• Bitcoin price flips previous consolidation area into support.
• Ethereum price falls below $3,000, there is a risk of it reaching a 2022 low.
• XRP falls more than 10% before bouncing off its last Ichimoku support.

Bitcoin dipped below the Ichimoku cloud over the weekend, extending its losses below $40,000. Likewise, Ethereum price fell below the critical Ichimoku support late last week. Ultimately, the XRP bears tried to wrest control from the bulls but failed.

BTC finds a bottom, a return to $40,000 is likely

BTC has seen a significant drop in price. That’s because risk markets around the world continue to come under pressure as Russia invades eastern Ukraine.

Since last Tuesday (February 15, 2022), BTC has fallen from a high of $44,760 to as low as $36,400 – a nearly 20% drop in one week. This move also helped the price confirm the previous area of ​​resistance towards support.

The bulls are likely to take over and push BTC price back into the Ichimoku cloud to test the 61.8% Fib retracement level at $41,160 as resistance. Ultimately, the bulls need to get the price above the Ichimoku cloud (Senkou Span B) to help BTC return to the bull market. A daily close above $42,685 will confirm the breakout and potentially trigger a rally towards $50,000.

BTC/USDT daily chart | Source: TradingView

However, downside risks remain. If the bears push the price below $36,500, BTC could make a fresh 2022 low and even retest the 2021 low at $28,500.

Ethereum bounces off strong Fib support near $2,500

Ethereum has come under the same selling pressure as Bitcoin and the broader crypto market. Like Bitcoin, Ethereum is down more than 20% since last Tuesday – but there are indications it is forming a new bottom.

The most important thing for the bulls in completing the bottom is to prevent any downside momentum. This can be achieved by pushing Ethereum price to the bottom of the Ichimoku cloud (Senkou Span A). However, that can be a daunting task.

A close above $2,925 would send the price into the Ichimoku cloud, but to do so, buyers need to break four resistance levels between $2,800 and $2,900: Kijun-Sen, Tenkan-Sen, Senkou Span A and 50% Fibonacci retracement at $2,900.

From there, the target is just above the 2022 volume checkpoint and the top of the Ichimoku cloud (Senkou Span B) at $3,150. In this case, Ethereum price will complete the bullish breakout and trigger the entry needed to retest $4,000.

ETH/USDT daily chart | Source: TradingView

The bears have an easier way to push ETH price into the major selloff area. A close below $2,400 could trigger a sell-off that will take ETH to $1,800.

Strong selling pressure on XRP, but bulls continue to defend

XRP faced massive selling pressure on Monday. The 11% drop is the biggest drop for a major cryptocurrency, but XRP still retains some support levels that Ethereum and Bitcoin don’t have.

Monday’s drop sent XRP below three key Ichimoku support levels: Tenkan-Sen, Kijun-Sen, and the top of the Ichimoku cloud (Senkou Span B). Most notable was the move below the Ichimoku system’s strongest level, Senkou Span B. The bulls have held XRP price above Senkou Span A despite heavy selling pressure.

Indecision is the order of the day given XRP price in the Ichimoku cloud. While it seems like the bears have an easier way to take control given XRP’s proximity to the bottom of the clouds, they still have work to do. Until the price closes below the Chikou range, XRP remains above strong support. The bears need to push the XRP price below $0.70 and $0.60 to regain control.

XRP/USDT daily chart | Source: TradingView

On the other hand, the bulls only need to push XRP above $0.79 to start a new rally.

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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