Here’s what to look out for for the rest of Q4

  • Bitcoin is showing a gap between the summer lows and the newly established low of $15,632.
  • Ethereum price is up 20% after freefalling earlier in the week.
  • XRP price may be range-bound for the rest of the year.

The cryptocurrency market gives investors and traders a chance to speculate on the next directional movement. As the clock ticks towards the highly anticipated/nostalgic Q4 Christmas rally, the top 3 cryptocurrencies are showing subtle signs of optimism. Key levels have been set to predict possible outcomes for the Crypto giants in the coming weeks.

Bitcoin price is showing promising signs

Bitcoin price is once again in a make-or-break situation. After a 25% drop, the peer-to-peer digital currency managed to recover 16% of its market value. As a profit-taking consolidation develops near $17,000, investors are forced to ask a central question. Is the current BTC price a discount before a stronger countertrend rally or an attractive trap before the downtrend continues?

The price of Bitcoin is currently $16,718. The 25% decline printed a new one-year low at $15,632. The Relative Strength Index shows a bullish divergence between the recently established low and the June 18 low, which held as support throughout the summer. The Volume Profile indicator shows that investors are more interested in the market than they were during the summer.

BTC/USDT 1 Day Chart

Given the RSI divergence and the increase in volume, Bitcoin is likely to witness a flurry of volatility. If the divergence continues, the price of Bitcoin could challenge the newly established bears near $20,000. A second target could be summer liquidity levels near $23,400.

Still, calling a market bottom on an intermediate, weekly or longer term is always the most dangerous trade. Traders should consider applying sound risk management techniques to minimize losses when trying to hold the knife.

A bullish idea invalidation is a violation below $15,900. If the level is ticked, new lows are likely to be breached and a further decline towards 2020 liquidity levels in the $14,000 zone is likely to be Bitcoin’s next downside. A bear scenario would result in a 15% drop from the current market value.

In the video below, our analysts take an in-depth look at Bitcoin’s price action, analyzing key interest levels in the market. -FXStreet Team

Ethereum price pulls back

Ethereum price witnessed a 25% drop in the second week of November after the positive US CPI announcement. Before the move, ETH witnessed a penny drop from the Eiffel, which briefly took prices below $1,100. While Bitcoin is showing bullish signals, Ethereum has subtle signs that bullish traders should exercise more caution.

Ethereum is trading at $1,276 as the market consolidates below the recently broken support zone established between September and October. The bulls were able to pull out a daily closing candle to the broken support zone, which is a positive note. A Fibonacci retracement tool covering the strong part of this week’s decline shows that the bulls are already up 50%. Therefore, the ETH price may be limited by higher gains. The next target will be the 61.8% level at $1362. If ETH and the level meet again, traders should expect a profit-taking reaction at the Fib level.

Again, a 2.5-1 reward-to-risk ratio can be achieved by targeting the 61.8% Fib level. The trade idea would require the current consolidation to withstand bearish pressure without breaking the daily low at $1,201. A retest of the recent lows near $1,080 could occur if the insecurity level is breached. Such a move would result in a 15% drop from the current Ethereum price.


ETH/USDT 1 Day Chart

In the video below, our analysts take an in-depth look at Ethereum’s price action, analyzing key interest levels in the market. -FXStreet Team

XRP price may range

XRP price is currently trading at $0.38. On November 10, the bulls achieved an 18% recovery rally. The rally created a huge bullish rally, a few integers short of the $0.40 price level on the daily time frame. The Relative Strength Index (RSI) shows that the November 9 low of $0.3160 ​​is oversold from the June 13 low of $0.3012. This subtle information shows that XRP has major strength and could be the catalyst to challenge the newly established bears in the market.

The XRP price could potentially fluctuate between $0.32 and $0.56 for the rest of the fourth quarter. If bulls can recapture the $0.50 zone, liquidity levels as high as $0.66 could be challenged, but traders should take things one step at a time. If the market has any upside potential, the June 13 divergent low of $0.30 should remain intact. Further downside towards 2020 liquidity levels near $0.26 is possible if the uncertainty level is noted. Such a move would result in a 35% drop in XRP’s current market value.


XRPUSDT 1 day chart

In the video below, our analysts take an in-depth look at Ripple’s price action by analyzing key levels of interest in the market. -FXStreet Team

Source link