BTC breathes life into altcoins
- Bitcoin price might pull back before it continues its uptrend.
- Ethereum price is facing a critical resistance level at $2,018 and might retrace before heading higher.
- Ripple price is bouncing off a demand zone ranging from $0.548 to $0.568.
Bitcoin price has shown a sign of life after a massive downtrend that pushed it below $30,000. After briefly spending time below the psychological level, BTC has bounced back, and altcoins like Ethereum and Ripple have followed it.
Bitcoin price needs to take a breather
Bitcoin price surged roughly 12% from the July 20 swing low at $29,279. While this uptrend is impressive, a retracement to the $31,000 support level seems likely. A resurgence of buyers will allow BTC to overcome $33,185 and tag $34,666.
In a highly bullish case, Bitcoin price might even retest the 50% Fibonacci retracement level at $35,618, roughly a 15% upswing from $31,000.
BTC/USDT 12-hour chart
While the bullish case seems like a no-brainer, things could go awry if the retracement breaches the support level at $31,000.
Such a move could lead to a further downswing up to $30,000. However, if the bears manage to break down this barrier, it would invalidate the bullish outlook.
Ethereum price mimics big crypto
Ethereum price is replicating Bitcoin’s moves down to a T and is currently contemplating a retracement as it tussles with the $2,018 resistance level. An 8% retracement to the $1,850 support barrier seems likely.
If this is a reversal in trend, Ethereum price should not just hold above $1,850 but kick-start a rally that will catapult ETH past $1,850 to 2,271, which coincides with the 50% Fibonacci retracement level at $2,297.
If the bulls manage to shatter this ceiling, $2,460 and $2,640 will be the next targets for bulls.
ETH/USDT 1-day chart
Regardless of the bullish outlook displayed by Ethereum price, investors need to note the high correlation of the smart contract token with BTC. If Bitcoin price fails to rally higher, ETH will likely follow suit.
A breakdown of the $1,850 level with buyers unable to reclaim it will invalidate the bullish outlook. If this were to happen, Ethereum price might revisit the range low at $1,700.
Ripple price stays ahead of the curve
Ripple price is showing bullish signs despite the cryptocurrency market leaning toward a correction. Although XRP price saw a red 6-hour candlestick that retested the demand zone ranging from $0.547 to $0.568, it is currently taking a jab at the immediate supply barrier at $0.590.
A decisive 6-hour candlestick close above this level could trigger a 6% upswing to $0.627 and, in some cases, the 50% Fibonacci retracement level at $0.647. If the buyers successfully breach $0.647, XRP price might take a jab at piercing the high probability reversal zone ranging from $0.680 to $0.727.
XRP/USDT 6-hour chart
On the other hand, if XRP price falls prey to the big crypto’s control, it is likely to retest the demand zone extending from $0.548 to $0.568.
However, if the bears shatter the range low at $0.509, it will invalidate the bullish thesis and open up the possibility of a down move that retests $0.496.