Bitcoin price set up a higher high on the daily chart, and the current retracement is likely to confirm whether bulls are ready or not for a run-up. Ethereum and Ripple show different setups but ultimately will follow in the big crypto’s footsteps.
Bitcoin price sliced through its 50-day Simple Moving Average (SMA) on February 9, establishing a higher high at $45,956. This move exhausted the bullish momentum, however, and is currently undergoing retracement.
If the resulting downswing produces a higher low, it will set the scene for a bullish swing. The daily demand zone, stretching from $36,398 to $38,895, is where BTC is likely to set up a higher low, confirming a bullish outlook, and investors can expect the big crypto to see a reversal around this area.
BTC/USD 1-day chart
On the other hand, if Bitcoin price produces a daily candlestick close below $36,398, it will shatter the demand zone and see price make its way to the weekly support level at $34,752. A daily close below this level will invalidate the bullish thesis and trigger a potential correction all the way to $29,100.
Ethereum price rallied 41% in two weeks and set up a lower high at $3,284 as it encountered the 50-day SMA. A 10% downswing followed rejection by the SMA, and saw ETH fall to where it currently trades – above the $2,823 support level.
Investors can expect ETH to sweep below this barrier before a directional bias is established. As long as the smart contract token stays above the weekly support level at $2,324, bulls can flourish.
ETH/USD 1-day chart
If Ethereum price produces a daily candlestick close below $2,324, it will create a lower low and suggest the continuation of the downtrend since November 10, 2021. In this case, ETH could revisit $1,730 and collect the liquidity resting below it.
Ripple price exploded to $0.911 after it broke out of its two-week consolidation. This 55% ascent has since retraced by almost half, falling back to the 50% retracement level at $0.731 – but not quite, suggesting that buyers are still in control.
If Ripple price retraces lower, the daily demand zone, extending from $0.595 to $0.632, will absorb the incoming selling pressure. This will probably lead to a reversal, setting a higher low and indicating the start of an uptrend.
If the buying pressure continues to build up, XRP price will revisit the $1 psychological level and collect the buy-stop liquidity resting above it.
XRP/USD 1-day chart
A daily candlestick close below $0.546 will create a lower low, invalidating the bullish thesis. In this case, Ripple price will tag the $0.518 support level and collect the sell-side liquidity below it.
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Cardano price has been on a downswing for the past month and has revisited a crucial support level twice in this range. A breakdown of this barrier could lead to a steep correction to levels last seen a year ago. Cardano price set up a higher high at $1.64.
XRP price could be headed lower as sentiment fails to shift bullish, putting Ripple at risk of a 10% fall toward $0.70. The prevailing chart pattern suggests that the cross-border remittance token could continue to consolidate.
Bitcoin price dropped below a critical Ichimoku level on Thursday and extended the drop throughout Friday and Saturday. However, this pullback is probably due to a return to equilibrium within the Ichimoku Kinko Hyo system.
MATIC price has been on a downtrend since December 27, 2021, and has shown no signs of a reversal so far. The recent uptrend, albeit promising for a while, failed to set up a higher high.
Bitcoin price is at an inflection point of its recent uptrend and is likely to reverse and establish a directional bias. If BTC sets a higher low, there is a good chance the rally will continue; else, investors can expect a steep correction.
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