- Bitcoin price is likely to crash as smart money has trapped longs.
- Ethereum price action is showing sell signals.
- XRP price action is the most bullish, invalidation levels are vital.
The cryptocurrency market is in an unfortunate situation. Traders may have been prompted to take the plunge following Monday’s rally, which played directly into the smart money game plan as they are still in control of the downtrend. The price of Bitcoin, Ethereum, and XRP might experience severe liquidity hunts if market conditions persist.
Investing in the price of Bitcoin is now just a bet
The failure of bitcoin price to maintain critical levels at $41,500 and $40,000 hints at strong bearish control. Investors still in the trade likely placed their stop losses below Monday’s low of $38,536, which is an obvious target for bears to aim for next. If the swing low is breached, the price of BTC might unfortunately retrace towards the low area of $36,000.
BTC./USDT 4 hour chart
Bitcoin price should justify traders waiting for a break from $43,000 to say the uptrend will continue with confidence. In the grand scheme of things, missing the first 10% of a move is okay when you are on the right side of the trend. If the BTC price can rise above $43,000, the target of $51,000 will be back on the table, resulting in a 30% increase from the current BTC price.
Ethereum Price Could Plunge Towards $2,750
Ethereum price fell back below the psychological level of $3,000. ETH price is currently trading at $2,950 as the bears printed repeating bearish engulfing candlesticks of equal length. If market conditions persist, the price of ETH will likely drop to $2,750.
ETH price broke all key levels above $3000 with strong bearish candles. Additionally, the 50-day moving average was also broken and accompanied by decent selling volume on the 4-hour chart.
ETH/USDT 4-Hour Chart
Ethereum price invalidation remains the same as last week at $3,320. If the bulls can rebound in this area, the upward trend in ETH prices will be back on the table. Traders might confidently aim for $4,000, which would result in a 35% increase from the current Ethereum price.
XRP price has the most potential
XRP price still looks the most optimistic in the cryptocurrency market. Ripple price broke out of the descending wedge pattern this month and has now just retested the upper trendline. XRP is currently trading at $0.72. An average dollar cost approach might be the best option for XRP enthusiasts.
XRP price volume continues to fade on the 4-hour chart, adding to the bullish sentiment. There has not been a bearish candle to match the power of the bullish March 15th engulfing candle of 10%.
XRP/USDT 4 hour chart
The safest invalidation level will be below the second supply zone at $0.62. XRP’s long-term targets are in the $3.00 area, so any rebate from smart money is likely to come with some drama. If the price of XRP rises above $0.62, expect all hell to break loose. The price of XRP might likely fall back to $0.44, resulting in a 40% drop from the current price.
