BTC remains in pole position, but XRP is leading a new altcoin fee

  • Bitcoin price marks the 50% Fibonacci retracement of the April-June correction at $ 46,849 after closing on August 9 with a bullish day outside.
  • Ethereum price surpasses the critical resistance area and is now targeting the 61.8% Fibonacci retracement of the May-June correction at $ 3,358.
  • XRP price detects support from the previous resistance and propels the altcoin towards the primary price target of $ 1.00.

Ethereum price and XRP are unlocked from resistance levels, which gives them support and aggressively pursues higher prices. In contrast, Bitcoin price hits a new rally milestone with a daily close above the 200-day Simple Moving Average (SMA) at $ 44,985.

Cryptocurrency investors now have to take into account that the three crypto majors have a high probability of a correction process, either in terms of time or price. In the medium term, however, it remains optimistic, as everyone overcomes technical turning points relatively easily.

The hunt continues as the Crypto Fear & Greed Index has reached remarkable levels

The Crypto Fear & Greed Index published by Bybt.com has risen to over 70, putting the index value in the upper percentile (greed), dating back to early 2018 and suggesting that a temporary high could soon emerge.

The index focuses on Bitcoin and takes into account five factors: volatility, market dynamics / volume, social media, surveys, dominance and trends. The aim is to get a real-time overview of the behavior of the cryptocurrency market in terms of emotional reactions to the price. For example, extreme fear can signal a buying opportunity, while excessive greed predicts a market for a correction.

Crypto Fear and Greed Index – Bybt.com

It is important to understand that the index is not a timing tool, but rather a measure of the sentiment of Bitcoin and, by extension, the broader cryptocurrency complex.

Still, Bitcoin’s dynamic separation of relevant resistance levels coupled with increasing momentum on Altcoins suggests that the market may be getting a bit foamy.

Bitcoin price distracts leadership but may pull back

Bitcoin price is up nearly 57% in the past 22 days, which is one of the better 22-day returns since 2018, placing the leading cryptocurrency above the strategically important 200-day SMA at $ 45,120. It’s an impressive return after BTC saw an off-week upward move on the 50-week SMA bar charts in late June.

In the short term, Bitcoin price faces overbought conditions based on the daily Relative Strength Index (RSI) and heightened bullish sentiment according to the Crypto Fear & Greed Index. Additionally, BTC has to tackle technical resistance represented by the 50% retracement of the April-June correction at $ 46,849 and the April 25th low of $ 47,044.

The emerging bearish momentum divergence on the intra-day charts is contributing to the potential for a BTC pullback, as the RSI failed to confirm the latest Bitcoin price high.

BTC / USD 9 hour chart

BTC / USD 9 hour chart

The depth of a BTC correction process should be limited to the previous trifecta of resistance between $ 41,322 and $ 43,106 and reinforced by the 38.2% retracement of the April-June correction. The total pullback would be close to 12% of the current price.

However, if Bitcoin price does not find support in the range given above, BTC is at risk of severe correction which will converge the 29th of the current price.

BTC / USD daily chart

BTC / USD daily chart

Bitcoin price may choose to extend the rally and discard the resistance. If so, the new layers of resistance at the 61.8% and 78.6% retracement levels are at $ 51,109 and $ 57,173, respectively.

Bitcoin price is at a tipping point, but the magnitude of BTC momentum has revitalized the altcoin market, increasing investor risk appetite and expanding market participation.

Here, FXStreet analysts are evaluating where BTC could go next as it is on stable support with no resistance.

The Ethereum price rewrites the definition of relentless

The 82.68% rally in Ethereum price over the past 22 sessions is starting to hit levels posted earlier this year and is in line with 2018-2020 numbers, suggesting an overbought condition.

Equally noteworthy is that Ethereum price closed with only three negative sessions in the past 22 days, including one session that closed on a Doji candlestick pattern and a loss of only -0.64%. The intransigence of the rally did not offer potential ETH investors many opportunities to enter the market.

Nonetheless, a continuation of the uptrend could soon be thwarted by a bearish momentum divergence on the intraday charts, which alerts ETH investors to a position for a period of weakness.

BTC / USD 9 hour chart

ETH / USD 9 hour chart

The near-term upside could be limited to the 61.8% retracement of the May-June correction at $ 3,358, which coincides closely with the May 19 collapse high at $ 3,444.

ETH / USD daily chart

ETH / USD daily chart

A retreat by ETH is well supported by the previous resistance between $ 2,913 and the 50% retracement level at $ 3,042, which is an 11% drop from the current Ethereum price.

The inability to stabilize in this area poses a challenge for Ethereum price as support first emerges at the June 15 high of $ 2,640 and then on July 7th at $ 2,411. It would be a huge setback for ETH, but an unlikely scenario.

Regardless of the extreme bearish scenario, Ethereum price has shown the impulsiveness that equates to a true cycle low and is the foundation for new ETH highs moving forward.

Here, FXStreet analysts are evaluating where ETH could go next as it has no resistance to $ 4,400.

XRP price confirms new bull market with double-digit profit

The 76.80% surge on July 21 has pushed the daily RSI to its highest level since the April high. However, unlike Bitcoin and Ethereum, XRP price is not showing any bearish momentum divergence on the intra-day charts, suggesting that the Ripple rally is only getting stronger, not weaker, despite the extraordinary profit already logged.

Today’s 10% rise is the type of confirmation that accompanies a sustained breakout from a critical level of resistance, such as the August 7th XRP price break above the 200-day SMA.

The acceleration of the rally has raised XRP price towards the measured price target of the raised floor pattern at $ 0.953 and within another strong day after the second Ripple profit target at $ 1.00 or the third target at $ 1.06, which is from the 7. close.

The $ 1.00 to $ 1.06 range will be challenging, but if the XRP price hits, Ripple will quickly target the 50% retracement of the April-June correction at $ 1.23.

XRP / USD daily chart

XRP / USD daily chart

From a technical point of view, the XRP price rally is a legitimate end to the correction and the start of significantly higher prices. Still, the ongoing legal battle with the SEC must not be overlooked. If Ripple suffers a temporary defeat in the process, this can negatively affect the XRP price.

A message-driven reversal should find significant support in the 200-day SMA at $ 0.802 and the segment of a multi-year inverse head-and-shoulders pattern at $ 0.770.

Relentless, impulsive and convincing are three words to describe the rally of the three major cryptocurrencies since July 21st. Relentless because there were only a few days lost. Impulsive because the gains associated with progress have reached convincing levels in a short period of time. Convincing because every cryptocurrency has dismissed the resistance, which was previously viewed as a formidable resistance, with relative ease. All in all, the rally has turned into a rise with long-term bullish implications.

Here, FXStreet analysts are evaluating where Ripple could go next as it appears poised for a breakout.

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