- Bitcoin price correction seems to be holding above $60,000, but fear of an extended pullback persists.
- Ethereum price coils up between $3,900 and $4,200, preventing a retracement.
- Ripple price consolidates in a bullish pennant, suggesting a 26% ascent is likely.
Bitcoin price has been due for a retracement after rallying for three straight weeks in October. This came on October 21, when BTC began a correction that is now holding up pretty well above a psychological barrier. While a deeper correction seems likely, Ethereum, Ripple and altcoins are looking good and ready to pop higher.
Bitcoin price makes a shaky comeback
Bitcoin price dropped 11% over two days starting October 22 as it retested the $60,000 psychological level. Now buyers seem to have stepped in, however, signaling a makeshift albeit temporary bottom.
If BTC manages to produce a daily close above the October 21 open at $66,027, it will suggest a continuation of the uptrend. Failing to do so, however, will result in consolidation above $60,000. In the case that Bitcoin price shatters the said psychological level, investors can expect it to head toward the liquidity zone, ranging from $52,956 to $56,004.
A dip into this area will rid the Bitcoin market of short-term sellers as they exit the market booking profits. This will then allow the long-term rally to continue. In this situation, Bitcoin price will likely make a run at the $65,000 resistance barrier, a clearance of which will kick-start a run-up to new highs.
The 161.8% trend-based Fibonacci extension level at $77,525 will be the next high bulls target.
BTC/USD 1-day chart
On the other hand, if Bitcoin price breaches the $52,956 support floor, it will head toward the $50,000 psychological level, which may provide a level from which the uptrend could start again.
Ethereum price looks for an opening
Ethereum price looks ready for a run-up to contest its previous highs at $4,172 as it is consolidating between the $3,900 and $4,200 barriers. Like Bitcoin price, ETH has corrected 11% from its swing high at $4,380.
As long as the $3,900 support floor holds, Ethereum price will probably make a run up to new all-time highs. If the said support barrier gives way, however, investors can expect ETH to retrace to the $3,619 demand barrier. In a highly bearish case, the Ethereum price might revisit the $3,202 support level before restarting the bull rally.
A decisive daily candlestick close above $4,380 will confirm the uptrend and propel ETH to $4,957, coinciding with the 100% trend-based Fibonacci extension level – perhaps even making it to the $5,000 psychological level.
ETH/USD 1-day chart
On the flip side, if Ethereum price shatters the $3,200 barrier, it will dip into a stable support zone, extending from $2,765 to $3,202. This area has seen massive consolidation and will absorb the selling pressure, giving ETH price another chance to trigger a bull run.
Ripple price coils up for an explosive rally
Ripple price is consolidating inside a bullish pennant pattern, suggesting a massive move around the corner. From September 29 to October 10, XRP price rose 38%, creating the ‘flag pole’ section of the pennant pattern. This move was followed by a tight ranged movement that led to the formation of lower highs and higher lows, resulting in a pennant.
This technical setup forecasts a 26% ascent to $1.43, determined by adding the flag pole height to the breakout point at $1.14.
A decisive close above this level will indicate the start of a new uptrend. The ascent will face resistance at $1.24, but clearing this will open the path to $1.43. In some cases, Ripple price could extend this climb and retest $1.67 or $1.84, constituting a 67% gain.
XRP/USD 1-day chart
While things are looking up for Ripple price, a breakdown of the pennant’s lower trend line at $1.05 will invalidate this setup. In this situation, XRP price might revisit the $1 psychological level, which might provide support for buyers to launch a comeback.
Bitcoin Doesn’t Work as a Form of Payment, According to Celsius CEO Alex Mashinsky – Here’s Why
The CEO of crypto lending platform Celsius does not think that Bitcoin (BTC) has the correct properties to become a suitable payment option.
In a new interview on Coin Stories, Alex Mashinsky offers a contrasting picture between the qualities of the US dollar and the leading cryptocurrency.
“I’d much rather be in a scenario where the dollar remains as the reserve currency but Bitcoin continues to do very well…
The dollar is a phenomenal form of payment. It’s a horrible store of value and Bitcoin is a phenomenal store value, but it’s a pretty bad form of payment.”
Mashinsky highlights that it is not a great idea to use Bitcoin to pay for goods and services as he says that people who have done so in the past often regret making the transaction.
“If you fell for Elon Musk’s deal where he gave you a Tesla for two or three Bitcoins, obviously you hate driving that Tesla because you would in a second go back and take those three Bitcoins and return the Tesla, which lost value during the same period of time.
Anything you bought with Bitcoin in the last 10 years, you rather have the Bitcoin back and would have paid in US dollars. That’s really the crux of the matter that you cannot use it as a form of payment or cannot use it in a way that makes you happy about the transaction.”
Is Bitcoin Officially in Bear Territory? Crypto Analyst Michaël van de Poppe Analyzes State of BTC After Deep Pullback
A widely followed crypto strategist and trader is looking at the state of Bitcoin to determine whether the largest crypto asset by market cap has crossed bear territory.
Hours before the deep crypto pullback, analyst Michaël van de Poppe told his 518,000 Twitter followers that he was expecting Bitcoin to correct hard and leave an impression that the bull market is over.
“The scenario is very simple.
- People expected a peak bull run in December. Not happening.
- Let the market correct due to that.
- People will expect a bear market at the low (approx. $47,000-$50,000).
- Moon the markets and leave everyone behind.
With Bitcoin trading below $50,000, Van de Poppe says BTC is still in a bull market and highlights that he believes the correction is now over.
“Overall, this should be the low of a standard 30-40% correction in the markets.
However, corrections are super wicky the past few years in Bitcoin as there’s such a massive amount of leverage in the markets.
Through that, we overshoot.
But all good, should be done now.”
Looking at the charts, Van de Poppe says there’s a decent chance that Bitcoin will launch a V-shaped reversal or a sharp rally where BTC revisits its all-time high around $69,000 by early next year.
“Rounding off the day with this chart on Bitcoin.
I think that the chances for a V-shape recovery are there.
We’ll see coming week how it unfolds, but these bounces are significant and good.”
Bitcoin is exchanging hands at $48,994, down over 7% in the last 24 hours.
This Bitcoin fractal predicted the fall, but here’s the next price target
Bitcoin, along with the larger crypto-market, dropped the ball after the most recent price fall had echoes of 19 May’s crash. With BTC shedding 25% of its value in a matter of a few hours, the market seemed to reset to its September-end levels. While it was trading around the $49k-mark at press time, for a brief moment, it did tread close to $42,000 too.
The aforementioned price fall led to a mass wipeout, giving way to over $2.5 billion liquidations across the market. Ergo, the question – Does the macro bullish outlook for Bitcoin remain intact?
The dip was overdue
On the daily chart, Bitcoin’s price had been in a falling wedge structure since the 16 November crash. Looking at the larger structure for the past month, it can be argued that the latest crash to the $42k level was overdue.
During the previous major corrections too, the price had broken below this level in May and then again, in late June. However, it has always managed to hold it.
In fact, this level has acted as a support for the +100% rally from July to November. Thus, as long as the weekly closes above or at least around the 1W MA50, BTCUSD has a legitimate probability of forming support there and starting a new rally.
Interestingly, an RSI fractal seemed also to be in play here. As noted in the chart above, a similar RSI structure was seen from mid-2019 to early 2020, as seen from early 2021 to the time of writing. The key catalyst in both cases was the sell-off due to COVID fears.
However, this crash was more of a combination of multiple factors like the panic among retail investors, tech market crash, over-leveraged crypto-markets, high Open Interest, positive funding rate, and so on.
So, what’s next?
For now, while the price has rebounded, another fall to the lower $40k-level cannot be discarded.
However, BTC’s two main utility indicators continue to rise – A good signal. BTC’s token circulation and its daily active addresses, at press time, sat at a 6-month high. In fact, they seemed likely to continue their uptrend too.
Furthermore, the estimated leverage ratio dropped by 22% in just one day. This was last seen in September when the price dropped by 24% and touched $40k.
At the time of writing, the biggest takeaway as BTC’s price rebounded from its lower levels seemed to be that the market dynamics have been looking very different than previous cycles.
Even though volatility was still high, the market seemed to move from FOMO-induced price tops and sell-offs to more mature and sustainable growth while flushing leverage. Nonetheless, with the price structure still tilting towards bearish, despite the bounce, it would be best to be cautious.