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Highlights
- Bitcoin price stuck and consolidating between $58,000 support and $62,000 resistance.
- Ethereum price sideways action prevails amid Bollinger bands squeezing, hinting at an upcoming breakout.
- XRP price renews bid for a breakout above $0.6, but futures traders could impede the uptrend.
Bitcoin (BTC) price remained lethargic on Wednesday after bulls went on the offensive in the last two days. Ethereum (ETH) price reflected the largest cryptocurrency movement, which could not sustain the uptrend. Meanwhile, XRP price displayed a commendable positive outlook amid readiness to extend the leg up before September.
Bitcoin Price Poised To Move Higher
Bitcoin price slipped below $60,000 after tapping out marginally above $61,000 yesterday. The largest cryptocurrency benefited from a bullish futures market, but the uptrend was unsustainable, with liquidity being an ongoing challenge in global markets.
Despite the evident downside risks, BTC price holds above the previous day’s open. With the 20-day and the 50-day EMAs likely to provide immediate support at $59,400, traders should be cautious to avoid a potential bear trap.
Based on BTC price prediction, traders anticipate a potential breakout to the upside when the coin consolidates above a crucial support area during a Bollinger bands squeeze. In this case, support at $58,000 presents buying opportunities aiming for the $62,000 hurdle, which, if broken, may pave the way for gains toward $70,000.
Traders must also temper expectations before a preliminary annual revision estimate of US nonfarm payrolls. The Fed will revise job growth from last year, which, according to economists, may arrive weaker than previously estimated. A larger downward revision could reignite inflation fears and drive investors away from risk assets like Bitcoin.
Traders cannot ignore the lack of liquidity in the market, and this situation could continue until September, when the Fed lowers interest rates. Therefore, it may be wise to prepare for DCA toward $56,000 or even $54,000, taking advantage of the dips and maximizing gains in recovery.
Ethereum Price Consolidating
Ethereum price seeks support above $2,500 amid extended sideways action under $2,800 resistance. Like Bitcoin, ETH price faces a liquidity problem accentuated by inflows drying up. SoSoValue data highlights four consecutive days of ETH ETF outflows, increasing the severity of the situation. The cumulative total net outflow volume is currently at $440.11 million.
Traders will look for a potential rebound from $2,500 support before seeking exposure to more longs. A Bollinger band squeeze and robust support could fuel the uptrend to $2,800 and clear the course to $3,000.
According to a recent Ethereum price forecast, immediate confluence resistance formed by the 20-day and the 50-day EMA may impede recovery. Moreover, losing support at $2,500 could trigger another correction to $2,400 and down to $2,200 before bulls resume the uptrend.
XRP Price Bullish Case
XRP price appeared well positioned for an immediate rally than Bitcoin and Ethereum. Although was rejected from $0.6151 level and dropped below $0.6, it sits on top of all three key moving averages including the 200-day, 50-day and 20-day EMAs.
The Money Flow Index (MFI) in the four-hour range highlights rising interest among traders as the indicator approaches the overbought region. If bulls successfully take down the congestion at $0.6 a major breakout may follow targeting $0.65, $0.7 and the coveted $1 level.
The XRP futures market is currently showcasing bearish sentiment, as indicated by the declines in volume and open interest across both futures and options contracts on Coinglass. While the technical structure remains hinged on the bullish side, the decreasing activity suggests a potential shift in investor sentiment, which may hinder further growth.
Frequently Asked Questions (FAQs)
1. Why is this week important to Bitcoin?
2. Is the Ethereum correction done?
3. Can XRP price rally to reach $0.7 in August?
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