2021-07-13 09:00:00

BTC anticipates reversal as altcoins wait patiently

  • Bitcoin price is close to setting up an equal low or a lower low, which could kick-start the run-up to $40,000.
  • Ethereum price has sliced through an immediate demand zone and might sweep below $2,000.
  • Ripple price is holding steady, awaiting a surge in bullish momentum to propel it higher.

Bitcoin price is currently retracing after a failed attempt at an upswing. This downswing has forced many altcoins to tumble.

As BTC pulls back, an equal low or a lower low will likely be formed around the July 9 swing low. This development is significant and will allow the flagship cryptocurrency to kick-start an upswing.

Bitcoin price searches for a platform

Bitcoin price is on the lookout for a foothold that will propel it higher. The demand zone extending from $30,573 to $31,979 is a likely candidate that will serve as a launchpad. Assuming BTC dips into this area, it might trigger massive buying pressure that propels BTC higher.

The midpoint of the range at $35,618 will be the first resistance barrier the bulls encounter. Breaching through this barrier will allow BTC to tag the subsequent levels at $36,600, $39,146 and $40,516.

In a highly bullish case, the pioneer cryptocurrency might tag the range high at $42,451.

BTC/USDT 9-hour chart

If Bitcoin price slices through the demand zone ranging from $30,573 to $31,979, it will denote the presence of sellers. While this move is a bearish development, a breakdown of the $30,000 support level will invalidate the bullish thesis and trigger a descent to the range low at $28,785.

Ethereum price continues to slide lower

Ethereum price broke out of a rising wedge pattern on July 8 and has dropped 14% so far. This sell-off sliced through an intermediate demand zone, stretching from $2,041 to $2,106 and pierced the support level at $2,018.

ETH will likely tag $1,909, the theoretical target for the rising wedge technical formation if the selling pressure continues.

Therefore, investors can expect Ethereum price to restart the upswing at its current position at $1,909, the demand barrier.

The upswing will face significant resistance at $2,297, the midpoint of the training range. Following a breach of this level, ETH bulls might propel it to $2,460, $2,640 and, in a highly bullish case, the range high at $2,897.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

Conversely, if Ethereum price slices through $1,909 and fails to climb past it, it will signify a surge in sellers. Therefore, investors need to expect a downswing that retests the range low at $1,699.

A breakdown of this barrier will end the optimistic scenario detailed above and trigger a crash to $1,438.

Ripple price shows strength

Ripple price is holding up despite the decline in Bitcoin price. XRP price sliced through the 50% Fibonacci retracement level at $0.647 briefly, setting up a higher high that suggests bulls are in town.

Now, while the general cryptocurrency market is heading lower, Ripple price is trying to scale higher in an attempt to produce a decisive 4-hour candlestick close above $0.647.

If this were to occur, it would signal the start of an uptrend that is taking a jab at breaching the higher probability reversal zone that extends from $0.680 to $0.727.

Considering how BTC price is setting up for a move to $40,000 or higher, XRP price could retest the range high at $0.785 in a highly bullish case.

XRP/USDT 4-hour chart

XRP/USDT 4-hour chart

The optimistic scenario is based on the assumption that XRP price slices through the range’s midpoint at $0.647. If the sellers overwhelm the buyers, leading to a rejection here, the remittance token is likely to head lower and retest the immediate support levels at $0.581 or $0.568. 

This downward move might briefly hinder or delay the upswing, but a breakdown of $0.547 will invalidate the bullish thesis and potentially trigger a 7% crash to the range low at $0.509.

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