- Bitcoin price reaches and maintains its main support zone as the threshold for a bullish breakout decreases.
- Ethereum price maintains a bullish structure despite the unknowns and geopolitical unknowns.
- XRP develops a bullish flag before returning to the $1.00 price range.
Bitcoin’s price action, like the rest of the cryptocurrency market, was hammered south on Thursday amid heightened fears of a possible war between Russia and Ukraine. Ethereum price is observing important resistance and support levels, relatively unchanged price action behavior. Like BTC and ETH, XRP is relatively unchanged and has maintained its major near-term support zone – while also developing a robust bullish continuation pattern.
Bitcoin price braces for a fresh bull market above $43,850
Bitcoin’s price action will likely surprise many cryptocurrency participants. Thursday’s decline led to an inordinate number of pundits and social media outlets declaring that any hopes of the cryptocurrency market returning to a bull run are null and void. However, the joke may be on them.
On Saturday, Bitcoin only needs to accomplish a daily close above $42,500 to complete an ideal bullish Ichimoku breakout. Of course, this depends on Bitcoin maintaining the critical support level it just tested in the $40,000 value area. But given the hidden bullish divergence between the Optex bands and the price chart, it is very likely that Bitcoin price will see a gradual increase in its bullish breakout entry zone.
Graphique quotidien Ichimoku Kinko Hyo BTC / USD
Traders only need to get nervous if there is a daily close that puts the Chikou Span below the candlesticks and into open space. For this to happen, Bitcoin price needs a daily close below $36,600. In this scenario, Bitcoin would likely fall below the 2022 lows to test the $30,000 price range.
Ethereum price returns to $2,900 support and finds buyers
Ethereum’s price action for this week has been mostly par for the course. Upside potential was limited by a strong resistance cluster between $3,000 and $3,200, while downside risks were limited to a support cluster between $2,900 and $3,000.
Traders were strong in holding Ethereum price away from a selloff, but were weak with their belief to push ETH higher.
As Ethereum price moves into the weekend, the upside potential is likely limited to a range between $3,100 and $3,300. The 2021 volume control point, Tenkan-Sen, Kijun-Sen, the 38.2% Fibonacci retracement, the top of the Ichimoku cloud (Senkou Span B) and the bottom of a prior bull flag all exist with this area valuable. This is the hardest range for Ethereum to break.
Graphique quotidien ETH / USD Ichimoku Kinko Hyo
On the bearish side of the trade, the 50% Fibonacci retracement at $2,900 is the critical area to watch. However, traders can test another level of Ichimoku support: the Kijun-Sen at $2,725. Failure to hold Ethereum price to a daily close above the Kijun-Sen might trigger a massive continuation of the decline towards the $2,000 price level.
XRP price is forming a bullish flag, indicating that a bullish continuation move and breakout towards $1.00 is imminent
XRP price action is consolidating between the $0.75 and $0.87 price levels. More importantly, XRP continued to trade near the critical $0.80 upside breakout level.
A hidden bullish divergence has developed between the price chart and the composite index. Moreover, this same divergence has now formed on the Optex tapes.
XRP needs to hold a close above the Ichimoku Cloud (Senkou Span B) at $0.78. Failure to do so means it might go down to the bottom of the cloud (Senkou Span A) at $0.70. On the other hand, if traders can push XRP to a daily close above the previous high near $0.85, this should entice sidelined buyers to enter before XRP hits 1. $.00.
Graphique quotidien Ichimoku Kinko Hyo XRP / USD
Downside risks are likely limited to the 2022 lows in the $0.60 price range.
