0.6 amid a looming 43% retreat to $0.33.
Sellers seem to be making a comeback this week with a bang. The cryptocurrency market has been bleeding in the last 24 hours, with most digital assets in the red for posting losses between 0.1% and 15%.
NEM (XEM) is the worst-hit crypto asset after losing nearly 15% of its value. Intriguingly, Compound (COMP) has emerged as the best performing crypto for posting double-digit gains of around 15%. The bearish impact is likely to continue during the European session and would stretch to the American session if Bitcoin dived under $19,000.
Bitcoin embarks on a downswing to $18,500
The flagship cryptocurrency has slipped under the 50 Simple Moving Average on the 4-hour chart. This has called for more sell orders in the market, creating instability within the consolidation period.
A massive retreat will come into play if BTC fails to find support above $19,000. Closing the day under the immediate support would be a bearish signal, which would pave the way for the bearish leg to extend to the 100 SMA, slightly above $18,500. When push comes to shove and the selling volume increases, Bitcoin might find itself seeking refuge at the 200 SMA ($17,500).
BTC/USD 4-hour chart
For now, the least resistance path is sideways, as reinforced by the Relative Strength Index. The RSI is holding firmly to the midline support. Closing the day above the 50 SMA might renew the bullish outlook for gains above $19,500.
Ethereum resumes the downtrend eyeing $520
The smart-contract giant has broken under the ascending triangle hypotenuse, as discussed on Monday. Ethereum price also closed the day under the 50 SMA, thus validating the correction. For now, ETH/USD is doddering at $583, while bulls move swiftly to defend the immediate support at the 100 SMA.
The downtrend would stretch to $520, support highlighted by the 200 SMA if Ethereum ends the day below the 100 SMA. The impact of the Relative Strength Index’s bearish divergence is still apparent. The RSI has dived under the midline after hitting highs above 70 at the beginning of December.
ETH/USD 4-hour chart
The bearish scenario will fail to play out if Ether holds the support at the 100 SMA firmly. Buyers will then have ample time and stability to forge the next attack mission on the vital level at $600. Closing the day above the 50 SMA would be a massive bullish sign that could see ETH quickly spike to the crucial hurdle at $620.
Ripple is on the brink of a 43% dump towards $0.3
XRP has lost its position above $0.6 after holding this level for several days. Its upside is capped underneath the 50 SMA. On the downside, Ripple is on the verge of plummeting 43% from the current price level.
The breakdown will be validated if the price slides below the symmetrical triangle pattern. For this technical pattern to hold, a breakout must take place before the trendlines converge. Therefore, with Ripple very close to the triangle’s tip, it shows that the tipping point is nigh.
Declines below the ascending trendline will be accentuated by an increase in sell orders as investors would rush to cash out for profits before they are erased. The 200 SMA is in line to offer support at $0.44. However, the breakdown has a target of $0.33, as seen on the chart.
XRP/USD 4-hour chart
The bearish outlook will be thrown out the window if Ripple manages to hold the 100 SMA in conjunction with the ascending trendline. Besides, stepping above the 50 SMA before the trendlines converge could catapult Ripple 43% higher to $0.9.
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