- Bitcoin price is moving back inside the Ichimoku Cloud, dampening a large amount of bearish momentum.
- Ethereum price is printing a weekly candlestick that clearly shows an impending bullish push.
- The price of XRP is relatively unchanged despite the market-wide volatility.
Bitcoin’s price action is the barometer of the overall cryptocurrency market, and its return to the Ichimoku cloud is positive. Likewise, Ethereum’s price recovered nearly 20% from Thursday’s crash lows, trapping a large number of short sellers in the process. XRP price is expected to close the week lower, but in a prior value zone.
Bitcoin price is trying to develop support
Bitcoin price action saw some of the most volatile and wild activity in recent months yesterday. The most critical condition for Bitcoin to maintain, ahead of the weekend, is to stay above the inside of the Ichimoku Cloud. That daily closes must be greater than Senkou Span A.
Despite fears regarding Russia’s invasion of Ukraine, Bitcoin has developed very bullish technical levels. For example, last week the threshold at which Bitcoin needed to close to confirm an Ideal Bull Ichimoku breakout was at the $49,500 price level. This week, that threshold has dropped significantly to $42,600.
Graphique quotidien Ichimoku Kinko Hyo BTC / USD
However, downside risks remain, and if there is a daily close at or below $36,800, then an ideal bearish confirmed Ichimoku breakout would occur. As a result, Bitcoin price could drop below the $30,000 price level in this scenario.
Ethereum Price Traps Traders, Short Sellers Entering Maximum Pain Zone
Ethereum price certainly looked like a prime short selling opportunity at the start of the week. The questionable strength of the $2,500 support level attracted a large number of new short sellers.
The price action resulting from Thursday’s selloff generated a massive 20% rally that extended into Friday’s session. Traders are trying to push Ethereum price to a close above the Ichimoku Cloud, where ETH opened the current weekly candlestick.
If traders complete a close above the Ichimoku Cloud, Ethereum price will likely target the next level of resistance, the weekly Tenkan-Sen at $3,700. However, downside risks remain – this is especially true with the average volatility over the weekend and the coinciding Russian invasion.
Graphique hebdomadaire Ichimoku Kinko Hyo ETH / USD
A close below the weekly Ichimoku cloud at $2,325 or lower would complete an ideal bearish breakout of Ichimoku on the weekly chart – this would likely trigger a quick crash down to the $1,800 value zone, invalidating any perspective short-term bullish.
XRP Price Rebounded Over 15% From Thursday Selloff, Buy Still Down For The Week
XRP price is set to close the week between 4% and 6% lower from the open, but still within the range of the previous week’s open. Ripple opened last week at $0.76 and could close this week near $0.75 – a psychological high. Overall, relatively unchanged.
The path to bullish conditions and a bullish breakout remains difficult for the XRP price. To confirm a bullish breakout within the Ichimoku system, bulls would need to push XRP to close above all of these resistance levels:
- The weekly Kijun-Sen at $0.98.
- 2021 Volume Control Point Extended to $1.05
- Senkou Span B at $1.08.
- Senkou Span A at $1.14.
Graphique hebdomadaire Ichimoku Kinko Hyo XRP / USDT
If the buyers can reach a close above these four resistance levels, XRP has ample open space to run higher. Downside risks should be limited to the 61.8% Fibonacci retracement near the psychologically important $0.50 level.