• Bitcoin price is likely to rally higher and lure investors in for a potential long squeeze.
  • Ethereum price looks ready for a quick run-up from a technical perspective.
  • Ripple price consolidates in a deep-discount mode, hinting at a minor uptrend.

Bitcoin price has been ranging since June 18, but rumors of insolvency have been spreading on multiple popular platforms in the industry. KuCoin, the fifth-largest cryptocurrency exchange in the world is at the center of bankruptcy rumors. 

A popular Twitter user with the screen name “Otteroooo” urged users to withdraw their funds from KuCoin.

The same user has also sounded the insolvency rumors for BlockFi and Celsius well before major media outlets picked up the news. Another popular Twitter user “beetle” also tweeted that “kucoin labeled wallets went from $1.8b to $10m in a day.”

Ethereum, Polygon (MATIC), Numeraire (NMR), and Aave ((LEND) are the only coins that are being held by the wallets labeled KuCoin.

The exchange’s anonymous CEO Johnny tweeted in retaliation to these rumors saying that the exchange has no exposure to LUNA, 3AC, Babel, etc.

Vauld, popular Indian crypto lend and borrow platform that recently expanded into exchange services also halted its deposits and withdrawals as of July. The company stated in its latest corporate statement that it had experienced a “significant amount of customer withdrawals in excess of a $197.7 m since 12 June 2022…”

The statement further added that,

Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.

With another potential collapse around the corner, the overall outlook for Bitcoin price and hence, Ethereum, Ripple and other altcoins are bearish. Despite the bearish backdrop, there might be attempts to trigger quick yet short-lived rallies.

Bitcoin price remains directionless

Bitcoin price is trading well below its second-quarter open at $19,943 and seems ready for a sweep of the bottom of the range at $18,600. Assuming this move occurs, investors can expect BTC to attempt to follow this move with a rally and retest of the range high at $20,910.

This move, while temporarily bullish, will provide investors with an opportunity to short the Bitcoin price. The resulting downswing is likely to sweep the June 18 swing low at $17,578.

BTC/USD 2-hour chart

BTC/USD 2-hour chart

On the other hand, if Bitcoin price produces a daily candlestick close above $21,705, it will indicate that the recovery is strong and invalidate the bearish outlook. Such a development will see BTC potentially climb to the next level of interest at $22,837.

Ethereum price remains optimistic

Ethereum price shows a much higher chance of rallying as compared to Bitcoin price for two reasons. The four-hour demand zone, extending from $938 to $1,008 serves as a support level with the outlook favoring a move up to the equal highs formed at the range high at $1,283.

From a market makers’ perspective, a move to the upside also makes more sense as compared to a downswing, which lacks liquidity. Therefore, investors can expect Ethereum price to rally by 25%.

ETH/USD 2-hour chart

ETH/USD 2-hour chart

While things are looking up for Ethereum price, a four-hour candlestick close below $878 will invalidate the bullish thesis and crash ETH to the $700 psychological level.

Ripple price reveals a potential bullish move

Ripple price is trading in a deep-discount mode, extending from $0.307 to $0.324, indicating that a bullish reversal is likely. The equal highs formed around the range high at $0.386 add credence to the possibility of an uptrend evolving.

Since BTC also shows an affinity to climb higher in the short-term, and it influences the wider market, other altcoins, including ETH and XRP are likely to follow suit and also trend higher. In terms of Ripple price, investors should be prepared for a 22% ascent.

XRP/USD 2-hour chart

XRP/USD 2-hour chart

The bullish outlooks for Ripple price and Ethereum, are based on the assumption that BTC leads the way. If Bitcoin suffers a reversal, however, things could get ugly for all other altcoins too.

If XRP price produces a four-hour candlestick close below $0.286, it will create a lower low and invalidate the bullish thesis.

 

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

Solana price hints at a 50% upswing under these specific conditions

Solana price hints at a 50% upswing under these specific conditions

Solana price shows an interesting setup as it tries to overcome a stiff resistance level. The fifth attempt to overcome hurdles will likely be successful due to multiple bullish confluences. Solana price has been on a clear uptrend since producing the June 14 swing low at $25.76.

More Solana news

Dogecoin price to provide a buying opportunity before exploding 35%

Dogecoin price to provide a buying opportunity before exploding 35%

Dogecoin price sees a slow decline in bullish momentum as a major hurdle puts an end to its explosive move. A pullback is emerging for DOGE and is likely an opportunity that will allow bulls to recuperate and prepare for the next rally.

More Dogecoin news

Former Goldman Sachs banker explains why Wall Street gets Bitcoin wrong

Former Goldman Sachs banker explains why Wall Street gets Bitcoin wrong

According to John Haar, who used to count himself within the ranks of the traditional finance field, a fundamental understanding of "sound money" is preventing Wall Street from embracing Bitcoin. Haar’s views were expressed in an essay on Aug. 14.

More Bitcoin news

Avalanche Price Prediction: A sharp decline in the making?

Avalanche Price Prediction: A sharp decline in the making?

Avalanche price shows a potential sell-off underway, and key levels have been identified. Avalanche price could be depicting early evidence of liquidation underway as the technicals show subtle bearish cues. AVAX price has rallied 90% since July 1st, printing a new monthly high.

More Avalanche 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

BTC

ETH

XRP