Fasten the seat belts that the bulls are gone and there is no more strength to make the price of Bitcoin (BTC) go up, according to analyst Sheldon McIntyre, from FXStreet.
Although McIntyre still maintains some optimism with the price of Bitcoin noting that it could return to US$46,000 their short-term analysis points to a further decline not only in BTC but also in Ethereum (ETH) and Ripple (XRP).
The analyst points out that Bitcoin is being traded lower close to $30,000 which acts as a psychologically important level.
As for the Ethereum he points out that the cryptoactive doesn’t live in a very good moment either and fights crucial support defined by the rising trendline that started in 2020.
In the case of XRP cryptocurrency continues to expand trading range showing no spirit of reversing the downtrend.
Bitcoin falling but that could change
McIntyre points out that the price of Bitcoin is in a downtrend more than that may change as the price of BTC has remained below the 10-week simple moving average (SMA) for nine full weeks.
“The deviation below the 10-week sma is -11.55%, but it hit -34.77% from the May low. From the March 2020 low, the price of Bitcoin fell -38.39% below the moving average and , from the December 2018 low, hit -38.69%, so on a relative basis, the sharpness and depth of the decline in May were similar to other lows for investment and reflected a substantial level of panic among BTC investors “, highlighted.
So, according to him, when looking at the price of Bitcoin in relation to the 10-week SMA, there is an argument that the dynamic low (panic) has the power to finalize a price decrease.
“Furthermore, time below the moving average points to at least a double-digit recovery in the near future. The only problem is time,” he said.
But as bulls don’t seem to have the strength to make the price rise again, the analyst points out that if the support area doesn’t hold, Bitcoin should drop to $27,000, thus testing the 61.8% Fibonacci retracement of the advance from March 2020 to April 2021.
On the other end, if the daily Bitcoin price closes above $33,300 it would be confirmation that the pattern has finally resolved to the upside and the BTC should march towards the pending resistance around the 38.2% Fibonacci retracement of the April-June at $42,589.
Ethereum price approaching a vulnerable position
On Ethereum, the analyst points out that the ETH price closed the week below the rising trend line, confirming the bearish bias and presented investors with a perspective that includes a 61.8% Fibonacci retracement test of the 2020-2021 advance .
“However, taking into account a potential Bitcoin price improvement, ETH investors need to consider the possibility of a bear trap. More specifically, the price of Ethereum temporarily falls below the 2020 rising trend line, creates fear and maybe test $1,730 before staging a quick recovery,” he said.
So for him, the upside potential for the Ethereum price includes the 50-day SMA at $2,245 and the upper trendline of the larger descending triangle pattern (highlighted in blue) at $2,510, achieving a 40% gain of $1,730.
XRP price now being impacted by a bearish pattern
In the case of the XRP price, according to the analyst, since the break of a rising wedge pattern on July 1st, the price movement has not been impulsive, suggesting that cryptocurrency market swings are driving the decline.
“However, a daily close below the retracement level will increase weakness and expose the XRP price to a more significant decline without noteworthy support until the 200-week SMA at $0.457,” he pointed out.
Also according to the analyst, the XRP price could test the lower edge of a trading range established by the 200-day SMA at $0.752, now reinforced by the Death Cross pattern, and the 78.6% retracement level at $0.555. Or is on the verge of a 15% collapse for the 200-week SMA.
“It’s a challenge to dictate a bullish narrative when the XRP price is just 8% above the June 22 low, and the entire market is decidedly bearish, so Ripple investors need to let the token prove its worth before making any trading decisions. bold investment,” he concludes.
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