Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Nightmares repeat as BTC flash crashes

  • Bitcoin price slid roughly $7,000 on Wednesday after Elon Musk tweeted that Tesla will not accept BTC.
  • Ethereum price dropped only $270 and is in recovery mode.
  • Ripple eyes a dip into the demand zone ranging from $0.941 to $1.156 before it attempts to rise higher.

The recent Bitcoin price crash seen on Wednesday is comparable to the one in late April. However, unlike the last time, this drop was not due to rumors of new tax proposals. While many altcoins are recovering quickly, DeFi coins seem to be making a faster comeback. 

Tesla drops plans of accepting BTC

The latest slump in the cryptocurrency market seems to be attributed to Tesla CEO Elon Musk’s tweet that revealed the electric vehicle manufacturer would not accept BTC.

According to the tweet, Tesla's decision revolved around the heavy use of coal-powered electricity to mine Bitcoin and its negative impact on the environment.

Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.

However, the note did go on to summarize that “Tesla will not be selling any Bitcoin.” 

The energy consumed to mine BTC has been a decade-long debate despite primarily using renewable energy sources or electricity that otherwise would have gone to waste. According to Dan Held, growth lead at Kraken:

PoW (proof-of-work) is the buyer of last resort for all electricity, creating a floor that incentivizes the building of new energy producing plants around disparate energy sources that would have otherwise been left untapped.

While Musk’s tweet might be conveying Tesla’s opinions, his personal opinions seem to be further from the fact as he tweeted “True” to a tweet from Twitter’s Jack Dorsey, which emphasized how Bitcoin mining incentivizes renewable energy.

Regardless of the opposing views, Bitcoin investors seemed to have panic-sold their holdings, causing a 20% crash.

Bitcoin price creates a new quarterly low

After dropping nearly $9,000, Bitcoin price created a new low for the second quarter at $46,000. As recovery efforts seem to be ongoing, BTC faces pressure from the range low set up on April 18.

For now, Bitcoin price remains indecisive. However, a convincing close above the resistance level at $53,300 will confirm an uptrend. On the other hand, a rejection will kick-start a downtrend that could reenter the demand zone extending from $46,930 to $49,949.

Assuming a bullish scenario, Bitcoin price would primarily consolidate after clearing $53,300. This move would be similar to the one witnessed after the initial crash on April 18 or the recovery after April 26.

A swift upswing that slices through $55,813 will open up the possibility of retesting $57,526 and subsequent levels.

BTC/USDT 12-hour chart

BTC/USDT 12-hour chart

On the flip side, if the sellers overwhelm the buyers around $53,300, a 6% downswing will allow the bears to retest the said demand zone. A breakdown of $46,930 will push Bitcoin price to the recent swing low at $46,000, followed by another 6% drop to $43,000.

Ethereum price finds a foothold

Ethereum price recovered nearly 14% from the crash’s lowest point, which coincided with the 50 four-hour Simple Moving Average (SMA) at $3,788. Although this bounce has allowed ETH bulls to climb higher, only a decisive close above this level would promote an upswing to the next supply level at $4,179.

If the buyers manage to maintain their momentum here or even add to it, a 5% upswing will push Ethereum price back to its all-time high at $4,380.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

However, a failure to stay above the 50 SMA will spell trouble for the altcoin pioneer, triggering a 6% sell-off to the immediate demand barrier that ranges from $3,355 to $3,584. The lower range of this zone coincides with the 100 SMA. Therefore, a breakdown of this will invalidate the upswing for Ethereum price.

Ripple struggles to surge as resistance levels multiply

Ripple price slid 22% as it bottomed around $1.20. However, buyers quickly scooped up XRP, which pushed the remittance token to tag the lower boundary of the demand zone that ranges from $1.372 to $1.477.

A reduced buying momentum has led to a pullback that seems to be heading toward the subsequent demand barrier that stretches from $0.941 to $1.156. Although Ripple has set up lower highs and lower lows since May 4, the bulls can kick-start an upswing from the demand zone mentioned earlier.

In that case, the areas of interest as XRP price surges higher include $1.465, $1.653 and $1.769.

XRP/USDT 6-hour chart

XRP/USDT 6-hour chart

A breakdown of the $0.941 support level will signal overwhelming selling pressure and the start of a new downtrend. Under these dire circumstances, investors could see XRP price drop 6% to tag the swing low created during the crash on April 23 at $0.886.

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

SafeMoon price looks to skyrocket 30% as technicals flash buy signal

A brief technical and on-chain analysis on SafeMoon price. Here, FXStreet's analysts evaluate where SAFEMOON could be heading next.

More Bitcoin news

Uniswap price eyes 20% gains as UNI technicals scream ‘buy'

Uniswap price faced a blockade at $21.51, slowing its recovery. The RSI reveals a bullish divergence in play, hinting at a 20% climb. A breakdown below $18.37 will invalidate the bullish thesis.

More Litecoin news

Litecoin contemplates 17% ascent after reclaiming crucial barrier

Litecoin price experienced the second flash crash, which bottomed on September 21. While the descent was steep, the recovery seems to be coming along well. The recent upswing has pushed past a key resistance level, but LTC needs to hold above it to confirm buyers’ presence.

More Litecoin News

XRP price flips massive support floor into formidable resistance

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple behaves as it trades below key resistance.

More Ripple news


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