• Bitcoin price action maintains a crucial support structure, performance lags behind ETH.
  • Ethereum price is poised to close the week with a nearly 12% gain.
  • XRP price congestion could end very soon, resulting in a strong breakout.

Bitcoin price action for the week mixed and indecisive when compared to ETH and the altcoin market. Ethereum price extends its rally from last week’s lows. XRP price looks to catch up with BTC and ETH by experiencing a rally of its own.

Bitcoin stays above $37,250 but underperforms the altcoin market

Bitcoin price has been mostly neutral throughout the week, with a marginal gain from the weekly open. Most importantly, BTC was able to close above the bottom of the Ichimoku Cloud (Senkou Span B). Despite the lackluster performance, the currently weekly candlestick close is enough to confirm last week’s bullish reversal candlestick (bullish hammer pattern).

The oscillators on the weekly chart support continued bullish momentum. The Optex Bands remain in extreme oversold conditions while the Relative Strength Index maintains support at the final oversold level in a bull market at 40. Additionally, the Composite Index is in a perfect position to begin a cross above its moving averages, creating a powerful bull signal when that does occur.

Upside potential going into the weekend is likely limited to the $41,000 to $42,000 value area. The 61.8% Fibonacci retracement, top of the weekly Ichimoku Cloud, 2022 Volume Point Of Control, and weekly Tenkan-Sen sit above Bitcoin between the price ranges of $41,200 and $43,250.

BTC/USD Weekly Ichimoku Kinko Hyo Chart

Any weekly close below the Cloud will invalidate any near-term to medium-term bullish outlook. A prolonged bear market will probably begin in that scenario.

Ethereum price approaches the critical $3,000 level

Ethereum price action throughout the week has been spectacular. Except for some selling pressure on Wednesday, ETH has done nothing but trudge higher and higher. From last week’s low, bulls have pushed Ethereum to a rally exceeding 32%. Furthermore, this weekly candlestick confirms the bullish reversal candlestick pattern from last week (the Dragonfly Doji).

Support against the 61.8% Fibonacci retracement and top of the Ichimoku Cloud (Senkou Span A) likely confirms a floor of support. The next target for bulls is the 50% Fibonacci retracement at $2,900 – but more likely, it is the critical and psychological price level of $3,000.

ETH/USD Weekly Ichimoku Kinko Hyo Chart

Downside risks, however, do remain and are likely limited to the $2,500 support level. Below that, Senkou Span B (bottom of the Ichimoku Cloud) is the next primary support zone at $2,300. All near-term Ethereum price bullish outlooks will be invalidated if a weekly close below the Ichimoku Cloud.

XRP price bullish breakout imminent

XRP price has spent the past eleven trading days inside a constricted trading range between $0.60 and $0.63, with few attempts to move above or below that range. However, the results of this consolidation have created a long opportunity on XRP’s Point and Figure Chart.

The hypothetical long trade setup is a buy stop order at $0.65, a stop loss at $0.61, and a profit target at $0.80. The entry is based on the breakout above a triple-top pattern that would develop at $0.64. It could also be interpreted as a split quadruple-top breakout.

XRP/USDT $0.01/3-box Reversal Point and Figure Chart

The long entry represents a 3.75:1 reward/risk with an implied profit target of nearly 24% from the entry. Because trades rarely reach their full profit target potential, a two to three-box trailing stop would help protect any implied profit. The XRP price trade is invalidated if the current O-column moves to $0.57.

 

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

Why LUNA traders do not have to be in the market all the time

Why LUNA traders do not have to be in the market all the time

Terra (LUNA) price action has slipped below a critical level outlined a few days ago. As price action moves start to get smaller, a big move is set to happen, but it is very cloudy to see where that move will be going.

More Terra News

SEC vs. Ripple case, two key decisions awaited by XRP holders

SEC vs. Ripple case, two key decisions awaited by XRP holders

XRP holders are awaiting key decisions in the SEC vs. Ripple case. Experts believe judge Sarah Netburn could rule on the two key decisions in the lawsuit against payment giant Ripple. 

More Ripple News

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC’s purchase of carbon credits through KlimaDAO partnership represented 104,794 tonnes of greenhouse gasses, equivalent to the Ethereum scaling solution’s debt since 2019. Carbon neutrality has fueled a bullish sentiment among traders and 

More Polygon News

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Shiba Inu price may have bottomed but this can only be confirmed if the current rally persists. Traders should be aware of several factors. Shiba Inu price has suddenly changed as the bulls have printed a significantly large bullish engulfing candle on the daily chart. 

More Shiba Inu 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

BTC

ETH

XRP