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Top 3 Price Prediction: Crypto market enters a decoupling phase as Bitcoin, Ethereum and XRP price diverge

  • Bitcoin price could be bottoming out. 
  • Ethereum price targets $1500.
  • XRP price distortion hints at another sell-off.

Bitcoin, Ethereum and XRP price are showing different signals, warranting the idea of a crypto season ideal for intraday traders.

Bitcoin price bottom is near

Bitcoin price is following the technicals forecasted in the last bearish thesis. Ultimately, traders should consider a truncated wave down to fool overly bearish speculators in the market. The steep nature of the slope before a breach of the lows could be hinting at Smart Money's desire to finally end the accumulation phase at the $28,000 zone before sending the BTC price into the $35,000 levels. 

Bitcoin price consolidation also signals Smart Money involvement as the sideways action takes place under relatively low volume. The objective of market makers is always subtle and barely detectable, leaving little to no evidence of their true intentions. A sharp move could be hours away for the Bitcoin price, which will leave traders and investors with the 2nd best option for joining the trend later with less profitable returns.

Invalidation of the bearish downtrend is a breach at $26,500. If the bears can breach this level, a break into 424,500 will be the next target, resulting in a 15% dip from the current Bitcoin price.

tm/btc/5/20/22

BTC/USDT 3-Hour Chart

Ethereum price Positions for a new low

Ethereum price warrants the need for traders to pull back and allow the technicals to manifest. The ETH price is 12% above liquidity levels established in July 2021. The idea that |Smart Money won't grab the orders at these levels without trying to shake out weak hands and maximize their positions at this point is a questionable assumption.

Ethereum price will likely grab liquidity under $1500, but new lows could be established. The crypto market could be approaching a decoupling phase where investors jump ship from the Ethereum foundation and convert their assets into Bitcoin or XRP. Time will tell.

Invalidation of the bearish downtrend is a breach at $2950. If the bulls breach his level, a $4,000 target could be on the cards resulting in a 100% increase from the current Ethereum price.

TM/ETH/5/20/22

ETH/USDT 3-Day Chart

XRP price is severely diverging. 

XRP price seems to be abandoning the rule that all cryptos move in unison. The XRP price shows distinct differences compared to Ethereum and Bitcoin prices. The deep retracement established this week into the highs at $0.43 warrants the idea of an extended decline in the near future.

XRP price has targets of $0.35 and $0.30. Due to the newly presented decorrelating evidence, it is not advisable to depend on Bitcoin for a definitive market bottom. A significant news event could be coming very soon regarding the XRP and SEC, which could be the catalyst to fully set XRP apart from all other cryptos in the space.

Invalidation of the bearish thesis is a breach at $0.45. If the bulls breach this level, a rally towards $0.31 could occur, resulting in a 25% increase from the current price.

TM/XRP/5/20/22

XRP/USDT 15 Min Chart

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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