Bitcoin, Ethereum, and XRP Investors Eye These Critical Support Levels

Despite the significant losses Bitcoin, Ethereum, and XRP incurred in the past 24 hours, different indexes suggest everything’s not lost yet.,

Nearly $25 billion were wiped out of the total cryptocurrency market capitalization over the past two days. The significant capital outflow triggered a market-wide correction that saw Bitcoin take a 5.3% nosedive while Ethereum and XRP plunged over 6.4%.

Despite the significant losses incurred by these digital assets, different technical indexes suggest that everything’s not lost yet.

Bitcoin Sits on Top of Critical Support Level

Since the beginning of the month, the flagship cryptocurrency has been consolidating within a narrow range, especially when looking at its daily chart. Despite the new yearly high of $12,500 Bitcoin reached on August 17, its price has been mostly contained between the $11,300 support and the $12,140 resistance level.

The lackluster price action caused the Bollinger bands to squeeze within the same time frame, indicating that a period of high volatility is underway.

Many technical analysts view squeezes as stagnation periods that are usually succeeded by notable price movements. The longer the squeeze, the more violent the breakout that follows.

The inability of this technical index to provide a clear path for the direction of BTC’s trend makes the area between the lower and upper band a reasonable no-trade zone. Therefore, only a daily candlestick close above or below any of these critical price hurdles will determine where Bitcoin is headed next.

Bitcoin US dollar price chart
BTC/USD on TradingView

Slicing through the overhead resistance would likely be followed by a spike in buy orders behind the pioneer cryptocurrency. Under such circumstances, an increase in demand could have the strength to allow Bitcoin to resume its uptrend, and advance further. Based on the Fibonacci retracement indicators, BTC may rise towards mid-June;s high of $13,870.

Bitcoin US dollar price chart
BTC/USD on TradingView

If sell orders begin to pile up around the current price levels, however, Bitcoin might break below the $11,300 support level. Turning this crucial level into resistance could be catastrophic for those betting to the upside. A downswing may trigger panic selling among investors pushing prices down to the 38.2% Fibonacci retracement level that sits around $10,050.

Ethereum Seems Poised to Rebound

Like Bitcoin, Ethereum entered a significant downtrend that has seen its price drop over 17% after it hit a new yearly high of $447.5 on August 17. Regardless of the bearish price action, the smart contracts giant appears to be stuck between the recent high and the 78.6% Fibonacci retracement level, from a macro-perspective.

Neither support nor resistance have been violated since the beginning of August, which puts a lot of significance to these hurdles. Trading within this price range poses high risks since it cannot be determined whether Ether’s trend will result in an upward or downward direction.

Ethereum US dollar price chart
ETH/USD on TradingView

It is worth mentioning that the TD sequential indicator is currently presenting a buy signal on ETH’s 1-day chart.

The bullish formation developed as a red nine candlestick and would only be validated by a spike in the buying pressure behind Ethereum. If so, this technical index estimates that the second-largest cryptocurrency by market cap could surge for one to four daily candlesticks.

Ethereum US dollar price chart
ETH/USD on TradingView

Even though Ethereum shows signs of a potential rebound, a full-blown breakout will only materialize after the $447.5 barrier is turned into support. Until then, it is reasonable to assume that Ether will continue to consolidate between the overhead resistance and the $370 support level.

XRP Is at a Make-or-Break Point

Ripple’s XRP sits at a pivotal point on its trend. The cross-border remittances token seems to have made a higher low on Jun. 27, for the first time since early 2018. The significance of this milestone relies on the fact that if prices rise above mid-February’s high of $0.35, a higher high will be made.

If this were to happen, XRP’s multi-year downtrend would come to an end, and it will mark the beginning of a new bullish cycle.

XRP US dollar price chart
XRP/USD on TradingView

Given the importance of the current price levels, investors have been paying close attention to the $0.27 support and the $0.32 resistance level. Moving past any of these hurdles will determine whether or not this altcoin is poised to enter a new bull market.

XRP US dollar price chart
XRP/USD on TradingView

In the foreseeable future, however, breaking below support may see XRP drop towards $0.25 while slicing through resistance might push it to a new yearly high of $0.39.

Emotions Heat Up in the Crypto Market

The ongoing lackluster price action displayed by the top three cryptocurrencies by market cap seems to be affecting investor’s perspective about the current state of the market. While Bitcoin, Ethereum, and XRP sit in no-trade zones, many have grown impatient and have decided to enter the market.

Such behavior got over 36,000 people wiped out of their positions in the past 24 hours, accounting for more than $140 million in liquidation across the board.

Due to the ambiguous outlook that BTC, ETH, and XRP present, it is imperative to wait for a clear break of any of the support and resistance levels mentioned above. The idea behind this strategy is to be able to have a clear picture of the direction of the market’s trend.

Those who have entered long or short positions too early have suffered the consequences of adverse price movements. Thus, self-control can prove to be a profitable strategy.

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