|

Top 3 Price Prediction Bitcoin, Ethereum, XRP: Bearish signals warn of further downside

  • Bitcoin price shows strong bearish continuation patterns developing, hinting at lower prices.
  • Ethereum price bearish pennant warns of sub-$2,000 trading levels ahead.
  • XRP price struggles inside Ichimoku Cloud, the threshold for bears to take over decreases dramatically.

Bitcoin price is now inside a bear flag on its daily chart, indicating some further downside pressure could come. Ethereum price nears its final support structure before a powerful Ichimoku short-entry is confirmed. XRP price action is in the unfortunate position of likely transitioning into a new downtrend, even if it moves sideways over the weekend.

Bitcoin price action shaky against critical Ichimoku resistance

Bitcoin price has experienced the same types of whipsaw that all financial markets are currently experiencing. Heightened concerns regarding Russia's invasion of Ukraine and the effect on all risk-on markets, which particularly affects cryptocurrencies.

At the beginning of the week, Bitcoin experienced a strong rally and confirmed an Ideal Bullish Ichimoku Breakout. However, momentum fizzled on Wednesday, and that weakness continued into Friday. Bitcoin price is currently inside the Cloud after failing to find support against the top of the Ichimoku Cloud (Senkou Span B) and 2022 Volume Point Of Control at $42,500.

A bear flag has now developed on Bitcoin's daily Ichimoku chart. Consequently, the short entry from the bear flag coincides with the short entry from an Ideal Bearish Ichimoku Breakout. If there is a daily close at or below $36,900, moving towards the 61.8% Fibonacci expansion at $30,500 is very likely.

BTC/USD Daily Ichimoku Kinko Hyo Chart

To invalidate any near-term bearish outlook, bulls need to close Bitcoin price above the recent swing highs and above the bear flag at or above $45,500.

Ethereum price at a make or break point, failure to hold support could trigger a substantial collapse below $2,000

Ethereum price action is very similar to Bitcoin's current condition – it is inside a bearish continuation pattern. The failure point for Ethereum is a daily close below $2,500. If that occurs, it would confirm a short signal from the breakout below the bearish pennant and also confirm an Ideal Bearish Ichimoku Breakout entry. In that scenario, ETH would likely collapse towards the 100% Fibonacci expansion at $1,825.

ETH/USD Daily Ichimoku Kinko Hyo Chart

If bulls want to invalidate this near-term bearish scenario, then they have one opportunity to do so. The only level preventing Ethereum price from confirming an Ideal Bearish Ichimoku Breakout is the Tenkan-Sen at $2,675. Holding the Tenkan-Sen as support is critical to prevent a broader sell-off.

XRP price likely to retest 2022 if it fails to close above $0.755

XRP price action is in a very undesirable position: inside the Ichimoku Cloud. The Ichimoku Cloud represents pain, misery, volatility, indecision, and whipsaws – it's where trading accounts go to die. XRP teased a likely bullish breakout twice during the week but failed to deliver.

A significant danger zone is up ahead for XRP bulls. By Sunday (March 6, 2022), if XRP fails to close at or above $0.755, it will slide into a new Ideal Bearish Ichimoku Breakout entry. That means the beginning of another downtrend would likely move to a target near the $0.50 to $0.55 value area.

XRP.USD Daily Ichimoku Kinko Hyo Chart

If bulls want to invalidate any near-term bearish outlook, then, at a minimum, they need to close XRP above the Ichimoku Cloud (Senkou Span B). That means a daily close at or above $0.79. Ideally, bulls should shoot for a close around $0.855 to confirm an Ideal Bullish Ichimoku Breakout – but mitigating furhter downside pressure is more important in the interim.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

More from Jonathan Morgan
Share:

Editor's Picks

XRP extends recovery as on-chain activity grows
Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).
Ethereum Price Forecast: ETH continues July uptrend with 20% rise after triggering buy signal
Ethereum (ETH) has gained 3% on Tuesday, extending its July gains above 20% after key on-chain indicators highlighted a resumption of buying activity. The strong performance so far in July comes a few days after ETH triggered the Market Value to Realized Value (MVRV) Buy signal. ETH has been up by roughly 22% since the signal.
Chainlink becomes top 20 best performer, 3 reasons behind the move
Chainlink (LINK) has become the best-performing asset in the top 20 this week, leading every other major cryptocurrency. The cryptocurrency jumped 10.18% to $8.71, its highest level since early June. Three major factors explain the double-digit rise over the past week.
Crypto Today: Bitcoin, Ethereum, XRP extend rebound amid returning institutional capital inflows
Cryptocurrency prices extend a broad recovery, led by Bitcoin (BTC), trading above $66,000 at the time of writing on Tuesday. Ethereum (ETH) remains bullish above $1,940, after logging four straight days of gains. Meanwhile, Ripple (XRP) hovers around $1.13, building on the reclaimed $1.10 critical level.
Bitcoin’s potential recovery in the second half hinges on these 4 catalysts
Bitcoin (BTC) has fallen over 34% in the first half of this year as the King Crypto failed to capitalize on a good semester for risk assets despite the woes from the Iran war.