Crypto Currency News

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Crypto rally built on house of cards, collapse imminent

  • Bitcoin price is likely to pull back to the $21,250 support level as bulls exhaust after a 45% upswing.
  • Ethereum price leads the corrective move as it slips below the equal highs at $1,679.
  • Ripple price bounces off the $0.381 to $0.400 support level, denoting a resurgence of sellers or profit-taking.

Bitcoin price shows a tight range formation after rallying for a month. This pause is being seen across Ethereum and Ripple price, but not all altcoins. Some cryptocurrencies are rallying without a stop; so investors need to exercise caution as this house of cards built over the last month could come crumbling down.

Also read: Will the Fed Interest Rate Decision spell disaster for Bitcoin price?

Bitcoin price needs to cool off

Bitcoin price has inflated 45% in the last month and is currently hovering around $23,000. A breakdown of the risk and support trend line at roughly $22,800 will signal a bearish outlook. Such a development could see BTC retrace to the 50-day Exponential Moving Average (EMA) at $21,231.

Beyond this level Bitcoin price could tag the 100-day and 200-day EMAs at $20,087 and $19,460, respectively.

BTC/USD 1-day chart

While the outlook looks bearish, a daily candlestick close above the $25,000 psychological level will invalidate the pessimistic outlook for Bitcoin price. Such a move could trigger a run-up to $28,000 or $30,000 resistance levels.

Ethereum price ready to make a move

Ethereum price has shown weakness long before BTC did. A prime example of this is January 21, which is when ETH formed its top and market a reversal. However, for Bitcoin price this happened a week later.

Regardless, a breakdown of the $1,512 will confirm the start of a bearish descent and potentially knock Ethereum price to $1,429 and $1,331 support floors.

ETH/USD 1-day chart

ETH/USD 1-day chart

On the other hand, if the markets are going to remain bullish, Ethereum price needs to flip the $1,679 hurdle into a support floor and continue making higher highs. In such a case, ETH could tag the $1,820 and $2,000 blockades.

Ripple price at inflection point

Ripple price followed the Bitcoin and Ethereum duo but at a much slower pace. As a result, XRP price rallied only 30% and is already taking a U-turn. After forming a local top at $0.433, the remittance token has now pulled back to retest the $0.400 to $0.381 support barrier.

A breakdown of $0.381 will confirm the start of a sell-off and is likely going to drive Ripple price to retest the $0.331 support level.

XRP/USD 1-day chart

XRP/USD 1-day chart

While things are looking bad for Ripple price, a daily candlestick close above $0.448 will confirm the presence of bulls. Such a move will further propel XRP price to retest the $0.471 hurdle.

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