Crypto recovery rally has unfinished business

• Bitcoin price hints at a touch of Monday’s low of $19,541 before potentially recovering to $21,874 or even $22,693.
• Ethereum price has filled FVG to the downside at $1,461 and may be ready for a comeback.
• The Ripple price appears to be stuck between a sloping trendline and an overhead resistance level of $0.333.

The Bitcoin price shows that the recent sell-off was quickly reversed as bulls came to the rescue. This development was well received by altcoins, including Ethereum and Ripple, which have also experienced rapid recoveries.

Going forward, market participants need to exercise caution as BTC failed to complete its downside target after the recent dive.

Bitcoin price may be poised for a long squeeze

Bitcoin price fell 4.4% on August 30 and formed a double bottom at the lowest range of $19,511. This bearish move failed to sweep Monday’s low of $19,541, instead rising extremely quickly and leaving ineffectiveness.

As BTC hovers around $20,322, market participants can expect another correction, but this time with a sweep of $19,541. If so, that could be the buy signal to open a long position in anticipation of a mean reversion play targeting the midpoint of the 10 % crashed to $20,692.

Beyond this, Bitcoin price may target the imbalance, aka fair value gap (FVG) formed at $22,693. This imbalance occurs when price moves rapidly in a single direction without an efficient exchange between buyers and sellers.

BTC/USD 1 hour chart

If the Bitcoin price produces a flip of the $19,511 area low to a resistance level with a failed recovery attempt, it will invalidate the bullish recovery thesis and trigger a correction to $19,065 and, in some cases, $18,500.

Ethereum price is poised for more gains

Ethereum price has dropped to fill the FVG present at $1,461, following in the footsteps of its big brother BTC after it made a move on August 30. Not only was this move effective, but it also managed to hold the $1,527 to $1,555 support structure.

As a result, the Ethereum price may follow the major crypto’s signal and trigger another rally that could result in a revisit of the $1,722 range. Due to the Merge upgrade, ETH may extend this rally to retest the $1730 resistance level.

ETH/USD 4-hour chart

Regardless of the bullish outlook, if the Ethereum price produces a daily candlestick near the $1,420 low, it will invalidate the bullish thesis and trigger a correction to $1,280.

Ripple price must assert dominance

Ripple price is showing a lack of bullish momentum as it hovers just above a supportive trend line connecting swing lows since June 19. On the upside, XRP price has a ceiling of near-term resistance, ranging from $0.331 to $0.334, potentially boxing it. in and limit gains.

With BTC likely to pull back again and XRP likely to follow suit, investors can expect a sweep of the $0.318 level before any bullish move. The recovery from this level or a premature breakout above the mentioned resistance barrier could trigger a recovery rally in Ripple price to go back to $0.340 and then the $0.360 barriers.

XRP/USD 4-hour chart

If Ripple price produces a daily candlestick close below $0.318, but without a quick recovery, it will invalidate the bullish thesis and trigger a correction to $0.309.