• Bitcoin price lost nearly 19% of its value in April, but a recovery may be starting.
  • Ethereum price action continues to chop and whipsaw investors and traders alike.
  • XRP price hits an all-time low in a critical oscillator measurement.

Bitcoin price ends April on a bearish note, with concerns that further downside pressure may continue. Ethereum price continues to vex bulls and bears alike as ETH maintains a tight trading range. XRP price struggle to hold the $0.60 value area.

Bitcoin price action displays several potential bullish reversal signals

Bitcoin price action begins May after a brutal sell-off in April. Historically, April is one of the best-performing months for Bitcoin. April of 2022, however, goes down as the worst-performing April in Bitcoin’s history and the worst performing month since May 2021.

Several warning signs now exist for bears. First, the most powerful standard bullish reversal pattern, the falling wedge, is now present on the daily Bitcoin price chart. The falling wedge has a high positive expectancy rate of reversing price action into a broad trend change or, at the very least, a powerful corrective move higher.

BTC/USD Daily Ichiumoku Kinko Hyo Chart

The second major reversal signal is the bullish divergence between the Composite Index and price action. Bitcoin price has created a series of lower lows, but the Composite Index has formed higher lows. Additionally, the Composite Index has crossed above both its slow and fast-moving averages.

Any recovery for Bitcoin price may be limited to the bottom of the Ichimoku Cloud (Senkou Span B) at $41,300. Any further bullish outlook will likely be invalidated if Bitcoin drops below $36,000.

Ethereum price frustrates bulls and bears, ETH indecisive

Ethereum price action, from an Ichimoku perspective, is in the worst possible place on the daily chart: inside the Ichimoku Cloud. The Ichimoku Cloud represents indecision, volatility, whipsaws, and fakeouts. It is the place where trading accounts go to die. For eleven consecutive weeks, ETH has had contact with the inside of the Cloud.

A clear breakout, bullish or bearish, is needed to establish a future trend. For bears, the path to an Ideal Bearish Ichimoku Breakout is much easier – Ethereum price only needs to close at or below $2,545. From there, ETH may not find support until the 50% Fibonacci retracement at $1,770.

ETH/USD Weekly Ichimoku Kinko Hyo Chart

For bulls to signal a clear and decisive new uptrend, a close above the Ichimoku Cloud – while positive – is not sufficient. To complete an Ideal Bullish Ichimoku Breakout on the weekly chart, Ethereum price must close at or above $4,750 – or just shy of the prior all-time high.

XRP price is at the mercy of the broader market

XRP price continues to underperform its peers and is increasingly at risk of a steeper decline. The current support zone at $0.61 has formed a double-bottom with the prior $0.60 traded range in January 2022. The resulting volume has developed the second-largest high volume node in the 2022 Volume Profile, creating a strong support zone.

If support holds and XRP price is able to push higher, gains may be limited to the $0.80 value area. $0.80 contains the bottom of the daily Ichimoku Cloud (Senkou Span B) and the 2022 Volume Point Of Control. A bounce from the $0.60 level is increasingly likely as the Optex Bands oscillator has hit new all-time lows, indicating an extreme oversold condition.

XRP/USD Daily Ichimoku Kinko Hyo Chart

Failure to hold $0.60 could generate a flash crash of XRP price to the 61.8% Fibonacci retracement at the critical $0.50 value area. 


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 Join Telegram

Recommended content

Recommended Content

Editors’ Picks

What Shiba Inu price needs to do to trigger a breakout

What Shiba Inu price needs to do to trigger a breakout

Shiba Inu (SHIB) price is seeing a bit of a pullback and could drop even further in search of support after bulls failed to keep their act together during the recent rally and began grasping at early profits. 

More Shiba Inu News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

More Ripple News

Is Cardano’s Vasil hard fork a ‘sell the news’ event?

Is Cardano’s Vasil hard fork a ‘sell the news’ event?

Cardano price looks like it will face a massive amount of selling pressure that could lead to choppy price action. However, the fundamental side of things looks good for ADA considering the recent update regarding the highly anticipated Vasil hard fork.

More Cardano News

New sources affirm USDD is on a path to collapse like Terra’s UST

New sources affirm USDD is on a path to collapse like Terra’s UST

Tron launched its stablecoin USDD in May, at the same time as Terra’s sister tokens LUNC (formerly LUNA) and UST were imploding. The stablecoin recently detached from its $1 peg, sparking fears of a crash. 

More Terra News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis