- Bitcoin price is testing past congestion zone as support.
- Ethereum price continues to drop below $3,000, threatening to hit 2022 lows.
- The XRP nose plunges more than 10% before bouncing off its final Ichimoku support level.
Bitcoin price fell below the Ichimoku Cloud over the weekend and extended its losses below $40,000 for the first time since early February. Similarly, Ethereum price fell below key Ichimoku support levels over the weekend before hitting a critical support zone to close out Monday’s session. Finally, XRP traders are trying to take control of traders and break below the $0.70 value zone.
Bitcoin price hits bottom, likely back to $40,000
Bitcoin price has come under significant downward pressure. Risky markets around the world continue to be pressured by Russia’s invasion of Ukraine.
Since last Tuesday (February 15, 2022), Bitcoin has fallen from a high of $44,760 to a low of $36,400, a drop of almost 20% in one week. Whether the news or standard technical analysis behavior is to blame, BTC nonetheless came back to test a former resistance level as support – so far it has held.
Traders are likely to take over and push Bitcoin price back inside the Ichimoku cloud to test the 61.8% Fibonacci retracement at $41,160 as resistance. Ultimately, traders will need to send Bitcoin back above the Ichimoku Cloud (Senkou Span B) to bring BTC back into a full bull market. A daily close above $42,685 would position Bitcoin in an ideal bullish breakout of Ichimoku, leading to moves beyond $50,000 and into the $60,000 value areas.
Graphique quotidien Ichimoku Kinko Hyo BTC / USD
However, the downside risks are significant. If traders push Bitcoin price to a close below $36,500, then new 2022 lows and even a retest of 2021 lows at $28,500 are almost a certainty.
Ethereum price hits strong Fibonacci support near $2,500
Ethereum price suffered the same selling pressure experienced by Bitcoin and the broader cryptocurrency market. Like Bitcoin, Ethereum has lost more than 20% since last Tuesday – but there is evidence of support and a new bottom in development.
The most important thing for bulls to do is to stave off any further bearish momentum. This can be done by pushing the Ethereum price to a close above the low of the Ichimoku Cloud (Senkou Span A). However, this can be a complicated task to achieve.
A close at $2.925 or above would send Ethereum price back into the Ichimoku cloud, but to do so buyers need to break four resistance levels, all between $2,800 and $2,900: the Kijun-Sen, the Tenkan -Sen, the Senkou Span A and the 50. % Fibonacci Retracement at $2,900.
From here, the goal is to close above the 2022 volume control point and the Ichimoku cloud top (Senkou Span B) at $3,150 or higher. In this scenario, Ethereum price would complete an ideal bullish breakout of Ichimoku and trigger the necessary entry to retest $4,000.
Graphique quotidien ETH / USD Ichimoku Kinko Hyo
Traders have an easier path to put the price of Ethereum into significant sell territory. A close below the candlestick bodies, at $2,400 or lower, might trigger a sell-off that might push ETH down to $1,800.
Selling pressure on XRP prices continues, but traders fight back
XRP price came under intense selling pressure on Monday. The 11% drop was the largest suffered by any major cryptocurrency, but XRP maintained a support structure where Ethereum and Bitcoin did not.
Monday’s price action saw XRP plunge below three crucial Ichimoku support levels: the Tenkan-Sen, the Kijun-Sen, and the top of the Ichimoku Cloud (Senkou Span B). The most significant of these declines was the break below the strongest level in the Ichimoku system, Senkou Span B. Traders held XRP price above Senkou Span A despite heavy selling pressure.
With XRP price inside the Ichimoku cloud, indecision is now the name of the game. cloud, their path is much more difficult. Until the Chikou Span closes below the candlestick bodies, XRP remains in significant support. Traders should push XRP price below the $0.70 and $0.60 areas to gain control.
Graphique quotidien Ichimoku Kinko Hyo XRP / USDT
On the other hand, the Bulls only need to bring the price of XRP back to a close at or above $0.79 to start a new bull run.
