As a seasoned researcher with over a decade of experience in the financial markets, I’ve seen my fair share of bull runs and bear markets. The recent Bitcoin (BTC) price rally is reminiscent of the wild west, with its unpredictable nature and immense potential for profit. The drastic uptrend from Monday’s low at $49,000 to a surge toward $62,000 is nothing short of breathtaking, but as always, caution is advised when trading Bitcoin price this month.
As a researcher, I’m observing an upward trajectory in Bitcoin‘s (BTC) price, which seems to be fueling a broader market recovery. This surge has positively impacted select altcoins and Ethereum (ETH), causing their prices to jump by approximately 8%. Nevertheless, the price of Ripple (XRP) took a 5% dip following a significant run. This decline could be attributed to the ongoing legal battle it’s facing.
Bitcoin Price Rallies Amid Volatile Open Interest
The price of Bitcoin unexpectedly surged towards approximately $62,000, continuing the upward trend that began at Monday’s low of $49,000. A report from Matrixport suggests that this significant rise is due to the market becoming oversold following a massive drop in Bitcoin and other cryptocurrencies on Monday, which was the result of a crash.
According to a prior forecast about Bitcoin prices, the upcoming release of U.S. inflation data could potentially fuel further growth towards $70,000. If the inflation figure turns out lower than expected, it might influence the Federal Reserve’s interest rate decision, possibly leading to a reduction in rates. Such a move could boost Bitcoin, aiming for a new peak at around $80,000.
Although there’s been a significant increase, Bitcoin appears to be pulling back now, potentially reaching the $60,000 support level. If the downward trend continues below this point, it would suggest that investors are becoming more cautious and risk-averse.
As a crypto investor, I find myself needing to exercise extra care when it comes to trading Bitcoin this month. A substantial 65% decrease in BTC open interest across three exchanges signals potential volatility ahead. Historically, August has been notorious for lower trading volumes and reduced liquidity, which could potentially hinder price surges.
Ethereum Price Stalls as Bearish Signals Loom
On Thursday, the price of Ethereum made another attempt to reach the $3,000 milestone after briefly dipping below $2,500. Traders quickly snapped up Ethereum, driven by a buy signal from the Moving Average Convergence Divergence (MACD), which fueled this upward trend.
Stocks surmounted the barrier at $2,700 effectively, but soon slowed down, indicating potential scarcity of trades or sell-offs from investors. Furthermore, the 50-day Exponential Moving Average (EMA) restricts further price growth beyond $2,700.
In simpler terms, if a bear flag pattern confirmed within a four-hour time frame, it might make things tougher for the optimistic buyers, potentially causing a 18% decrease that could take prices below the upward trendline’s support line.
In simpler terms, the predicted price level is halfway between us and where the current trend started, lying beneath that starting point. If this Ethereum prediction comes true, we can expect another test of the $2,000 price mark.
Maintaining a strong position above the $2,600 mark or within the channel’s central region contradicts the bearish forecast, giving bulls an opportunity to accumulate more resources for a potential surge towards $3,000. The 20-day Exponential Moving Average (EMA) serves as a crucial point of focus. If the downtrend becomes more pronounced, this EMA will offer support to the ETH price at approximately $2,566.
Ripple Price Rally Reverses As OI Plunges
On Thursday, the price of Ripple surged by over 20% following Judge Analisa Torres’ decision to dismiss the prolonged legal action against the Securities and Exchange Commission (SEC). In this lawsuit, Ripple emerged victorious, as XRP was no longer deemed a security due to the judge’s ruling. However, the company must settle a $125 million fine in the process.
The price of XRP surged beyond $0.6 and attempted to break through the resistance at $0.64, but a subsequent downtrend ensued. Potential triggers for this drop below $0.6 could be a 8% decrease in 24-hour Open Interest (OI), as indicated by Coinglass data, along with profit-taking and insufficient liquidity.
In simpler terms, when the MACD indicator suggests a future sell signal, it means there’s a potential for prices to drop towards the $0.55 level, which is a strong support identified by the 200-day EMA. Given the current unpredictability, this downtrend might prolong and reach $0.5.
In simpler terms, if the price drops to approximately $0.58, bulls (those who expect the price to rise) are planning their next push for a significant increase up to around $0.7. The 20-day Exponential Moving Average (EMA), currently at about $0.5752, may help strengthen this anticipated upward trend.
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2024-08-09 16:43