Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Rough Q2 for BTC to headline Tesla earnings, while ETH may drop 30%


  • Bitcoin price momentum continues to fade on the intra-day charts, projecting a break to the downside at any time.
  • Ethereum price is now entangled with the tactically important 50-day simple moving average (SMA).
  • XRP price trades with no intention, forms new channel along $0.65 with major technical obstacles above.

Bitcoin price has been unable to fulfill expectations of a meaningful rally after triggering a multi-month head-and-shoulders pattern. Meanwhile, Ethereum price shows exhaustion and may be near a significant decline. XRP price remains unchanged, offering few clues as to directional intentions.

Tesla to feel the effects of a challenging quarter for Bitcoin

Bitcoin price closed the 2Q down over 40%, marking the worst quarter since 4Q2018. The impact of the substantial loss will extend beyond the retail and institutional investors, hitting publicly traded companies like Tesla, which took on a $1.5 billion Bitcoin position earlier this year.

Tesla announced their initial investment in Bitcoin in February when the cryptocurrency was trading in the range of $32,000-$33,000.

It is anticipated that Tesla will announce in their quarterly report to investors that the impairment cost associated with the Bitcoin position will be between a $25 million and $100 million loss.

According to CNBC technology reporter Kate Rooney, the impairment charge will happen due to existing accounting practices. 

Tesla holds crypto as an intangible asset, and because of the accounting rules, when Bitcoin’s value drops below a certain amount, companies have to mark that down in their financial statements.

Moreover, Tesla cannot mark up the price of Bitcoin until the company executes a sale of the position.

Despite the Bitcoin investment being at a loss, Elon Musk has reiterated that the company has no plans of selling the position in the foreseeable future. 

Bitcoin price searches for a committed bid, but still in hibernation

Bitcoin price has failed to engineer a compelling rally from the June 22 correction low of $28,800, despite the formation of a weekly hammer candlestick pattern and the accompanying bullish momentum divergence highlighted on the daily BTC Relative Strength Index (RSI).

Bitcoin price bounce has plotted a rising wedge pattern with the most recent leg higher showing no impulsiveness or sustainability, creating a new descending trend line that may provoke a BTC dip towards the psychologically important $30,000. 

A close below the rising wedge’s lower trend line and the 50 six-hour SMA at $34,308 will be the first confirmation that Bitcoin price is readying to revisit the correction lows. A decline below $32,703 will be the final confirmation.

With momentum waning and the declining 50-day SMA at $36,000 pressing down on Bitcoin price, the probabilities indicate that the risk is to the downside in the short term.

BTC/USD 6-hour chart

BTC/USD 6-hour chart

A close above the 200 six-hour SMA at $36,057 would negate the bearish projection and position Bitcoin price for a test of the rising wedge’s upper trend line, currently at $37,370. However, BTC will still need to engage formidable resistance at the Anchored VWAP from October 21, 2020 at $37,724 before the flagship cryptocurrency can reach the critical resistance at $42,500.

Here, FXStreet's analysts evaluate where BTC could be heading next as it seems bound for a correction before higher highs.

Ethereum price strikes key resistance as charts press for caution

Ethereum price, like Bitcoin, has plotted a rising wedge pattern from the June 22 low of $1,700 within the context of a larger descending triangle pattern beginning on May 20. In this case, the rising wedge is a continuation pattern as it slopes up against the prevailing ETH downtrend. It projects bearish price outcomes. Those outcomes may be around the corner as the smart contracts giant wrestles with the 200 six-hour SMA (similar to the 50-day SMA).

Note on the six-hour ETH chart below that the most recent high did not touch the wedge’s upper trend line, confirming a decline in momentum, and the current rally high has also fallen short of the upper trend line. At the same time, the RSI shows a bearish momentum divergence with Ethereum price.

If today’s high marks the end of the rally, the measured move of the rising wedge pattern is almost 30%, suggesting a test of the June 22 low $1,700.

A close below the wedge’s lower trend line currently at $2,307 will signal that the pattern is resolving to the downside, and a trade below $2,160 will provide the confirmation.

ETH/USD 6-hour chart

ETH/USD 6-hour chart

However, Ethereum price may continue in the rising wedge pattern, shaking off the resistance from the 200 six-hour SMA at $2,377 and reaching the upper trend line of the larger descending triangle.

Here, FXStreet's analysts evaluate where ETH could be heading next as it seems bound for a correction before higher highs.

XRP price testing the most-patient of investors

After a promising bounce of 45% from the June low of $0.512, XRP has resolved to the downside from a rising wedge pattern and located support at the union of the 50 six-hour SMA at $0.657 and the May 23 low of $0.652. 

The measured move of the rising wedge pattern is approximately 30%, or a price target of $0.477. As a result, XRP price will bust through the 78.6% retracement level at $0.555 and the June 22 low of $0.512 in the process. It would be a 28% decline from the current price.

A daily close below $0.632 will trigger the new leg lower that may find temporary support at the 78.6% retracement. If the selling pressure persists beyond the June low of $0.512, there are no visible Ripple support levels until $0.360.

XRP/USD 6-hour chart

XRP/USD 6-hour chart

XRP price is not actionable from the long side until it logs a daily close above $0.760.

For now, the risk remains to the downside for XRP price.

Here, FXStreet's analysts evaluate where Ripple could be heading next as it seems bound for a correction.

 

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

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets prepare for a bullish October

Bitcoin price is experiencing a momentary downswing as it sets up a falling wedge pattern. Similar to the big crypto, Ethereum price is also forming a bullish pattern. However, Ripple seems to be bouncing off a support floor without any technical formations in play.

More Bitcoin News

XRP and XLM in trouble as CBDCs aim to make cross-border remittances cheaper and faster

The outcome of recent Central Bank Digital Currency (CBDC) pilots shows slashed cost and reduced transaction time. Cryptocurrencies currently utilized for making cross-border settlements, Ripple (XRP) and Stellar Lumens (XLM), are likely to face stiff competition from CBDCs. 

More Ripple news

Shiba Inu price stabilizes as SHIB bulls prepare for 20% take-off

Shiba Inu price saw a massive uptrend on September 16 but was soon undone in the next couple of days as it approached a stable support floor. Investors can expect SHIB to launch here, retesting crucial resistance barriers.

More Shiba Inu News

Cardano price eyes 30% breakout if ADA bulls can overcome this strong hurdle

Cardano price is in a suspended state after its recent breakout from the bullish pattern. If ADA finds a launching pad, there is a high chance a new uptrend begins. Interestingly, there is a confluence of support, indicating a bullish outlook.

More Cardano 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