• Bitcoin price returns to a price level that could prevent further downside risk.
  • Ethereum price erases weekly losses to bring ETH into positive territory.
  • XRP price moves closer to the critical $0.75 zone, then $1 above that.

Bitcoin price action has generated a significant amount of buying during the early NY trading session, pushing higher by more than 5%. Likewise, Ethereum price has rallied over 24% from the weekly lows. XRP price continues to lag BTC and ETH in performance, but a rally of its own is likely to develop very soon.

Bitcoin price targets a return to $40,000

Bitcoin price is setting up for a significant spike higher - or an aggressive and bearish continuation move. On the daily Ichimoku chart, Bitcoin’s intraday resistance is the Tenkan-Sen at $38,275. Failure to move and close above the Tenkan-Sen on the daily chart could trigger a resumption of selling - this is especially true for today due to the first ‘Fed Day’ of 2022. 

If buyers can rally Bitcoin to a close above the Tenkan-Sen, then the next resistance zone to test is a value area between $40,000 (Kijun-Sen) and $41,000 (61.8% Fibonacci retracement). 

BTC/USD Daily Ichimoku Kinko Hyo Chart

Upside potential beyond $40,000 is likely limited to the 50% Fibonacci retracement at $45,500. Downside risks are limited to the 2022 swing low at $33,000. 

Ethereum price action rallies higher during the Wednesday trading session

Ethereum price is on a roll. It’s hard to believe that ETH was down 18% from the open earlier this week and is now up over 4% - and likely pushing higher. The 24% rally off the weekly lows has likely triggered many short squeezes that have yet to pop. 

The most crucial technical behavior that Ethereum price displayed is a return above the weekly Ichimoku Cloud. The combination of a weekly close above the Cloud and the extreme oversold conditions in the weekly oscillators form a robust base to see Ethereum retest the $4,000 value area. 

ETH/USD Weekly Ichimoku Kinko Hyo Chart

Traders should be cautious despite the current bullish activity, especially today due to ‘Fed Day.’ The US Federal Reserve will share comments and forward guidance regarding future interest rates, tapering, and inflation. Any hint of increased wariness by the Fed could have a bearish effect on Ethereum price and all risk-on markets like cryptocurrencies. 

A weekly close below the bottom of the Cloud at or below $2,300 would invalidate any bullish outlook. 

XRP price to return to $1

XRP price action has found a strong support level near the 50% Fibonacci retracement at $0.64 and the 161.8% Fibonacci retracement at $0.60. This support comes in as XRP has developed highly oversold conditions in the Relative Strength Index, Composite Index, and Optex Bands oscillators.

Perhaps the most critical warning signal that a new bull run could be imminent is the 180-day (180 to 198 days) Gann Cycle of the Inner Year. The 180-day is the second most powerful Inner Year Cycle. Gann wrote that the 180-day cycle has a high probability of establishing necessary support or resistance levels. Additionally, he also warned that reversals often happen at this time cycle.

XRP/USD Daily Ichimoku Kinko Hyo Chart

Bulls should look for a return to test the $1.00 value area if XRP price can close above the 50% Fibonacci retracement at $0.64. Downside pressure remains but is likely limited to the 61.8% Fibonacci retracement and psychological price level at $0.50. 

 

RELATED CONTENT

 

Binance Coin price bound for 15% upswing as bulls make a comeback

Binance Coin sees bulls trading away from the monthly S2 support level at $335 tested twice and bulls jumping on the buying volume to get involved in the price action. Backed by the green ascending trendline, a bullish entry makes sense as the Relative Strength Index (RSI) has just exited oversold territory. As such, sellers do not have much incentive to stay further in their short positions as further gains look limited for now. BNB price thus offers a solid entry point, and bulls are now ready to break above $389, the weekly high and short-term cap that has kept BNB price limited to the upside this week. As bears are being pushed against that level, expect their stops to be run once bulls break above it, which will trigger a massive demand for buying volume and squeeze price action even higher. The monthly S1 does not hold much historical reference, so $452 makes the most sense with the 200-day Simple Moving Average just above as a cap, that needs to be broken to start speaking of an uptrend.Read more

 

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

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

Read full analysis

BTC

ETH

XRP