- Bitcoin price hits and maintains its primary support zone while the threshold for a bullish breakout decreases.
- Ethereum price maintains bullish structure despite saber-rattling and geopolitical unknowns.
- XRP develops a bull flag before returning to the $1.00 price range.
Bitcoin price action, like the rest of the cryptocurrency market, was hammered south on Thursday due to increased fears about a possible war between Russia and Ukraine. Ethereum price respects significant resistance and support levels, relatively unchanged price action behavior. Like BTC and ETH, XRP is relatively unchanged and has maintained its primary near-term support zone – while also developing a robust bullish continuation pattern.
Bitcoin price prepares for a new bull market above$43,850
Bitcoin price action will likely surprise a large number of crypto participants. The drop on Thursday has led to an inordinate amount of pundits and social media declaring any hope for the cryptocurrency market returning to a bull run is null and void. However, the joke may be on them.
By Saturday, Bitcoin only needs to accomplish a daily close above $42,500 to complete an Ideal Bullish Ichimoku Breakout. Of course, that is contingent upon Bitcoin maintaining the critical support level it just tested in the $40,000 value area. But given hidden bullish divergence between the Optex Bands and the price chart, it is very likely Bitcoin price will see a gradual rise to its bullish breakout entry zone.
BTC/USD Daily Ichimoku Kinko Hyo Chart
Bulls only need to get nervous if there is a daily close that puts the Chikou Span below the candlesticks and in open space. For that to occur, Bitcoin price needs a daily close below $36,600. In that scenario, Bitcoin would likely drop below the 2022 lows to test the $30,000 price range.
Ethereum price returns to $2,900 support and finds buyers
Ethereum price action for this week has been chiefly par for the course. The upside potential was limited by a powerful resistance cluster between $3,000 and $3,200, while downside risks were limited to a support cluster between $2,900 and $3,000.
Bulls have been strong in keeping Ethereum price away from a major sell-off but have been weak with their conviction in pushing ETH higher.
As Ethereum price shifts into the weekend, the upside potential is likely limited to a range between $3,100 and $3,300. The 2021 Volume Point Of Control, Tenkan-Sen, Kijun-Sen, 38.2% Fibonacci retracement, top of the Ichimoku Cloud (Senkou Span B), and the bottom of a prior bull flag all exist with that value area. It is the single most challenging range for Ethereum to move above.
ETH/USD Daily Ichimoku Kinko Hyo Chart
On the bearish side of the trade, the 50% Fibonacci retracement at $2,900 is the critical zone to watch. However, bears may test one more Ichimoku support level: the Kijun-Sen at $2,725. Failure to hold Ethereum price to a daily close above the Kijun-Sen could trigger a massive bearish continuation move towards the $2,000 price level.
XRP price forms bull flag, indicating a bullish continuation move and breakout towards $1.00 is imminent
XRP price action consolidates between the $0.75 and $0.87 price levels. Most importantly, XRP has continued to trade near the critical bullish breakout level of $0.80.
Hidden bullish divergence has developed between the price chart and the Composite Index. Moreover, that same divergence has now formed on the Optex Bands.
XRP needs to maintain a close above the Ichimoku Cloud (Senkou Span B) at $0.78. Failure to do so means it could move as low as the bottom of the Cloud (Senkou Span A) at $0.70. On the other hand, if bulls can push XRP to a daily close above the prior swing high near $0.85, that should trigger sidelined buyers to enter before XRP hits $1.00.
XRP/USD Daily Ichimoku Kinko Hyo Chart
Downside risks are likely limited to the 2022 lows in the $0.60 price range.