What to consider for the rest of Q4
- Bitcoin is showing a gap between summer lows and the newly established low of $15,632.
- Ethereum price is up 20% after its free fall earlier in the week.
- The XRP price may be limited to a wide range for the rest of the year.
The crypto market gives investors and traders a chance to speculate on the next directional move. As the clock ticks towards a long-awaited/nostalgic fourth-quarter Christmas rally, the top three cryptos are showing subtle signs of optimism. Key levels are defined to predict possible outcomes for the Crypto giants in the coming weeks.
Bitcoin price is showing hopeful signs
The Bitcoin price is once again in a make-or-break situation. After a 25% decline, the peer-to-peer digital currency managed to regain 16% of its market value. As a bullish consolidation unfolds near $17,000, investors are forced to ask a key question. Is the current BTC price a discount before a stronger countertrend rally or an enticing trap before the downtrend continues?
Bitcoin price is currently trading at $16,718. The 25% decline pushed a new annual low of $15,632. The Relative Strength Index shows a bullish divergence between the newly established low and the June 18 low that held as support through the summer. The volume profile indicator shows that investors are much more interested in the market now than they have been throughout the summer.
BTC/USDT 1-Day Chart
Considering the RSI divergence and increase in volume, Bitcoin is likely to witness an influx in volatility. If the divergence plays out, Bitcoin price could challenge the newly established bears near $20,000. A second target could be summer liquidity levels near $23,400.
Still, calling a market bottom temporary, weekly, or for longer time frames is always the most dangerous trade. Traders should consider using sound risk management techniques to minimize losses while trying to catch the knife.
Invalidating the bullish idea is a break below $15,900. If the level is marked, the new lows are likely to be broken, and a further decline towards the 2020 liquidity levels in the $14,000 zone is likely to be Bitcoin’s next landing spot. The bearish scenario would result in a drop of 15% from the current market value.
In the following video, our analysts dive deep into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Ethereum price bounces back
The Ethereum price has witnessed a relief of 25% following the positive US CPI announcement during the second week of November. Prior to the move, ETH witnessed a penny-from-the-Eiffel style decline that briefly took prices below $1,100. Although Bitcoin is showing bullish signals, Ethereum has subtle signals suggesting bullish countertrend traders should use more caution.
Ethereum price auctions at $1,276 as the market consolidates just below the recently broken support zone established between September and October. The bulls were able to produce a daily closing candle back to the broken support zone, which is a positive note. A Fibonacci retracement tool surrounding the strong part of this week’s decline suggests that the bulls have already rallied 50%. Therefore, the ETH price can be limited to exceed higher gains. The next target will be the 61.8% level at $1362. Traders should expect a profit reaction at the Fib level if ETH and the level become known again.
Nevertheless, a 2.5-1 reward-to-risk ratio can be achieved by targeting the 61.8% Fib level. The trade idea would call for the current consolidation to withstand bearish pressure without breaking the daily low of $1,201. If the invalidation level is breached, a retest of recent lows could occur near $1080. Such a move would result in a 15% decline from today’s Ethereum price.
ETH/USDT 1-Day Chart
In the following video, our analysts dive deep into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
The XRP price may be territorial
The XRP price is currently auctioned at $0.38. On November 10, the bulls achieved an 18% rally. The rally established a large bullish engulfing up-bar a few integers short of the $0.40 price level on the daily time frame. The Relative Strength Index (RSI) shows the November 9 low of $0.3160 as more oversold than the June 13 low of $0.3012. This subtle information suggests that XRP has underlying strength and could be the catalyst to challenge newly established bears in the market.
The XRP price could fluctuate between $0.32 and $0.56 for the rest of potentially Q4. Liquidity levels as high as $0.66 could face a challenge if the bulls can regain the $0.50 zone, but traders should take things one step at a time. If the market has any bullish potential, the June 13 diverging low of $0.30 will have to remain unbroken. If the invalidation level is marked, a further decline towards 2020 liquidity levels near $0.26 could occur. Such a move would result in a 35% decline from XRP’s current market value.
XRPUSDT 1-Day Chart
In the following video, our analysts dive deep into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
