Bitcoin
Facing correction after ETFs lead rally
- Bitcoin price fails to overcome the $69,712 to $71,907 resistance area.
- Ethereum price is likely to retreat towards the key support level of $3,360.
- The rippled price could end the consolidation between $0.463 and $0.572.
The price of Bitcoin (BTC) continues to consolidate in a range that offers a buying opportunity, while other major cryptocurrencies such as Ethereum (ETH) and Ripple (XRP) appear poised for a possible price correction. ETH and XRP rose 10% and 5%, respectively, shortly after the US Securities and Exchange Commission (SEC) approved the Ethereum spot exchange-traded fund (ETF).
Bitcoin price is eyeing a rally
Bitcoin the price rose 8% on May 20, but such an impulsive move could lead to a pullback. As seen in the chart below, BTC is currently being rejected by the order block between $69,712 and $71,240, which also houses the weekly close at $71,280.
Secondary investors looking purchasing opportunities could do so at the following levels:
- The volume profile high nodes range extending from $67,090 to $66,035.
- The 100-day exponential moving average (EMA) is currently at $62,533, coinciding with the bullish order locking range between $62,985 and $61,427.
If BTC breaks above the $62,533 level, it could rise 10% to the local top formed at $69,712.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators support the aforementioned bounce, which are firmly present above their respective average values of 50 and 0, suggesting that the bulls are in control.
BTC/USDT 1-Day Chart
On the other hand, if Bitcoin price closes below $58,271, it would invalidate this bullish thesis, producing a lower low on the higher time frame, causing BTC to fall another 10% and reach the previous support level of US$52,400.
Ethereum price wants to rise
Ethereum price broke above the falling wedge pattern and the EMA 50 level at $3,144 on May 20 and is up 21%. ETH is currently being rejected by the March 12 block of bearish orders ranging from $3,980 to $4,093.
The price of Ethereum could climb up in two ways:
- A breakout above the daily block of bearish orders extending from $3,980 to $4,093, turning it into a support zone.
- ETH could pull back to the key 50-day EMA support zones at $3,558, which roughly coincides with the bullish order block extending from $3,393 to $3,119.
If the above-mentioned conditions are met, then the Ethereum Price could revisit its all-time high (ATH) of $4,868.
ETH/USDT 1-Day Chart
On the other hand, if the Ethereum journal candlestick If the price closes below the $2,864 level, it would produce a lower low and signal a break in the market structure. This move would invalidate the aforementioned bullish thesis, potentially triggering an extra 8% decline from the previous $2,600 support level.
Ripple Price Will Likely End Its Consolidation Phase
Ripple Price it is currently consolidating between $0.572 and $0.463 after a huge 33% drop in mid-April. This 46-day consolidation saw XRP form higher lows on the daily time frame, indicating a decrease in selling pressure.
If Ripple price breaks the $0.561 to $0.572 range, it could race 8% to revisit the 61.8% Fibonacci retracement level at $0.621.
XRP/USDT 1-Day Chart
However, if Ripple’s price falls below the $0.463 range, XRP will fall another 10% from its previous support of $0.419.