Bears sharpen their knives as the market’s support for pain
- Bitcoin price loses retaliation fuel. A 25% decline could be within reach for market bears.
- Ethereum price may succumb to a sweep-the-lows event in the coming days
- The XRP price shows slightly different technical characteristics compared to the other two cryptocurrencies
The crypto market is losing ground in terms of a bullish counterstrike. The bear rally witnessed earlier in the month has formed a bearish pennant-like formation on Bitcoin and Ethereum, which could spell bad news for the rest of the market. The resolution of the bearish overload zone is likely to happen soon.
Bitcoin price remains on the back foot
Bitcoin price appears regarding technical conditions during the third trading week of November. After the sharp decline witnessed earlier in the month, the expected rebound many traders were hoping for has succumbed to a bearish stronghold. A classic pennant formation appears near the newly established monthly lows. If the technicals are correct, the BTC price could experience an explosive move to the downside in the coming days.
Bitcoin price is currently trading at $16,704. On November 16, the bears rejected entry to the $17,000 barrier using the 8-day exponential moving average. Like several altcoins, the peer-to-peer digital currency remains mired in oversold territory on the Relative Strength Index.
Using classical analysis, a projection can be made from the pennant-like formation. If the technicals are correct, bearish targets lie at $14,000 and potentially $12,750. Invalidating the bearish idea is a break above the $18,250 thrust candle. If the level is marked, the bulls could produce a countertrend spike back to $20,000. Bitcoin price will rise by 23% if the invalidation scenario occurs.
BTCUSDT 1-Day Chart
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 faces resistance
Ethereum price struggles to stay afloat during the third trading week of November. After a 35% decline on the month, the bulls have been persistent in their attempts to rally higher. Still, the bullish attempts appear to be exhausting underlying support in the market. If market conditions persist, a weakening of the newly discovered monthly lows near $1,080 could occur.
The Ethereum price is currently auctioned at $1,214. The auction price remains depressed below an 8-day exponential moving average. A classic bearish shooting star pattern was established on the daily chart, solidifying the idea that the ETH price is heading lower. Like BTC, the volume profile indicator remains sparse, suggesting that bulls are hesitant to remain in the market.
If market conditions persist, ETH’s next target would be $1,080. A second capitulation target would be near the summer low of $880.
Invalidation of the bearish thesis is possible if the bulls can regain the $1350 swing. In doing so, an additional rally towards the 21-day simple moving average of $1,450 would be a scenario on the table. Such a move would result in a 20% increase from the current Ethereum price.
ETHUSDT 1-Day Chart
In the following video, our analysts dive deep into the price action of Ethereum, analyzing key market interest levels. -FXStreet Team
XRP price went to $0.32 or back to $0.46
The XRP price, unlike the other two top cryptocurrencies, has shown much more retaliation during the recent bear rally in November. The digital remittance token has yet to complete a pennant formation and is hovering higher than the newly won monthly low compared to the other two coins. The XRP price can either be a leading indicator or a laggard that will experience stronger bearish price action in the future.
XRP is currently auctioned at $0.37. The bulls have broken above the 8-day exponential moving average (EMA) and are retesting the indicator for additional support. A rally towards the broken support zone at $0.46 will be the next target if the bulls can sustain themselves. However, a closing candle on the daily chart below the 8-day EMA would spell bad news. A test of the area low near $0.32 is likely to occur due to the break.
There are several ways traders can approach the digital transfer token in the coming days. Invalidation of the bearish thesis targeting $0.32 could happen if the bulls prevent the $0.46 barrier. By doing so, an additional rally towards the monthly high near $0.51 could occur. XRP would rise by 33% if said price action were to happen.
On the contrary, the bullish thesis targeting $0.46 depends on swing lows of $0.316 as support. A sweep of the lower ranges could send XRP into new yearly lows targeting $0.26, a 2020 overload zone. Such a move would result in a 35% drop from the current XRP price.
XRPUSDT 1-Day Chart
In the following video, our analysts dive deep into the price action of Ripple, analyzing key market interest levels. -FXStreet Team
