• Bitcoin price is in a difficult position as it eyes a retracement before heading to $50,000.
  • Ethereum price eyes the $4,000 psychological level after massive consolidation.
  • Ripple price ponders 50% ascent to $1.67 as consolidation continues.

Bitcoin price is currently experiencing a choppy action, while Ethereum and Ripple prices are undergoing consolidation. However, ETH and XRP might have a higher return than the big crypto since they are coiling up at crucial levels and might experience a potential upswing.

Bitcoin price eyes a higher high

After a recent crash, bitcoin price is currently consolidating under the 50% Fibonacci retracement level at $47,216. This descent might continue to head lower and retest the high probability reversal zone ranging from $45,309 to $46,427.

The 70.5% Fibonacci retracement level at $45,868 could be a perfect spot or reversal as it coincides with the demand zone extending from $44,705 to $46,031. Investors can expect a resurgence of buying pressure around this barrier, which pushes the big crypto to the resistance level at $49,024 and, in some cases, the $50,000 psychological level.

A decisive 6-hour candlestick close above $51,483 will confirm the start of a new uptrend that could usher Bitcoin price up to $56,361.

BTC/USDT 6-hour chart

Regardless of the bullish outlook, a breakdown of the $45,309 support level and failing to reclaim it will set up a lower low and suggest a lack of bullish momentum. However, a breach of the $43,927 demand barrier will invalidate the upswing narrative and opens up the possibility of a more significant downward move.

Ethereum price coils up for a massive move

Ethereum price exhausted its buying momentum as it sliced above the $3,000 psychological level and has been consolidating since then. While the $3,087 support level has been holding up well, the incoming downswing might retest this barrier.

This consolidation is the primary reason for an upswing, but if the big crypto lifts off, there is a high chance ETH might easily break through a formidable resistance level at $3,375. Beyond this, the smart contract token needs to rally and claim the $3,716 supply barrier to have a shot at retesting the $4,000 psychological level.

ETH/USDT 1-day chart

ETH/USDT 1-day chart

While things seem to be indecisive, a failure to break through $3,375 will indicate that there is a lack of bullish momentum. If the bearish momentum pushes Etheruem price to slice through $2,893, it will invalidate the bullish thesis.

Ripple price contemplates 50% upswing

Ripple price rallied 92% from August 5 to August 15 and set up a swing high at $1.35. After setting up a local top at $1.35, the bullish momentum seems to have waned, which resulted in forming lower highs with equal lows.

Connecting trend lines with these swing points results in the formation of a descending triangle pattern.

Considering the positive outlook of the big crypto and the general cryptocurrency market, investors can expect a higher move. A decisive close above the upper trend line at $1.19 will confirm a breakout, but a swift close above $1.33 will indicate the start of a new uptrend.

In such a case, XRP price might rally another 25% to tag the resistance level at $1.67. In total, this upswing would constitute a 50% upswing from the current position.

XRP/USDT 12-hour chart

XRP/USDT 12-hour chart

Although the current bias is bullish, things could switch up quickly if Bitcoin price closes below crucial support levels. If such a move were to happen, altcoins, including XRP, could experience a downswing.

A breakdown of the $1.05 support level will indicate increased sellers and invalidate the bullish thesis. In some cases, Ripple might retest the $0.92 demand barrier.

 

(Excerpt) Read more Here | 2021-08-31 12:00:00
Image credit: source

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