(Akash Girimath – FXStreet)
– Bitcoin price is likely to rally higher and lure investors in for a potential long squeeze.
– Ethereum price looks ready for a quick run-up from a technical perspective.
– Ripple price consolidates in a deep-discount mode, hinting at a minor uptrend.
Bitcoin price has been ranging since June 18, but rumors of insolvency have been spreading on multiple popular platforms in the industry. KuCoin, the fifth-largest cryptocurrency exchange in the world is at the center of bankruptcy rumors.
A popular Twitter user with the screen name “Otteroooo” urged users to withdraw their funds from KuCoin.
Also Read KuCoin Review: Is it safe to use in 2022?
The same user has also sounded the insolvency rumors for BlockFi and Celsius well before major media outlets picked up the news. Another popular Twitter user “beetle” also tweeted that “kucoin labeled wallets went from $1.8b to $10m in a day.”
The same user has also sounded the insolvency rumors for BlockFi and Celsius well before major media outlets picked up the news. Another popular Twitter user “beetle” also tweeted that “kucoin labeled wallets went from $1.8b to $10m in a day.”
Vauld, popular Indian crypto lend and borrow platform that recently expanded into exchange services also halted its deposits and withdrawals as of July. The company stated in its latest corporate statement that it had experienced a “significant amount of customer withdrawals in excess of a $197.7 m since 12 June 2022…”
The statement further added that,
Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.
With another potential collapse around the corner, the overall outlook for Bitcoin price and hence, Ethereum, Ripple and other altcoins are bearish. Despite the bearish backdrop, there might be attempts to trigger quick yet short-lived rallies.
Bitcoin price remains directionless
Bitcoin price is trading well below its second-quarter open at $19,943 and seems ready for a sweep of the bottom of the range at $18,600. Assuming this move occurs, investors can expect BTC to attempt to follow this move with a rally and retest of the range high at $20,910.
This move, while temporarily bullish, will provide investors with an opportunity to short the Bitcoin price. The resulting downswing is likely to sweep the June 18 swing low at $17,578.
On the other hand, if Bitcoin price produces a daily candlestick close above $21,705, it will indicate that the recovery is strong and invalidate the bearish outlook. Such a development will see BTC potentially climb to the next level of interest at $22,837.
Ethereum price remains optimistic
Ethereum price shows a much higher chance of rallying as compared to Bitcoin price for two reasons. The four-hour demand zone, extending from $938 to $1,008 serves as a support level with the outlook favoring a move up to the equal highs formed at the range high at $1,283.
From a market makers’ perspective, a move to the upside also makes more sense as compared to a downswing, which lacks liquidity. Therefore, investors can expect Ethereum price to rally by 25%.
While things are looking up for Ethereum price, a four-hour candlestick close below $878 will invalidate the bullish thesis and crash ETH to the $700 psychological level.
Ripple price reveals a potential bullish move
Ripple price is trading in a deep-discount mode, extending from $0.307 to $0.324, indicating that a bullish reversal is likely. The equal highs formed around the range high at $0.386 add credence to the possibility of an uptrend evolving.
Since BTC also shows an affinity to climb higher in the short-term, and it influences the wider market, other altcoins, including ETH and XRP are likely to follow suit and also trend higher. In terms of Ripple price, investors should be prepared for a 22% ascent.
The bullish outlooks for Ripple price and Ethereum, are based on the assumption that BTC leads the way. If Bitcoin suffers a reversal, however, things could get ugly for all other altcoins too.
If XRP price produces a four-hour candlestick close below $0.286, it will create a lower low and invalidate the bullish thesis.