●Bitcoin price remains below the bullish confines of the ascending parallel channel with the potential for extended fall before possible recovery.
●Ethereum price could drop 5% with ETH bulls likely taking a breather before the next leg north.
●Ripple price recovery rally is still intact above the ascending trendline despite a looming 5% correction.
Bitcoin (BTC) price remains broadly bullish but continues to suffer in the wake of the past weekend’s chop as the new week starts with a US holiday. Amid GBTC redemption woes, BTC slipped below the ascending channel, where it remains as the US market commemorates the Martin Luther King, Jr. (MLK) holiday.
Meanwhile, Ethereum (ETH) price suffers the wake of an overbought asset with ETH bulls looking to revitalize as Ripple (XRP) fights to sustain a recovery rally.
Bitcoin price endures an extended weekend with downside odds prevailing
Bitcoin (BTC) price is holding above the $40,726 support after falling below the ascending parallel channel. While the slump threatened BTC’s upside potential, the big-picture outlook remains bullish as long as $30,000 is not breached.
Meanwhile, technical indicators suggest a stiff tug-of-war between the bulls and bears. The Relative Strength Index (RSI) resists the downside after crossing below the signal line (yellow band). The histogram bars of the Awesome Oscillator also hint at a transition from green to red, while the Moving Average Convergence Divergence (MACD) teases with a crossover below its signal line (orange band).
If the bears have their way, Bitcoin price could descend below $40,726, with the fall likely to extrapolate to the $37,800 range. If this level fails to hold as support, the next logical target would be the $30,000 psychological level.
BTC/USDT 1-week chart, Source: TradingView.
Conversely, with both the AO and MACD still in the positive territory, the bulls still have a presence in the BTC market. The position of the RSI at 68 also shows there is more room north before consideration of an overbought asset.
Bitcoin price could recover, pushing back into the confines of the ascending channel. Enhanced buyer momentum could see BTC flip the midline of the channel into support above the $48,000 psychological level. Such a move would pave the way for Bitcoin price to eye the $50,000 target, 16% above current levels.
Ethereum price risks bearish takeover as bulls take a breather
Ethereum (ETH) price teases with a possible correction after ETH was overbought over the weekend, indicated by the RSI trending above 70. In the aftermath, a pullback could be underway amid buyer exhaustion as the momentum indicator now appears subdued, moving horizontally.
The bears having their way could see Ethereum price descend 5% to find possible support at $2,388, levels last tested on crypto’s watershed moment, January 10. A break and close below this level could see ETH descend past $2,200 to the $2,135 support level. In the dire case, the PoS token could descend to the $1,935 support, below which the bullish outlook would be invalidated.
ETH/USDT 3-day chart, Source: TradingView.
Conversely, with the bulls still in play, evidenced by the green histogram bars of the AO and the MACD above the signal line, the Ethereum price could push north. This could see ETH clear the range high at $2,717. In a highly bullish case, the gains could see ETH record a higher high, bringing the $3,000 psychological level in sight.
Ripple price risks a 5% slump
Ripple (XRP) price continues to consolidate alongside an ascending trendline as part of a recovery rally. However, with the RSI below 50 and both the AO and the MACD in the negative territory, the odds favor the downside. With this, Ripple price could descend 5% to test the $0.5442 support.
XRP/USDT 1-day chart, Source: TradingView.
On the other hand, considering Ripple price recently tagged the Fair Value Gap (FVG) that extends from $0.4927 to $0.5111, the inefficiency in the XRP market has been filled. With there being no effective pull on Ripple price to the south, the bulls could push the price north.
Enhanced buying pressure could see Ripple price clear the resistance due to the descending trendline, bringing the $0.6500 level in sight as XRP price collects sell-side liquidity residing above the trendline. In a highly bullish case, the payments token’s market value could reach the $0.7000 psychological level, 20% above current levels.
