- The price of Bitcoin continues to accumulate between $ 45,000 and $ 48,000.
- Ethereum price continues to display a rare bullish reversal buying opportunity before reaching the $ 6,000 value area.
- XRP price could gain over 77% if it can regain the $ 1 value area.
The price of Bitcoin sees its buying volume increase, establishing a solid support area going forward. Ethereum price action is waiting for buyers to trigger one of the most powerful and sought after Point and Figure entry patterns. XRP price continues to tread near its final support areas, but a bullish breakout could be imminent.
Bitcoin price action signals bearish bias despite controlling buyers
Bitcoin’s price action, from Ichimoku’s perspective, is extremely bearish. The current fence is located below the Tenkan-Sen, Kijun-Sen and Cloud (Senkou Span A and Senkou Span B). The highlighted red area in the graph image below represents a decisive price point for Bitcoin since late November 2021.
The red zone establishes two levels in the current volume profile where Bitcoin is weakest. Below the $ 48,000 value area, Bitcoin is under massive threat of a rapid collapse to the next high volume node at $ 37,000. The price of Bitcoin has been flirting with a blackout for over a month, however, and yet traders have been unable or unwilling to push Bitcoin into a sell zone.
Daily Ichimoku BTC / USD Chart
The most likely explanation is that a trader trap is developing on the daily chart, which could be confirmed if Bitcoin were to close daily above the Tenkan-Sen and Kijun-Sen at or above the zone. valued at $ 49,000. In this scenario, a significant number of leveraged short positions would initiate the liquidation process, likely rallying Bitcoin in the unregulated derivatives markets, with some of this momentum spilling out into the spot market.
Ethereum Price Positioned For Explosive 50% Increase
Ethereum’s price shows the development of a strong bullish reversal pattern in Point and Figure analysis known as Bullish Shakeout. This pattern, however, is only valid if an instrument is in a larger uptrend, and the entry must occur near the start of a bullish continuation move. In other words, the Bullish Shakeout allows traders to enter one of the first opportunities after a corrective move.
The significance of this hypothetical purchase setup is not just the model itself, but the other two events that coincide if the entry is triggered. First, the entry would confirm a breakout above a triple top. Second, the entry would convert the Ethereum price action to a bullish market on the $ 100/3-box Reversal Point and Figure chart.
The hypothetical long entry for the Ethereum price is a buy stop order at $ 4,000, a stop loss at $ 3,500 and a profit target at $ 6,000. This trade represents a risk / reward ratio of 5: 1 and an implied gain of 52% from the entry. A trailing stop of two to three boxes would help protect any potential profit after the entry is triggered.
ETH / USD $ 100/3 boxes Table of reversal points and numbers
This trade setup is invalidated if the price of Ethereum rises to $ 3,300. Ethereum would likely see a bearish pattern to target the $ 2,800 value area in this scenario.
XRP price contracts against key Fibonacci and Ichimoku levels; a breakout may occur soon
XRP price remains limited in a set of critical Fibonacci and Ichimoku levels. Between the price range of $ 0.82 and $ 0.89, the Tenkan-Sen, Kijun-Sen, Senkou Span A, 38.2% Fibonacci retracement and 100% Fibonacci extension all exist. So it’s no wonder that XRP struggled to break into the $ 0.90 price bracket.
Despite this, XRP may soon trigger a massive bullish explosion. The Optex Bands Oscillator, Relative Strength Index and Composite Index are all perfectly positioned to confirm any significant increase in the price of XRP – and that such a move could be sustained. The key oscillator to watch is the Composite Index. If the Composite Index breaks its moving averages, XRP will likely be positioned near the $ 1.00 price level.
XRP / USD Daily Ichimoku Chart
Ultimately, the price of XRP needs a close at or above $ 1.00 to ensure that XRP is in a clear and undeniable uptrend. Failure to meet the $ 0.80 support area could trigger a massive drop towards the $ 0.50 area.