- Bitcoin price is coming up against a critical resistance zone which will determine the short-term trend.
- Ethereum price extends its two-week rally to a nearly 25% gain.
- XRP price is stuck at $0.84 as traders are unable or unwilling to generate a breakout.
Bitcoin price must break through and close above a critical resistance level to maintain the current uptrend. Ethereum price, unlike Bitcoin, has moved above and is about to close above the Ichimoku Cloud on the weekly chart, indicating that strong sustained bullish momentum is ahead. XRP price action, which once outperformed BTC and ETH at one point, has been stuck at the $0.84 level since Monday’s close.
Bitcoin price set for 25% rally or 10% pullback
Bitcoin price action has been extremely bullish this week, gaining nearly 7% on the release, with little selling pressure or bearish price action.
However, Bitcoin is just above a critical make or break point. Despite the powerful bullish performance so far, if Bitcoin price fails to close above $45,090, it risks triggering another push down from the Ichimoku cloud.
The $45,090 value area contains the weekly Ichimoku cloud top (Senkou Span A), the 61.8% Fibonacci retracement ($44,655), and the current bearish flag top ($44,888). If traders stop Bitcoin price and cannot close above this level, traders may see an opportunity to trap traders and initiate another push down from the Ichimoku cloud near $38,000.
Ichimoku Kinko Hyo BTC/USD Weekly Chart
If the buyers manage to close Bitcoin price at $45,100 or higher, the next Ichimoku resistance level will not appear until the Kijun-Sen at $50,910, slightly above the volume control point of 2021 at $47,787. Upside potential is likely limited to $48,000-$50,000 over the next week.
Ethereum Price Cracks Above Ichimoku Cloud
Ethereum price, at press time, is about to complete a weekly close above the Ichimoku cloud. There was concern on Wednesday and Thursday whether this event could or would occur, but unless something drastically changes, ETH is about to complete a very bullish event.
Upside potential, however, may be limited to the $3,300 value zone until next week. Additionally, the lower trendline of a previous bull flag and the 38.2% Fibonacci retracement could halt any bullish movement over the weekend. But the weekly oscillators show that a sustained upward move is very likely.
The Relative Strength Index remains in bullish market conditions and has been stuck between the two oversold levels of 40 and 50 since the week of January 7, 2022. The angle currently shows a likely break above the 50 level. Moreover, the Optex Band oscillator is breaking out of the extremely oversold level for the first time in eight weeks.
Graphique hebdomadaire Ichimoku Kinko Hyo ETH / USD
For bullish Ethereum prices, the most important oscillator metric to watch is the November 12, 2021 peak in the composite index. If the composite index forms a high above the November 12, 2021 high – but the price has not made a new high above the November 12, 2021 price high, then this would create a hidden bearish divergence, indicating further southward movement.
XRP Price Expects a Clear Upside Breakout, but Traders Seem Worried
XRP price has been against the 38.2% Fibonacci retracement near $0.84, with very little pressure to move above or below that level. XRP remains in a bullish Ichimoku Breakout setup – but lacks follow through.
If the XRP price finds sellers, then a pullback towards the daily Tenkan-Sen at $0.82 may be their primary target. A breakout of the Tenkan-Sen on the daily Ichimoku chart would mean an even lower test for the Kijun-Sen at $0.78. The upside potential over the weekend and early next week is likely the $1.00-$1.05 value zone.
Graphique quotidien Ichimoku Kinko Hyo XRP / USD
However, downside risks remain a concern. XRP price remains in a bearish continuation pattern. A daily close at $0.73 or lower could trigger substantial selling pressure down to the $0.50 value zone.