The cryptocurrency market could be establishing a bottom that will only be noticed in retrospect. Traders may have been experiencing sell-offs and fakeouts all month. The games played could be smart money’s involvement before the market rallies. Bitcoin, Ethereum and XRP could experience more sideways price action before a new rally is confirmed.
Bitcoin price magnet-like price action around $41,300 and $39,700 hints that whales may be trying to accumulate the digital asset. The criteria could fit perfectlky as a Bitcoin Wycoff accumulation phase. Investors should consider a dollar-cost approach at these levels to avoid missing out on a good entry in retrospect. The next target for Bitcoin price lies somewhere in the $36,000 zone if the bulls cannot hold the swing low at 37,701.
BTC./USDT 4-Hour Chart
Invalidation of the Macro Bitcoin triangle lies at $28,000. If $28,000 is breached, traders should have enough steam to push the BTC price as low as $17k resulting in a 40% correction from the current Bitcoin price.
Ethereum price still trades below the $3,000 zone. The ETH price currently trades at $2,850 as the bears have validated last week’s bearish thesis by tapping $2,750 earlier this week.
ETH price has breached the weekly trend line again but now trades above it at $2,850. This is the first sign of the bull rally everyone is hoping for. In addition, the ETH price could be coiling into an ending diagonal pattern on the 8-hour chart. The Relative Strength Index displays bullish divergence in oversold territory, which further confirms that the downtrend could briefly come to a halt. The bullish target is $3,150
ETH/USDT 8-Hour Chart
Ethereum price invalidation is $2,480. If the bears can breach this area, the ETH price uptrend could be void. The bears could confidently aim for $2,200, resulting in a 20% decrease from the current Ethereum price.
XRP price still looks like the most disappointing digital asset in the cryptocurrency market. Today, the ripple price broke through a parallel trend channel as the price has wiped out liquidity under $0.62. A dollar-cost average approach could still benefit XRP maximists aiming for long-term macro targets.
XRP price volume is still falling on the 4-hour chart in a steep decline. Day traders are likely being liquidated, so a spike in price would be unsurprising. Still, the safest invalidation level is now $0.54.
XRP/USDT 8-Hour Chart
XRP macro targets are well above the $3.00 zone, so any discounts in Ripple price are likely to be accompanied by smart money fakeouts. However, If the XRP price breaks $0.54, expect more genuine sell-offs. XRP price could likely fall back to $0.44, resulting in a 35% dip from the current price.