(Tony M. – FXStreet)
– Bitcoin price falls sharply during the second week of October.
– Ethereum price hints at more decline in the coming days.
– Ripple’s XRP price could produce an uptrend rally before more downslide occurs.
The crypto market descends in freefall fashion. At the current time, jumping into the market for a bounce could lead to painful losses. Key levels have been identified to estimate where the cryptocurrency decline may flatline
Bitcoin price has space to fall
Bitcoin price is currently trading at $19,100. The bears have breached the 21-day Simple Moving Average (SMA) to start the second week of October. Losing support from the key indicator suggests the current 8% decline is only the start of what’s to come.
Bitcoin price has fallen into extremely oversold territory on the Relative Strength Index (RSI). The indicator suggests there will be bounces for countertrend scalpers, but the pumps will likely be short-lived. A pullback into the recently breached moving averages near the $19,300 zone has recently occurred, and the bears produced a strong rejection. If market conditions persist, the $19,000 support level will collapse in the coming days.
Traders may want to consider staying with the downtrend until further notice. BTC price could continue to fall, with key targets at $18,700 and the summer lows at $17,500.
The safest invalidation of the bearish outlook is a break above the September high at $22,800. If the bulls can reconquer this barrier, an additional rally could occur and propose an attempt to take out liquidity above the August high at $25,214. Such a move would result in a 30% increase from the current Bitcoin price.
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In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. – FXStreet Team
Ethereum price falls hard
Ethereum price has fallen 5% since the weekend, bringing the entire market value down 8% since the start of October. On Monday, the bears produced the penny-from-Eiffel-style decline, giving little chance for trapped bulls to relieve their losing positions. Like Bitcoin, the decentralized smart contract was also rejected from the 8-day Exponential Moving Average (EMA).
Ethereum price currently auctions at $1,279. The RSI has also fallen into extremely oversold conditions signaling bearish strength. However, the decline does come under relatively low volume compared to the previous one. Still, the steep nature of the downmove suggests the bears are only halfway near bounce-worthy levels. If market conditions persist, a fall towards $1,220 will occur in the coming days.
This thesis remains bearish so long as the recently established swing low at $1,336 stays unbreached. If the bulls break this level, an additional pump toward $1,362 is likely to occur. Such a move would result in a 7% increase from the current Ethereum price.
In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
Ripple price falls back to $0.51
Ripple’s XRP price is down 10% since rallying to $0.54 over the weekend. The steep decline shows a slight uptick in volume but still is less than the previous uptrend rally. This suggests the bulls are losing steam but may have one more move upward to produce in the coming days.
XRP price currently auctions at $0.49. The digital remittance token has found support from the 21-day SMA and is coiling just underneath the 8-day EMA. The RSI is now back above supportive territory after falling into oversold conditions. There is a hidden bullish divergence signal that shows the current $0.48 swing low as more oversold than the October 3 swing low at $0.44. The $0.04 difference in RSI could create a favorable range for day traders to the scalp. Ultimately, placing a short at the current time would be highly risky for said reasons.
Traders should be on the lookout for a pump back to $0.51 in the coming days. An influx of volume coming into the market without breaching new highs could create favorable conditions for sidelined bears to enter the market. Invalidation of the bullish thesis targeting $0.51 relies on a break of the $0.44 swing low. Conversely, the bearish trade idea demands the swing high at $0.56 remains untagged.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. – FXStreet Team
Read Ripple Price Prediction: XRP at a critical juncture, could trigger a 10% crash
