Technical Analysis: Bitcoin, ETH and XRP
Bitcoin price took quite a hit after the February 3rd week plunge, which also took a toll on ETH, XRP and other altcoins. However, BTC appears poised to rally rapidly to recoup some of its losses.
Bitcoin price is about to reverse
Bitcoin price is currently floating in the demand zone between $36,398 and $38,895, which suggests a rally is imminent. Assuming that BTC bulls can gain strength, this move will retest the $42,748 resistance barrier, suggesting a 12% rally.
In some cases, the BTC price even broke through this level and hit the floor of the weekly supply range of $45,550.
BTC/USD 1-day chart | Source: TradingView
Optimism notwithstanding, if the price creates a daily candle that closes below $36.3698, it will make a lower low and invalidate the bullish thesis.
ETH price up but still capped
ETH price is currently breaking out of a daily demand zone that ranges from $2,160 to $2,567, suggesting a quick recovery seems likely. The first hurdle ETH will face is the 50-day simple moving average (SMA) at $2,925. A price above it will pave the way for a daily retest of the supply zone, which stretches from $3,188 to $3,393.
If the price continues to break out of this challenging zone, ETH is likely to reach around $3,600 – the crossover of the 200-day and 100-day SMA. At this barrier, ETH’s upside momentum is limited.
ETH/USD 1-day chart | Source: TradingView
Similar to the Bitcoin situation, if the price creates a daily candle that closes below $2,160, it will end the bullish thesis. In such a situation, ETH could retreat lower and establish a support floor at $1,730.
XRP price is returning to old levels
XRP price fell by 16% between February 21 and 22, reaching the $0.65-$0.677 demand zone. However, now buyers seem to be active as the price is up 8% after breaking the aforementioned support zone.
This recovery move is likely to propel the token further higher until the price retests the resistance barrier of $0.778 – a corresponding 10% rise from where it is right now. In some cases, an increase in buying pressure can lead the XRP price towards $0.813 .
XRP/USD 4 hour chart | Source: TradingView
Meanwhile, XRP breaking the $0.65 support will set a lower low, invalidating the bullish thesis. This development will push the altcoin towards the $0.546 support, where buyers are likely to attempt a comeback again.
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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