Share:
  • Bitcoin price breaks out of the bull flag.
  • Ethereum price makes new all-time highs, upside potential may be limited.
  • XRP price action is ready to pop – a massive spike higher is likely.

Bitcoin price breaks out above the bull flag and continues higher. Ethereum price cracks above $4,500 and makes new all-time highs - $5,000 value area is insight. As a result, XRP price is positioned for one of the most bullish patterns in Point and Figure analysis.

Bitcoin price extends gains above the bull flag, must keep momentum or risks creating a fake-out

Bitcoin price action has been very bullish during the early US trading session, spiking over 3% higher during the day. The breakout comes after clear support against the daily Tenkan-Sen and Kijun-Sen. The past three trade days have all traded lower, but there has been clear buying participation against those two Ichimoku levels. As a result, Bitcoin is currently trading at a ten-day high.

BTC/USD Daily Ichimoku Chart

Some caution should be maintained, however. While the oscillators show good positioning for a sustained rally of Bitcoin price, the Composite Index may be hinting at some weakness. Specifically, if the Composite Index creates a high above the October 20th peak, but Bitcoin fails to produce a new all-time high, some bearish divergence could limit Bitcoin’s upside potential.

Ethereum price pushes higher, gains of 4% and more ahead

Ethereum price on the $50/3-box Point and Figure chart shows a parabolic rise could be coming. The previous column of Xs was the column that saw Ethereum print the prior all-time high after the initial rejection in mid-October. The current column of Xs is the first extension after the pullback. The theoretical trade setup is a buy limit order at $4,550 with a stop loss at $4,350 and a profit target at $5,550. The implied profit target projection is based on the Vertical Profit Target Method in Point and Figure analysis.

ETH/USD $50/3-box Reversal Point and Figure Chart

Bulls should be aware that Ethereum could be positioned for a bull-trap. However unlikely it may seem, a bull trap would occur if Ethereum returns to $4,150. From there, the buyers may return to support Ethereum price between the $3,400 and $3,800 value areas.

XRP price is likely to outperform Bitcoin and Ethereum if it can crack the nearby resistance

XRP price has more bullish breakout potential and percentage gains ahead than Bitcoin or Ethereum. The pent-up demand and indecision could very well be coming to a close. XRP has a triple-top developing on its Point and Figure chart. That creates an ideal hypothetical long trade scenario with a buy stop at $1.18, a stop loss at $1.10, and a profit target at $1.50. However, the $1.50 profit target may be too conservative, but it is the threshold measured on a breakout above the triple-top.

XRP/USD $0.02/3-box Reversal Point and Figure Chart

While invalidation of this bullish setup is not very likely – especially given the firm buying support XRP price continues to enjoy – there are risks. Any daily close below the $0.98 to $1.00 value areas could trigger longs to sell and bears to begin shorting.

 

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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

XRP price loses its 25% month-long uptrend as Ripple CTO calls buyback proposal a “scam”

XRP price loses its 25% month-long uptrend as Ripple CTO calls buyback proposal a “scam”

XRP price recovery over the month of January has been rather dull in comparison to the rest of the large-cap cryptocurrencies, such as Ethereum and Solana.

More Ripple News

Here is why falling bond prices this Monday are of importance for the Polygon price later this week

Here is why falling bond prices this Monday are of importance for the Polygon price later this week

Polygon (MATIC) price tanked slightly around the US opening bell as markets are still pricing in the turn of events from past Friday on the back of the US jobs report. 

More Polygon News

Will Bitcoin bulls remain in control of BTC price after another volatility-filled week?

Will Bitcoin bulls remain in control of BTC price after another volatility-filled week?

Bitcoin price witnessed a massive rally in January 2023, and sustained above the $23,000 level while facing macroeconomic headwinds. Another week of catalysts could test the resolve of bulls as BTC price remains firmly the two-year lows of the bear market at $22,800. 

More Bitcoin News

Can the bond market sell-off negatively impact Binance Coin price?

Can the bond market sell-off negatively impact Binance Coin price?

Binance Coin (BNB) price must see quite a few crypto traders puzzled this morning when looking at the charts. With several cryptocurrencies slipping lower, the risk is increasing that cryptocurrencies are lagging on the overall market reaction.

More Binance Coin News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP