As a seasoned crypto investor with over five years of experience, I have weathered numerous market fluctuations and learned to navigate the complexities of this dynamic space. The recent Bitcoin price drop, despite positive ETF flows, is not surprising to me. The cryptocurrency market can be unpredictable, and short-term volatility is a regular occurrence.
1. After hitting a new high of $70,000 on Monday, Bitcoin has experienced a pullback in its gains accumulated since last week, with the cryptocurrency currently hovering around $66,000 on Tuesday. Ethereum (ETH), one of the major altcoins, dipped following Bitcoin’s sell-off, dropping 1.5% to $3,333. In contrast, Ripple (XRP) bucked the market trend and rose by 2.5%, reaching $0.6246 despite the upward pressure.
Bitcoin Price Falls Despite Positive ETF Flows
Bitcoin made a swift entrance into the market priced at around $70,000. However, doubts about the durability of this upward trend caused some hesitation among investors, hindering the full recovery. Furthermore, concerns over the US authorities transferring seized Bitcoins from the Silk Road case sparked anxiety among traders, potentially leading to selling actions as they braced for a potential mass sell-off.
After a significant decline beneath both the 20-day Exponential Moving Average (EMA) and the 50-day EMA, which are represented by the blue and red lines respectively, Bitcoin’s price settled at $66,585 in an attempt to locate new levels of resistance and buying interest.
1 Option: If Bitcoin (BTC) breaks its rising wedge pattern support, there could be a potential 14.15% drop. In such a scenario, if the downward trend continues below the $66,000 mark and the purple 200-day moving average at $64,385, traders might expect a significant selloff reaching the $60,000 level where additional liquidity may be found.
1. If the ‘wedge shape’ technical indicator maintains its strength or Bitcoin recovers above the $66,000 mark, it would nullify the current downward trend towards $60,000, thus paving the way for buyers to regain control and potentially continue the upward trajectory.
One significant factor influencing the projected BTC price for August is the consistent pattern observed in total daily net ETF investments. As per SoSoValue’s data, Bitcoin ETFs saw a substantial $124 million in net inflows on Monday, with BlackRock’s IBIT accounting for approximately $206 million.
Ethereum Bulls Fight To Defend Key Support
While Bitcoin ETFs have seen stability, Ethereum ETFs, including ETHE, have experienced continued outflows to the tune of $210 million. (Or: The trend for Ethereum ETFs contrasts with Bitcoin ETFs; specifically, $210 million was withdrawn from ETHE.)
Noted is it, though, that the majority of Ethereum ETFs reported net deposits on Monday, with BlackRock’s ETHA topping the list at a $58 million influx.
If the rate of withdrawals from Grayscale decreases substantially, this could lead to a marked change in the overall trend, potentially fostering an enhancement in market sentiment.
Currently, bulls have given up their efforts to protect the support level at $3,300, leading to the recent rebound at $3,340.
Traders should be prepared for a possible price correction back to $3,100 if the cryptocurrency fails to surpass its current resistance at the 200-day moving average.
If the bear flag pattern in Ethereum’s price action is disrupted, causing a downward break, sellers are likely to grow stronger. According to our Ethereum price projection, such a rupture could result in the price drop extending to hit $3,100.
Discovering a buy signal in the MACD indicator could shift the technical perspective favorably, potentially motivating investors to add to their existing buy positions.
Ripple Price Analysis: Why Is XRP Up Today?
The bullish argument for XRP is holding firm, while Bitcoin and Ethereum are grappling with regaining their strength post-Monday’s market turbulence. This momentum appears to have stemmed from the substantial surge in trading volume reaching $1.8 billion, as demonstrated on CoinMarketCap.
The MACD indicator’s buy signal suggested that Ripple’s price was poised for an uptrend, with buyers holding the reins and ready to push for a surge above $0.7.
1. Should XRP end the day above its immediate resistance at approximately $0.62, it’s reasonable to expect that the upward trend will remain robust in the upcoming days. Additionally, the impending golden cross could boost the odds for a price surge surpassing $0.7.
Traders need to be ready to respond if XRP falls below the $0.62 mark, which could intensify the selling pressure around the $0.6 buyer congestion area and the 38.2% Fibonacci retracement level. If the downward trend continues, the 20-day moving average at $0.5745 may be the next target on the downside. In a worst-case scenario, the potential support could lie at $0.5.
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2024-07-30 17:05