(Akash Girimath – FXStreet)
– Bitcoin price hints at a sweep of Monday’s low at $19,541 before potentially recovering to $21,874 or even $22,693.
– Ethereum price has filled the FVG to the downside at $1,461 and may be poised for a comeback.
– Ripple price seems stuck between an inclined trend line and an overhead resistance level at $0.333.
Bitcoin price shows that the recent sell-off was quickly undone as bulls came to the rescue. This development was well received by altcoins, including Ethereum and Ripple, which have also experienced quick recoveries.
Going forward, market participants need to exercise caution since BTC did not complete its downside objective after the recent nosedive.
Bitcoin price could be ready for a long squeeze
Bitcoin price dropped 4.4% on August 30 and formed a double bottom at the range low at $19,511. This bearish move failed to sweep Monday’s low at $19,541, instead rallied extremely quickly leaving behind inefficiencies.
As BTC hovers around $20,322, market participants can expect another correction but this time comprising a sweep of $19,541. If so, it could be the buy signal to open a long position in anticipation of a mean reversion play that targets the midpoint of the 10% crash at $20,692.
Beyond this, Bitcoin price could target the imbalance, aka fair value gap (FVG) formed at $22,693. This imbalance occurs when the price moves quickly in a single direction without an efficient exchange between buyers and sellers.
If Bitcoin price produces a flip of the range low at $19,511 into a resistance level with a failed recovery attempt, it will invalidate the bullish recovery thesis and trigger a correction to $19,065 and, in some cases, $18,500.
Ethereum price primed for more gains
Ethereum price has wicked down to fill the FVG present at $1,461, following in the footsteps of its big brother BTC after it took a plunge on August 30. Not only was this move efficient, but it also managed to retain the $1,527 to $1,555 support structure.
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As a result, Ethereum price could follow the big crypto’s cue and trigger another rally that could result in a revisit of the range high at $1,722. Due to the Merge upgrade, ETH might extend this run-up to retest the resistance level at $1,730.
Regardless of the bullish outlook, if Ethereum price produces a daily candlestick close below the range low at $1,420, it will invalidate the bullish thesis and trigger a correction to $1,280.
Ripple price needs to assert dominance
Ripple price shows a lack of bullish momentum as it hovers just above a supporting trend line connecting swing lows since June 19. To the upside, meanwhile, XRP price has a ceiling of short-term resistance, extending from $0.331 to $0.334, potentially boxing it in and capping gains.
Since BTC is likely to retrace again and XRP will probably follow suit, investors can expect a sweep of the $0.318 level prior to any bullish move. The recovery from this level or a premature breakout above the aforementioned resistance barrier could trigger a recovery rally in Ripple price to revisit the $0.340 and subsequently the $0.360 hurdles.
If Ripple price produces a daily candlestick close below $0.318, however, without a quick recovery, it will invalidate the bullish thesis and trigger a correction to $0.309.
Read XRP Price Prediction: This bearish continuation pattern could trigger a 70% crash
