• Bitcoin price approaches the lowest daily close in almost 18 months.
  • Ethereum price, likewise, approaches the lowest close it has seen in nearly 10 months.
  • XRP price is on the path to $0.25

Bitcoin price shows bears are attempting to put BTC into a close last seen in early January 2021. Ethereum price threatens to create a new lowest 2022 and 10-month close. XRP price action tested the $0.50 as resistance but could not break it.

Bitcoin price continues to slide south

Bitcoin price action during the NY trading session has been decidedly weak. As risk-on markets across the globe show renewed selling, BTC has followed suit. As a result, nearly all of the gains made from last Friday's (May 13) close have been eliminated. As a result, bears could push BTC to the lowest close since January 1, 2021.

The only immediate support structure for Bitcoin on the daily chart is the Tenkan-Sen – which has a marked slope down. Bulls have made several attempts to maintain a daily close above the Tenkan-Sen over the past five days, but results have been mixed.

If bulls want to mitigate any further near-term bearish price action, Bitcoin price will need to close at or above the high volume node in the 2022 Volume Profile at $31,700. If that scenario comes true, then the path to $40,000 becomes much easier because the volume profile is between $31,700 and $40,000.

BTC/USD Daily Ichimoku Kinko Hyo Chart

Downside risks for Bitcoin price may be substantial. Below the 2021 and 2022 lows is a near-total absence of traded price action. However, the next high-volume node does not appear until the 2020 Volume Profile near $22.500. And below that, $19,000. Even further is the 2020 Volume Point of Control at $10,000.

A chart worth looking at now is the Crypto Total Market Cap from TradingView, which measures all cryptocurrencies' total market cap value. Note the massive gap in the 2021 Volume Profile between $1.29 Trillion and the next high volume node at $1 Trillion. So another flash crash may be just around the corner.

Crypto Total Market Cap Daily Ichimoku Kinko Hyo Chart

Ethereum price action has wiped out all of the gains from the weekend

Ethereum price follows Bitcoin and the broader market on another run to the basement. At the time of writing, ETH is down over 5% and is on track to print a bearish engulfing candlestick on the daily chart. The bearish engulfing candlestick and rejection against the daily Tenkan-Sen give short-sellers a powerful reason to add to their short positions.

There is no more Ichimoku support on the daily or weekly timeframes for Ethereum price. The next major support level for ETH doesn’t appear until the $1,200 - $1,400 value area, which contains the 38.2% Fibonacci retracement (1,420), the 2021 Volume Point of Control ($1,270), and the 361.8% Fibonacci expansion ($1,202).

ETH/USD Daily Ichimoku Kinko Hyo Chart

Upside potential is unlikely, but if a fakeout south does occur, then upside momentum will likely be limited to the daily Kijun-Sen near $2,300.

XRP price likely to return to $0.25

XRP price has spent the past week making several attempts to recover the losses it experienced last week and return above one of the most powerful resistance levels on its price chart: the 2021 Volume Point of Control at $0.45. Unfortunately, bulls have been unable or unwilling to crack that resistance.

Bears, smelling blood in the water and sensing broad and continued weakness, have piled into new short positions against crypto and XRP. As a result, XRP price faces another nearly 50% wipe in value as it approaches the 2020 Volume Point of Control at $0.25, which is the final near-term support for XRP. After that, however, buyers may step in to halt further downside movement around the $0.30 price range. Both the 2020 and 2021 Volume Profiles have high volume nodes a the $0.30 level.

XRP/USD Daily Ichimoku Kinko Hyo Chart

Any upside potential, unlikely as it is, would likely be limited to the daily Kijun-Sen and the bottom of the prior descending triangle in the $0.55 value area.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why XTZ traders need to be glued to the screen for next 48 hours

Why XTZ traders need to be glued to the screen for next 48 hours

Tezos (XTZ) price action has seen its winnings evaporate in late hours trading on Wednesday after the Fed minutes came out.

More Tezos News

Polygon’s MATIC forfeits on key-level and must go in search of ammunition

Polygon’s MATIC forfeits on key-level and must go in search of ammunition

Polygon (MATIC) is trading like one of the more popular first-person shooter games this week, such as Medal of Honor or Quake – and personally my own favorite.

More Polygon News

COIN bleeds as Coinbase slammed with insider trading allegations on 25% of new listings

COIN bleeds as Coinbase slammed with insider trading allegations on 25% of new listings

Australian researchers have gathered evidence of systematic insider trading on Coinbase.

More Cryptocurrencies News

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price is on the verge of triggering another run-up, but it needs to allow investors who partook in the previous rally to book profits.

More Shiba Inu News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP