- Bitcoin prices could drop and complete the right shoulder of the inverted head and shoulders pattern and then rally above $ 67,450.
- Ethereum must return $ 2,050 as support before its market value rises to a new all-time high of $ 2,500.
- After a sharp breakout, XRP prices could rise as well.
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The surge in profit-taking seems to have pushed Bitcoin, Ethereum, and XRP into a consolidation period. However, these digital assets are expected to resume their upward trend soon.
Bitcoin Consolidates Ahead Of Higher Highs
Bitcoin was dormant after rising to a new all-time high of nearly $ 62,000 in mid-March. The stagnation phase resulted in the formation of an inverted head and shoulders pattern on its 4-hour chart.
At the time of writing, BTC is creating the right shoulder of a bullish formation. Based on the height of the left shoulder, bitcoin prices could drop to a potential breakout. A decline to the 38.2% or 23.6% Fibonacci retracement level would have made the inverted head and shoulders pattern more symmetrical.
These important support levels are $ 54,570 and $ 52,960.
While it is highly likely that Bitcoin’s price will decline before it sees higher highs, the inverted head and shoulder patterns do not have to be symmetrical.
Be sure to pay close attention to the pattern neckline or the 78.6% Fibonacci retracement level at $ 59,290 in case of an early breakout. If Bitcoin manages to close decisively above this price barrier, 14.90% climb can be expected to the Fibonacci retracement level of 141.1% or 161.8%.
These areas of interest are $ 67,450 and $ 70,330, respectively.
Such a bullish target is identified by measuring the height between the neckline and the head of the inverse head and shoulders pattern and adding that distance to the breakout point.
Ethereum hits new all-time highs
Ethereum went through a month of consolidation, during which its price hit a series of lower highs and lower lows. This behavior led to the formation of a symmetrical triangle on its 4-hour chart.
Ethereum was able to breakthrough of this pattern on March 31, rallying nearly 16%, reaching a new all-time high of $ 2,160.
Although Ether fell 10.70% after the peak, there is still room for growth. The height of the Y-axis of the triangle suggests that ETH may spike another 18% from the recent high to the Fibonacci retracement level of 141.1% or 161.8%.
These potential bullish targets are $ 2,480 and $ 2,720, respectively.
The recovery of $ 2,050 resistance as support can be seen as the first confirmation signal that Ethereum is targeting higher highs.
It is worth noting that a deviation from the $ 2050 resistance level could lead to a pullback to the 78.6% Fibonacci retracement level at $ 1860. This level coincides with the breakout point of the triangle.
A potential correction to the $ 1,860 support level can be seen as a valid retest of the triangle’s upper trendline, ensuring that the breakout is reliable and credible. It also gives detached investors the opportunity to re-enter the market, increasing the pressure to achieve their goals.
XRP is ready for the resumption of the uptrend
Ripple’s XRP made headlines after break out upturned head and shoulders who saw it rise above $ 1.00 for the first time since mid-February 2018. After the explosive price movement, XRP entered a consolidation phase on the 1-hour chart.
The short-term lackluster price movement seen after the April 6 peak appears to be creating a bullish pennant formation pennant. Meanwhile, the 100% rise seen after April 4 appears to have developed the model’s flagpole.
Another spike in buying pressure that allows XRP to break the upper trendline of the pennant or the 78.6% Fibonacci retracement level at $ 1.00 will signal a potential breakout.
In such unique circumstances, this cryptocurrency could rally almost 50% to 127.2% or 141.4% Fibonacci retracement level. These resistance barriers are at $ 1.36 and $ 1.50, respectively.
A bullish target is determined by measuring the height of the flagpole and adding that distance to the breakout point.
While the odds appear to be in favor of the bulls, investors should keep in mind that XRP should hold above the 61.8% Fibonacci retracement level of $ 0.86.
Failure to do so could nullify the optimistic outlook and lead to a correction to 38.2% or 23.6% Fibonacci retracement levels. These support levels are at $ 0.73 and $ 0.6f6, respectively.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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