(Akash Girimath – FXStreet)
– Bitcoin price approaches a support confluence at $21,710, a breakdown of which, could lead to a 12% crash.
– Ethereum price is retracing after retesting the $1,700 hurdle and is likely to continue doing that until BTC establishes a directional bias.
– Ripple price is hovering above the $0.340 level, a significant barrier that could make or break the altcoin.
Bitcoin price shows a lack of bullish momentum as it bounces off the previously created range. This development could result in a bearish outlook if the immediate support cluster is breached. In such a case, Ethereum and Ripple price are likely to follow suit and drop.
Bitcoin price at last line of defense
Bitcoin price produced a four-hour candlestick close below the 200-week SMA, indicating a weakness among buyers. However, bulls have another chance to recover as BTC hovers around the 30-day Exponential Moving Average (EMA) at $22,010 and above the 100 four-hour Simple Moving Average (SMA) at $21,562.
If BTC squanders this opportunity and produces a daily candlestick close below $21,710, it will invalidate any possibility of a bullish outcome. In such a case, market participants can expect the Bitcoin price to drop 10% and retest the range’s midpoint at $19,657.
In some cases, BTC might even dip into the liquidity pool, extending from $18,638 to $19,286. Here, buyers can choose to step in and attempt another run-up or wait till market makers push the big crypto to sweep the range low at $17,605.
On the other hand, if the Bitcoin price bounces off the $21,710 support confluence, there is a good chance the June 13 rally will continue. Under these circumstances, BTC could retest the $25,000 psychological level.
Advertisement
Ethereum price ready for more retracement
Ethereum price came close to tagging the $1,700 hurdle on July 24 but fell short of momentum. As a result, ETH is currently hanging by an edge off the $1,543 support level. A successful flip of the aforementioned level into a resistance barrier could trigger an 8% drop to flip the price inefficiency at $1,383.
In some cases, Ethereum price might retest the range high at $1,284. While this downswing might seem bearish, it is a bullish retracement and is likely to trigger a bounce from ETH price.
While things are looking up for Ethereum price, a daily candlestick close below the $1,284 support level will invalidate the bullish outlook. In such a case, ETH could revisit the $1,080 support level.
Ripple price at an inflection point
Ripple price has retraced its moves seen since June 18, indicating the lack of strength among buyers. This move has not only undone the gains but is currently threatening to go lower if the support confluence at $0.340 is breached.
In the case of a breakdown, Ripple price could revisit the liquidity pool, extending from $0.301 to $0.311.
Regardless of the bearish outlook, if Bitcoin price recovers, Ripple price will follow suit. In such a case, a bounce off the $0.340 level is likely to propel the XRP price to $0.380. If the momentum is high, a sweep of the double top at $0.387 seems plausible.
Read Will the Fed prevent BTC price from reaching $28K? – Five things to know in Bitcoin this week
