- Bitcoin price is stabilizing after the recent crash, hinting at a potential relief rally to $34,752.
- Ethereum price bounces back strongly but the threat of a further crash remains.
- Ripple price could start bleeding again if it fails to stay above the $0.509 barrier.
Bitcoin price seems to have cauterized the bleed wound after dipping below significant support levels. This brief pause in the big crypto’s downtrend has caused Ethereum, Ripple and other altcoins to rebound violently to the upside. However, things could take a quick and unfavorable turn as the LUNA-UST fiasco is still ongoing. TerraLabs' LUNA price has crashed a whopping 93% as the UST peg becomes unstable.
Do Kwan, the creator of TerraLabs seems to have gone AWOL since his last tweet roughly nine hours ago.
Getting close ... stay strong, lunatics
— Do Kwon (@stablekwon) May 10, 2022
Bitcoin price stabilizes for now
Bitcoin price has formed a range, extending from $29,700 to $32,627 and is yet to sweep either of the limits. Considering the recent bounce off the 79% retracement level at $30,315, BTC looks ready to sweep the range high.
In this case, BTC will rally at least 4% from the current position, allowing altcoins to explode. However, a move beyond the $33,100 will be unlikely without a proper spike in buying pressure. Assuming the bulls band together, there is a chance for the big crypto to retest the $34,752 hurdle.
This move would constitute a 10% ascent from the current position.
BTC/USD 1-hour chart
A decisive move below the range low at $29,007 without a quick recovery will indicate that the bulls are weak and invalidate the short-term bullish thesis. In such a case, BTC could sweep $28,500 to collect the liquidity formed in May and July 2021.
Ethereum price bounces back
Ethereum price has been trading below an ascending parallel channel since its breakout on May 6. So far, ETH has crashed 20% and tagged the $2,199 support level. Now the bounce off this barrier seems to be coming along well.
The resulting upswing could propel ETH to the $2,541 resistance barrier, which is where the upside is likely to be capped. Investors need to be cautious as the Bitcoin price could crash lower, taking altcoins down with it.
ETH/USD 3-day chart
If Ethereum price recovers above the $2,541 barrier, however, and produces a day candlestick close above $3,703, it will create a higher high and invalidate the bearish thesis.
Ripple price remains strong
XRP price has swept below the range low at $0.509 to collect the sell-stop liquidity resting below the equal lows formed in June and July 2021. Due to the liquidity purge, the relief rally has propelled Ripple to recover above the $0.509 barrier quickly.
As long as XRP price stays above the aforementioned level, there is a chance of a 16% uptrend to propel it to the immediate hurdle at $0.596. Like many altcoins, the upside is likely to be capped for Ripple around this level due to the uncertain nature of the market.
XRP/USDT 1-day chart
On the other hand, if the XRP price produces a daily candlestick close below $0.509, without a quick recovery, it will indicate that sellers are in control. In such a case, the bullish thesis for Ripple will face invalidation, potentially triggering a further crash to $0.401.
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.
Recommended Content
Editors’ Picks
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.