Analysis

BTC, ETH and XRP Price Predictions – Market Consolidation Before Blasting In 2022

BTC recently showed a theoretical long setup; signal that the upside is still strong. Ethereum is also positioned for a rally of over 50%. XRP remains under pressure from technical and fundamental factors – but that is about to change.

BTC price continues to stagnate, the breakout will happen soon

BTC was mostly stuck in the $ 46,000 to $ 50,000 range in December. While the daily chart shows a persistent bearish lineup in the form of a bear flag, the Caro (point and figure) chart shows otherwise.

The chart is defined as a $ 500/3 box reversal. A hypothetical long entry is a 3-box reversal buy-stop order that triggers $ 48,500. The stop loss is 4 stops, currently at $ 46,500 and the profit target is $ 63,000. The hypothetical trading setup offers an RR (reward / risk) ratio of 7.25: 1, with an implied profit target of 30.5% calculated from entry.

Caro Chart BTC / USD $ 500/3-box reversal | Source: TradingView

The downside risk for BTC remains. This time of year is famous for the extreme volatility of price movements. Watch for any move below the $ 46,000 value zone as this could result in a flash crash into the $ 30,000 region.

$ 6,000 goal for ETH

Ethereum is waiting for a clear breakout to trigger the setup identified on December 30th. This hypothetical trading setup is still valid.

The hypothetical entry for Ethereum is a buy stop at $ 4,000, with a stop loss at $ 3,500 and a profit target at $ 6,000. This trade offers an RR (risk / return) ratio of 5: 1 with an implicit profit target of 52% from entry. A two to three cell stop helps protect potential gains once the entry is triggered.

Caro chart ETH / USD 100 $ / 3 box inversion | Source: TradingView

This trading setup will be void if it drops to $ 3,300. Ethereum could form a short setup aiming at $ 2,800 in this case.

XRP develops bullish reversal pattern, establishes bear trap

The XRP price action looks more optimistic than Bitcoin and Ethereum. A spike pattern was recently completed on the $ 0.01 / 3-box reversal chart. The condition to initiate a position on the spike pattern is simple: reverse 3 cells.

The long setup for XRP is a buy stop at $ 0.85, a stop loss at $ 0.81, and a profit target at $ 1.10. This trade represents an RR (return / risk) ratio of 6.25: 1, with an implied gain of 30% from the entry. A two to three cell stop helps protect potential gains once the entry is triggered.

XRP / USD Caro chart $ 0.01 / 3-box reversal | Source: TradingView

Traders can expect a breakout above the hard resistance at USD 1 as it was tested multiple times in December.

You can see the BTC, ETH, XRP price Here.

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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.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.