No Band Aid As Cryptocurrency Markets Bleed

  • Bitcoin price is at risk of falling below $20,000 as the cryptocurrency is in the crossfire.
  • Ethereum price sees bulls in the trenches while bears pull out big guns.
  • XRP price is set to erase all gains from the past two years and trade below $0.20.

The price of Bitcoin, Ethereum and other cryptocurrencies is bleeding, and global markets are reluctant to offer any aid or bandage to stem the bleeding. Investors are turning their backs on cryptocurrencies as the markets go through a storm, with the stock market correction being the main cause of the turmoil. With the cryptocurrency in the chopping block, expect to see more losses this weekend as support levels remain far away.

Bitcoin price is at risk of sliding below $20,000 for the first time since 2020

Bitcoin (BTC) price is dropping like a stone as gravity appears to be pushing BTC price downwards in search of support. Where Isaac Newton had a headache after the apple fell on his head, investors must be suffering from a migraine after the forces of gravity hit the crypto markets. Although the bitcoin price on a weekly basis is not printing its worst performance yet, the correction is enough to accelerate capital outflows as investors flee riskier assets.

BTC price is currently under the $25,000 mark and is now set to see more bleeding as more and more investors withdraw their funds. This outflow of capital will only increase moves to the downside as buy and ask prices diverge further away from each other, resulting in more significant moves, in this case, to the downside. We expect to see some upside resistance around the monthly S3 near $24,688, but once that breaks completely, the path is clear for a 25% drop towards $19,036.22, below $20,000.

BTC/USD weekly chart

With this market reshuffle, it is only a matter of time before the tipping point is reached and the markets reverse. With the Relative Strength Index (RSI) trading in the oversold territory, the bears have lost the compass for deciding when to take profits, and as a result, there may be a turn around soon. Expect the bitcoin price to rebound to $30K – not immediately, but after testing $28,695.13 for the first time, following the golden rule which states that as a previous support level, it is set to become resistance.

$1404 Ethereum price lined up as a last resort to avoid a crisis

The price of Ethereum (ETH) appears to be repeating its worst week in the past year, which occurred around May 17th. ETH price is already losing about 25% for the week, with more losses set to be booked by the end of the week as investors flee the scene. With cryptocurrency capital outflows rising, the swamp is draining, and it’s hard to say when the bottom will be reached, as all technical indicators point to severe oversold moves.

ETH price is still currently trading in a distribution area already discussed in the past, between $1,841 and $1,720. At the moment, this distribution area is still holding and buying supports the price action. Should more dollar strength emerge, along with capital outflows, it could be the knockout blow that upsets KO investors and sends ETH price down towards $1404, the last line of defense before it starts trading below $1,000 and sparks an existential crisis .

ETH/USD weekly chart

ETH/USD weekly chart

With bearish moves comes opportunity, and a lot of traders – not the faint-hearted of course – will be extending some of the price action at these historic lows. By doing this, sooner or later the price action will need to bounce back as the bears will want to take profits sometime soon. This way, the rubber band gets some stress relief, unwinds under a larger buying volume and will see a return of around $2,200 or $2,400 next week.

XRP Price Set to Halve with 50% Drop on the Cards

Ripple price (XRP) sees bulls giving way to bears as downside pressure becomes unmanageable. A technical bearish death cross has formed, along with the maximum offered by the 55-day SMA, the red descending trendline and the fact that for five consecutive weeks, the price action has not been able to close above the monthly pivot level, it seems that investors have enough of ETH price trading based on trial and error. There are many more reasons not to invest in the Ripple price than to invest.

XRP price will either be able to hold around $0.3616, or if a weekly close occurs below this level, expect to see another leg lower towards $0.1729, which will pull the XRP price back below $0.20. This means that the price of XRP will halve again and, in total, it will have lost 90% overall from around $2.00 all the way to $0.20. The cold shower that traders and investors are going through at the moment is likely to lead to some antipathy or mistrust that will keep big investors away for some time.

XRP/USD weekly chart

XRP/USD weekly chart

A weekly close above $0.3616 would be good for sentiment and could see moderate buying all the way to $0.4974. Although still weak, it is possible that a rebound rush could trigger once stocks pare gains again. A rally or several winning moves in stocks could create a tailwind for the cryptocurrency that would push the price of XRP even to $0.70.

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