Market corrected, here is the potential entry point for BTC, ETH and XRP
Bitcoin price hits two lows on its Caro $ 1,000 / 3-box reversal chart, suggesting a sharp decline before the end of this week. Ethereum price has filled the previous gap between the weekly real body and the weekly Tenkan-Sen, but the downside risk remains. XRP price may swing low due to the change in Ichimoku (Kumo Twist) cloud moment.
Bitcoin falls more than 16% for the week
Bitcoin price has developed a double bottom on the Caro chart (point and figure), which gives the bears a brief opportunity. The hypothetical short entry is a sell stop order at $ 55,000, a stop loss at $ 59,000, and a profit target of $ 42,000. While the actual target is $ 37,000 based on the Caro chart, the neck line (black line) of the previous inverse head and shoulders pattern is expected to serve as support.
Caro Chart BTC / USD $ 1,000 / 3-box inversion | Source: TradingView
The bulls can invalidate the short-term downward move by pushing Bitcoin price above the 100-fib extension at $ 63,000. Once there, BTC could soar to all-time highs.
Ethereum could continue to weaken
Like Bitcoin, ETH is also showing signs of weakness. A bull trap is developing on the Caro $ 25/3 box reversal chart. This pattern can create significant selling pressure as buyers eventually become sellers as the price falls rapidly south.
ETH / USD Caro chart 25/3 box reversal | Source: TradingView
The hypothetical short entry is a sell stop order at $ 4,050, a stop loss at $ 4,150, and a profit target at $ 3,300. However, the weekly Tenkan-Sen (not shown) is currently at $ 3,800 and could limit any further downside pressure. Therefore, closing the daily candle above $ 4,400 will invalidate the short setup.
XRP can make a swing low
XRP has plummeted in the past two weeks. From the November 10th high, XRP is down more than 24%. However, the Kumo Twist released on November 24th could end this downtrend and move it up. Kumo twists, when Senkou Span A falls above or below Senkou Span B, are usually the periods when swing highs or swing lows are formed.
XRP / USDT daily chart | Source: TradingView
XRP needs to win back $ 1.19 to get back into the bull market. From there, XRP should head towards the $ 2 region, but if XRP stays below the cloud ($ 1.05) this week, expect a sharp drop to $ 0.84.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Fxstreet