Bitcoin price rose from the range low to nearly tagging the swing high this week. However, the impulsive move reversed and is now heading toward the midway point. Ethereum and Ripple are following in BTC’s footsteps and are expected to head lower.
Bitcoin price at crossroads
Bitcoin price rose 19% from $34,757 to $41,333 on Monday and Tuesday and came very close to hitting the range high at $42,451. However, investors booking profit seem to have played a vital role in stopping this impulsive move. As a result, the bears have taken over BTC and have pushed it 7% lower, slicing through the immediate support level at $39,450.
Now, a rejection at this barrier will result in a downswing to $37,332 or the 50% Fibonacci retracement level at $36,737.
This minor pullback will allow the buyers to recuperate, kick-starting the next leg. This impulsive wave could target the range high at $42,452.
Although unlikely, a dip below the said barrier will push the flagship cryptocurrency toward the support level at $34,800, which does not affect the bullish thesis whatsoever.
On the flip side, a breakdown of $34,800 could invalidate the optimistic scenario and trigger a 10% downswing to the range low at $31,022.
Etheruem Price vies a higher high
Ethereum price formed equal highs at $2,650 as it entered the supply zone, ranging from $2,524 to $2,668. A failure to breach through this barrier led to a 10% sell-off. This correction did not tag the 50% Fibonacci retracement level at $2,321 as ETH set up higher lows.
Although unlikely, the upswing could begin after a retest of $2,321 or $2,178, especially if Bitcoin price gets rejected at $39,450.
Such a move would not affect the bullish thesis.
The bulls will push Ethereum price to produce a decisive close above the supply zone’s upper trend line at $2,668. This development would indicate buyers’ resurgence and open up the path toward the range high at $2,915.
In a highly bullish case, ETH might tag the next resistance area that stretches from $3,438 to $3,570.
On the flip side, a breakdown below the 79% Fibonacci retracement level at $1,977 will invalidate the bullish thesis and kick-start a potential 12% crash to $1,727.
Ripple price awaits a trigger
Ripple price, unlike ETH, is hovering just above the 62% Fibonacci retracement level at $0.821. As mentioned above, if the flagship cryptocurrency tumbles, XRP price is likely to do the same and tag $0.824 or $0.783.
However, the overall structure for BTC, ETH and XRP remain the same – bullish. Therefore, investors can expect the XRP price to rise 13% to $0.969. The confirmation of this upswing will arrive after the remittance token slices through the 50% Fibonacci retracement level at $0.877.
If the buying pressure continues to hold, there is a high chance that XRP price will take a jab at the range high at $1.103.
Invalidation of the bullish thesis will occur if Ripple price shatters the 79% Fibonacci retracement level at $0.745. This move would further invoke a potential12% sell-off to the range low at $0.651.
SOURCES: FXSTREET
