(Akash Girimath – FXStreet)
– Bitcoin price has crashed to the August month’s low after dropping 9.7% in roughly 24 hours.
– Ethereum price broke below the $1,355 to $1,440 support area and tagged the $1,280 support level.
– Ripple price faced another rejection at the $0.381 hurdle, signaling the persistence of sellers at that level.
Bitcoin price has single-handedly crashed the entire crypto market as it tumbled below a crucial support level. As of this writing, BTC is still yet to find a stable support level and hatch a recovery plan. Altcoins, including Ethereum and Ripple, are already working on bouncing back.
Bitcoin price remains indecisive
Bitcoin price has swept the previous weekly low at $18,500 and is very close to collecting the sell-stop liquidity below the June 18 swing low at $17,593. Regardless, the recent sell-off for BTC is an opportunity for patient investors.
Investors can expect BTC to trigger a run-up to $19,405, which is the weekly open. However, a flip of $19,539 could catalyze Bitcoin price to retest the $20,737 hurdle, clearing which could result in a swift move to $25,169.
On the other hand, if Bitcoin price flips the $18,293 support level into a resistance barrier, it will invalidate the bullish outlook and trigger a crash to $15,550.
Ethereum price ready to recover losses
Ethereum price created a string of higher lows since August 29, but after the third swing low at $1,406, the sellers took over, crashing the altcoin. As a result, ETH dropped 17% in three days, which has sliced through the $1,355 to $1,440 support area.
As Ethereum price currently trades at $1,280, investors can expect ETH to kick-start a recovery rally, provided Bitcoin price supports the narrative. In such a case, Ethereum price could bounce higher to retest the monthly open at $1,553.
Clearing this would push ETH to $1,730, which is a high timeframe resistance level.
While things are looking bearish at the moment, the recent drop in Ethereum price could be a good level to accumulate, especially when looking at it from a long-term perspective. However, if ETH produces a daily candlestick close below $1,280, it will invalidate the bullish outlook and potentially crash to $1,080.
Ripple price back to the pavilion
Ripple price retested the $0.381 resistance level after a 20% rally, but the sellers at this level, combined with the deteriorating market structure, pushed the XRP price lower. As a result, holders experienced an 11% drawdown to where the remittance token currently trades at $0.340.
Going forward, investors can expect XRP price to stabilize between the $0.331 to $0.360 barrier. Forming a base here will serve as a launch for the next leg-up that will attempt to break the $0.381 ceiling.
Doing this will allow Ripple price to aim for the $0.439 resistance level.
However, if Ripple price breaks below the $0.331 support floor and flips it into a resistance level, it will invalidate the bullish thesis. This development could see XRP price revisit the $.0309 barrier.