Crypto market bleeds after Bitcoin’s rejection at $52,000
- Bitcoin ran into a colossal barrier at $52,000 due to the formation of a double-top pattern.
- Ethereum is getting ready for a move to $1,895 if the H&S pattern neckline support remains intact.
- Ripple could break out to $0.53 if the bulls can push beyond the ascending triangle’s x-axis.
The cryptocurrency market is still suffering from the impact of Bitcoin’s rejection of $52,000 for the second time in less than two weeks. Declines are likely to gain momentum, with BTC already trading under $50,000.
The majority of cryptoassets in the top 50 are in the red, led by altcoins such as Cardano, Binance Coin, Polkadot, and Solana. Ethereum could not sustain the uptrend above $1,600, leading to losses toward $1,500. Similarly, Ripple is seeking support at $0.44 after hitting a barrier above $0.45.
Bitcoin retreat seems unstoppable
Bitcoin’s recent upswing above $50,000 turned out to be another bull trap. This tricked investors into believing that the ultimate rally of $58,000 (record high) had commenced. However, the momentum lost steam on breaking slightly above $52,000, allowing a double-top pattern.
A correction ensued due to the massive selling orders triggered at this level. Bitcoin bulls are struggling to secure higher support. Meanwhile, the pioneer cryptocurrency is doddering at $49,400. Support is anticipated at the 100 Simple Moving Average on the 4-hour chart, but if push comes to shove, Bitcoin may freefall toward $43,000.
BTC/USD 4-hour chart
On the upside, regaining ground above $50,000 will be a huge bullish signal. Moreover, a daily close past the 50 SMA could bring stability as bulls focus on pushing the price higher toward $58,000.
Ethereum rebounds for a 23% move
Ethereum has been rejected at $1,650, leading to a correction. Intriguingly, the retreat has tested the neckline of an inverted head-and-shoulders (H&S) pattern on the 4-hour chart. The pattern is bullish and usually foresees a rapid price increase. Testing the neckline support is particularly bullish for ETH, and if support is defended, a rebound could set out for a move toward $1,895.
ETH/USD 4-hour chart
It is worth noting that the breakout may fail to materialize if Ethereum slices through the neckline support. On the downside, the 100 SMA is in line to provide additional support. However, selling orders could surge considerably, forcing Ether downhill to $1,400 and $1,300 anchor levels.
Ripple on the brink of a 15% spike
The cross-border cryptocurrency is closing in on a key technical breakout point. This follows the formation of an ascending triangle pattern. Note that the triangle is a technical bullish continuation pattern.
However, it has to meet certain conditions, for instance, having a trendline connecting a series of higher lows and a horizontal line (x-axis) linking the horizontal peaks. It illustrates that bulls are getting stronger as the price forms a higher low pattern.
A breakout is foreseen at the x-axis, whose outcome is a rapid upswing. Moreover, an ascending triangle forms in a generally up-trending market. Ideally, the pattern starts to take shape as the market consolidates.
As the price rises gradually, buyers intensify positions while sellers lose traction. A breakout equal to the distance between the highest and lowest triangle points occurs after the price slices through the x-axis. In this case, XRP could rally to $0.53, which could jumpstart a major upswing toward $0.75 (yearly high).
XRP/USD 4-hour chart
A breakdown of the same magnitude as the breakout to $0.53 will occur if Ripple fails to break the resistance immediately ahead. Support at the 100 SMA will come in handy, but if declines stretch further, XRP will explore price levels under $0.4.