Top 3 Price Prediction Bitcoin, Ethereum, Ripple: El Salvador recognizes BTC as legal tender, BTC and altcoins look ready to pop off


  • Bitcoin price is showing signs of buyers after approval of Salvadoran bill making BTC legal tender.
  • Ethereum price is looking to breach the local swing high at $2,552 after a brief pause.
  • Ripple price bounced off the 62% Fibonacci retracement level at $0.823 as it eyes a breach of $0.877.

Bitcoin price saw a brief setback after failing to slice through a local swing high. Due to the tight-knit crypto markets, Ethereum and Ripple followed suit. However, this weakness in buyers appears to have been a temporary pause as markets look ready to rally.

El Salvador officializes Bitcoin as money

After the announcement during the Bitcoin 2021 conference in Miami on Monday, the Salvadoran legislature passed the bill making Bitcoin legal tender in El Salvador.

The proposed policy was ratified with a supermajority, gaining 62 votes out of 84 earlier today.

The bill will mandate that all businesses accept BTC as payment, with the government acting as a backstop to the highly volatile nature of the flagship cryptocurrency.

President Nayib Bukele provided details on the backstop during a conversation on Twitter Spaces hosted by Nic Carter of Coinmetrics. Bukele added that a trust fund by El Salvador's development bank would hold $150 million US dollars.

Bukele further added that the development bank’s trust fund would be open to holding BTC in the future.

While El Salvador seems to have made history, other Latin American countries might follow suit.

Advisor to the President of Colombia, Jehudi Castro, showed his support for Bitcoin as he retaliated against Peter Schiff’s comments.

A similar development was seen further south as a congressman in Brazil changed his Twitter profile picture to laser eyes, showing his support to Bitcoin.

Bitcoin price prepares for lift-off

Amidst this drumbeat of acceptance, Bitcoin price readies to head higher as buyers resurface. Although BTC dipped into the demand zone ranging from $31,111 to $33,900, the recent uptick has cleared the upper limit. A decisive close above this barrier will confirm the start of a new uptrend.

In that case, investors can expect BTC to start climbing toward the 50% Fibonacci retracement level at $36,774, which is the first significant resistance level.

Breaching past this barrier will indicate the bulls’ intentions and might propel BTC to $39,450 or $40,841. In a highly bullish case, Bitcoin price might even tag the swing high at $42,451.

BTC/USDT 4-hour chart

BTC/USDT 4-hour chart

However, if the buyers fall short, pushing Bitcoin price below $31,097, the bullish thesis would face invalidation. In that case, BTC could slide to $30,000.

Ethereum price bounces off stable support

Ethereum price followed BTC’s path as it failed to rally after the initial bounce. However, ETH is currently testing the immediate resistance level at $2,552; breaching it would allow the buyers to lift the token upward by 11% to $2,847.

The primary reason for the bullishness seems to stem from the fact that El Salvador’s legislature considers Bitcoin as money. Therefore, the crypto market in general will see an uptick in prices as the US markets wake up in a couple of hours.

Therefore, in a bullish scenario, Ethereum price might even tag the range high at $2,910 or sweep the swing high at $2,990.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

On the flip side, if Ethereum price manages to close below the 50% Fibonacci retracement at $2,319, it would signal waning buying pressure. In such a situation, if the sellers work to produce a decisive close below the support level at $2,271, a bearish outlook will evolve for ETH.

Under these conditions, ETH might drop to the 62% Fibonacci retracement level at $2,177 or the subsequent support level at $2,077.

Ripple price approaches crossroads

Ripple price also shows a similar outlook as Bitcoin and Ethereum as it approaches a mid-way point of the $0.651 to $1.103 range. The dip into the 62.8% and the 70.5% Fibonacci retracement levels at $0.823 and $0.784, respectively, make a compelling argument for the bullish case.

Therefore, investors should expect XRP price to topple the 50% Fibonacci retracement level at $0.877, which would mark the start of an uptrend. If this were to happen, Ripple could surge 10% to tag the resistance barrier at $0.969.

The subsequent demand zone, extending from $0.986 to $1.05, will provide stiff competition to the buyers, but clearing this would be uber bullish for the remittance token, allowing it to test the range high at $1.103.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

Regardless of the bullishness, a potential spike in bearish pressure that keeps XRP price below $0.877 will signal the inability of the buyers to cope. Such a move might push Ripple to $0.823 and $0.784, respectively.

A decisive breakdown of the 79% Fibonacci retracement level at $0.746 will invalidate the bullish outlook and push XRP price to the swing low at $0.651.

 

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

XRP Price Prediction: Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical ...

More Ripple news

BoE criticizes Bitcoin and touts potential CBDC would not be energy inefficient

The Bank of England is currently continuing its research on developing a central bank digital currency. The central bank’s director of fintech stated that it had not decided on whether a CBDC is needed.

More Cryptocurrencies News

Tezos price races higher on McLaren NFT expansion, but XTZ still faces hurdles

Tezos price has caught a bid today on the McLaren news, bouncing from the symmetrical triangle’s lower trend line, but the gain has not shifted the bearish bias of the charts. 

More Tezos news

SafeMoon price sheds weak hands, frees SAFEMOON to start new uptrend

SafeMoon price has quietly drifted into the 50 four-hour SMA following the explosive 50% gain into the June 15 high. The fundamental break with the suffocating descending channel has elevated the outlook for ...

More Shiba Inu News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP