• Bitcoin price has breached a significant support level at $34,752 on the weekly time frame, hinting at a descent.
  • Ethereum price followed BTC’s lead and crashed below the $2,541 foothold.
  • Ripple price has also flipped below a stable floor but technicals are still reflecting a bullish possibility.

Bitcoin price is in a fragile state after a breakdown of a critical support barrier. Ethereum, Ripple and many altcoins have already crashed a lot and could continue doing so if BTC does not recover quickly.

Bitcoin price at serious levels

Bitcoin price has signaled a bearish breakout from the bear flag pattern that it has formed over the past five months or so. The 52% crash from an all-time high at $69,000 is known as the flagpole. This downswing was followed by a consolidation in the form of higher highs and higher lows, which formed the flag. 

In summary, this bearish continuation pattern forecasts a 52% downswing, determined by adding the flagpole’s height to the breakout point at $38,305. So far, BTC has crashed 13% from this point and has also produced a weekly candlestick close below the $34,752 support level.

A failure to recover above this foothold will likely lead to a crash to $30,000. In a dire case, BTC could nosedive to $18,179, which is the bear flag’s forecasted target for Bitcoin price.

BTC/USD 1-week chart

BTC/USD 1-week chart

While things are looking grim for Bitcoin price, a quick recovery above $34,752 could alleviate the bearish pressure. This development could propel BTC to $36,251, where bulls could fight for establishing a different directional bias.

Ethereum price crumbles

Ethereum price created an ascending parallel channel after three higher lows and two higher highs since January 25. While the consolidation was promising, ETH breached the channel on May 4, signaling that the sellers are dominating. 

Additionally, Ethereum price also sliced through the $2,541 support level, indicating that a sell-off is imminent. Considering the bearish outlook in Bitcoin price, there is a good chance this outlook might arrive soon.

ETH/USD 3-day chart

ETH/USD 3-day chart

Regardless of the bearish outlook, if Ethereum price recovers above the $2,541 barrier, the downswing could be postponed. On the other hand, a three-day candlestick close above $3,703 will create a higher high and invalidate the bearish thesis.

Ripple price remains optimistic 

XRP price is traversing a W-bottom reversal pattern. This setup has been forming since November 2021 and contains a long downswing followed by two retests of a support level. For XRP, the stabilization is happening at around $0.582.

While the recent bearishness has caused the remittance token to breach it, the bullish divergence seems to be unaffected. This technical setup is formed when the asset produces a lower low and the momentum indicator, aka Relative Strength Index (RSI), forms higher lows.

The result of such a pattern is a spike in the asset’s market value. Therefore, investors can expect the second retest to be followed by an impulsive move to the starting point, in this case $1.35. However, the upswing will face a resistance between $0.917 and $0.998.

Clearing these hurdles would propel XRP price to $1.35, which would be a 120% ascent from the current position at $0.556.

XRP/USDT 1-day chart

XRP/USDT 1-day chart

On the other hand, if XRP price produces a daily candlestick close below $0.519, it will create a lower low and invalidate the bullish thesis for Ripple.

 

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

Trading veteran Peter Brandt says Bitcoin price can turn bullish under one condition

Trading veteran Peter Brandt says Bitcoin price can turn bullish under one condition

Renowned chartist trader Peter Brandt has identified one condition that could confirm a bullish reversal for Bitcoin. Brandt believes Bitcoin could now recover from its 70% drawdown in the worst bear market for the leading crypto of all time. 

More Bitcoin News

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

Brad Garlinghouse, CEO of Ripple, has affirmed a move outside the US if the payment giant loses the SEC vs. Ripple lawsuit.

More Ripple News

Where traders can buy Avalanche's AVAX price before the next leg up

Where traders can buy Avalanche's AVAX price before the next leg up

AVAX price has been on a roll since it bottomed on June 19. Since then, the altcoin has managed to provide traders with massive gains. The recent retracement suggests that Avalanche bulls are planning their next leg-up.

More Avalanche News

If Dogecoin price does this, a 30% rally is a no-brainer

If Dogecoin price does this, a 30% rally is a no-brainer

Dogecoin price is at a crucial point in its journey, which could either trigger a minor swing or a pullback that will prepare it for another massive leg-up. Therefore, investors need to pay close attention to DOGE and its upcoming corrections.

More Dogecoin 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