Cryptocurrency Price Forecast for Bitcoin, Ethereum & Ripple
- Bitcoin pulling back towards support zone, but still has room before reaching it
- Ethereum relentless rise brings top-side trend-line into focus, pullback could finally be near
- Ripple fails to hold consolidation, unclear at this point how deep the decline could be
To learn more about Cryptocurrencies, check out the Introduction to Bitcoin Trading Guide
Bitcoin pulling back towards support zone, but still has room for more weakness
Bitcoin (BTC/USD) continues to slump after a failed attempt to run back to the high set in December. Relatively speaking, given the extremely high level of volatility, it wouldn’t take much of a decline to reach down into support we discussed last week. Looking lower, there is horizontal support by way of the December 30 low, but of even bigger interest is the slope running higher since May and December 22 swing-low. This critical support zone arrives in the vicinity of 11750/160. This would be an attractive spot to see BTC/USD find a bid and start pushing back higher. A break below and a much deeper decline may ensue. We’ll update on this as price action unfolds…
See how retail traders are positioned in Bitcoin and what it might mean – IG Client Sentiment page.
Ethereum relentless rise brings top-side trend-line into focus, pullback could finally be near
Ethereum (ETH/USD) rally is at risk with a top-side trend-line sitting just over today’s high. Given the extraordinary momentum in crypto’s, it’s unclear how meaningful the top-side line will be. Risk of an ‘overthrow’ (where price extends beyond the slope) is elevated. But on the flip-side, the rise from just under $500 at the December low into the $1380s does suggest it is overdone in the short-run, so the top-side trend-line may be all it takes to at least cause ETH/USD to consolidate, if not experience a sharp pullback altogether. The first line of support arrives at the trend-line off the Dec 22 low, and below there we’ll be looking to the Dec high at 863. If Ethereum is to continue trekking higher, a correction in price or time will be a welcomed event for traders looking to enter.
Ripple fails to hold consolidation, unclear at this point how deep the decline could be
When we looked at Ripple (XRP/USD) on Monday, the question we asked was, ‘high-level’ consolidation or broader pullback? The price action until yesterday looked similar to two prior occasions in December which led to higher prices. In this case, it did not. The 2.1577 level we were looking at as support was soundly broken yesterday with an acceleration lower into day. Given the parabolic rise since last month, it is unclear how much of a pullback we could see before it stabilizes. For now, taking a cautious approach until we have more to work with.
Interested in learning more? On page 4 of our Bitcoin Guide, we discuss the major fundamental headwinds for cryptocurrencies.
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.