Briefly-
- Bitcoin slows down the latest drop after retesting the parallel channel’s bottom trend line.
- Ethereum price displays an ascending channel after ETH breached the support cluster at $3,000 – $2,800.
- XRP price gathers southward liquidity, reading for a move to explore the $0.733 mark.
Bitcoin (BTC) appears to steady near a significant support floor that it’s battle-tested two times within the past three months. Buying momentum resurgence will likely push BTC and altcoins higher. While publishing this content, the global crypto market value stood at $1.73 trillion, gaining 0.94% within the past day.
Bitcoin Readies for Uptrends
Bitcoin price has traversed an ascending parallel channel within the last three months. The pattern emerges when you use trend lines to connect BTC’s three higher peaks and higher lows. The previous times (two) the crypto hit the bottom trend line, it witnessed a swift recovery that triggered a 40% upsurge.
The primary feature of these bottom trend-line hits is that the candle closed beyond the 200 3-day SMA (Simple Moving Average). Nevertheless, the recent retest gradually pierced the mentioned SMA, showing buyers weakening.
Meanwhile, a bullish engulfing candle forming on Bitcoin’s 3-fay chart would show buyers still in control. Regardless of this bullish gesture, the crypto should break past the 200 3-day Simple Moving Average and hit the daily supply territory, stretching between $42,153 and $43,981.
Bitcoin’s upside will likely limit near the mentioned supply region, translating to a 9% upward move.
Though BTC’s bullish narrative appears logical, a selling momentum resurgence that forms a family candle closing beneath the support floor at $34,752 will annul the ascending channel and BTC’s bullish thesis.
ETH Price Paints a New Picture
Ethereum had its price breaching the long-lasting support cluster, stretching between $2,800 and $3,000. That highlighted a selling pressure spike in the near term. Though such developments may mean short-term bearishness, plotting a tend-line to join the three higher lows and two higher highs showcases an ascending channel.
While the recent rebound from the bottom trend line is impressive, it should conquer the 100-day Simple Moving Average at $2,908, then the 50-day Simple Moving Average near $3,061 to extend the ascent. Beyond that, the altcoin needs to overturn the 2022 Volume POC of around $3,129 into the support floor. The level saw most ETH trades in 2022.
Satisfying that will be crucial in catalyzing the upward action towards the 200-day Simple Moving Average at $3,472. Such an ascent would mean a 21% upsurge from ETH’s current price of $2,855. The level will likely cap the token’s upside.
Surged downside strength will see the altcoin navigating downtrends. Producing a daily candle closing beneath the $2,541 weekly support floor will form a lower low before canceling the bullish narrative.
XRP Expulses Sell-Side Momentum
Ripple witnessed its price plunging beneath the $0.601 support barrier to gather sell-stops created late in January. That move purged downward momentum, suggesting potential reversals in the upcoming days. For now, the remittance seems poised for upside moves.
Also read: Loopring Bears Dominate Following Double Top, TVL Drops 30% in 2 Weeks
According to the chart, XRP’s recovery appears strong and eyes a reversal towards the mean, the 50% retracement mark of $0.733, in this case. Moreover, the alt has a higher probability of forming a local high at this barrier.
Supporting this narrative is the 2022 volume POC at $0.768. Therefore, investors can consider taking profits within the $0.733 – $0.768 range.
However, XRP depends on Bitcoin’s price trends. A sudden dip in the bellwether crypto might see the remittance token resorting to plummets. A daily candle closing beneath the support area at $0.601 will form a lower low. Such developments will cancel Ripple’s bullish thesis. XRP can plummet towards the foothold of $0.548 to rethink its directional trend.
Though the crypto market presents recovery signals, the upside path seems plagued with hurdles. Market players may wait for the assets to reveal their directional intentions before interacting with the marketplace.
What are your thoughts about the current upticks in the crypto market? Comment below.
