Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin Rally Vulnerable At $40,000 As $550 Billion US infrastructure Bill Brews Concerns
- Bitcoin price explores levels under $40,000 following a rejection from $42,000.
- The new infrastructure bill in the US targets $29 billion from crypto tax.
- Ethereum price gains traction toward $3,000 as the London hard fork launch approaches.
- Ripple price must secure support above $0.75 to validate the uptrend aiming for $0.8 and $1.
The previous week closed on a positive note led by Bitcoin’s surge to $42,000. Most crypto assets started August in the green, such as Ethereum’s liftoff to $2,700. Ripple managed to hold support at $0.72 while focusing on gains above $0.8. At the time of writing, XRP is trading slightly above $0.75.
However, the situation has not been smooth for all cryptocurrencies. Altcoins such as Dogecoin and Cardano have remained relatively unchanged through the weekend. DOGE is pivotal at $0.2 while ADA teeters slightly above $1.3.
Bitcoin price Corrects From $40,000 Amid Concerns Over US Infrastructure Bill
Bitcoin has, in the last couple of weeks, put up an impressive recovery mission. However, the rally treads on shaky grounds following a new infrastructure bill in the US.
The flagship cryptocurrency enhanced its upward movement last week, closing Friday above $40,000. The bullish leg stretched further, stepping marginally above $42,000 on Friday. Bitcoin’s upswing was a ray of hope, breaking the sluggish summer price action.
Nonetheless, the uptrend has quickly diminished as the industry keenly dissected the $550 billion US infrastructure bill. The news of bill has seen BTC slump under $40,000 to trade at $39,530 at the time of writing.
The downward reaction of Bitcoin price to the bill could only be the tip of the iceberg. If passed to become law, the crypto industry in the US will have to bear an enormous tax burden. The proposed bill is looking forward to collecting around $28 billion from crypto tax. However, it is not clear who is specifically targeted to contribute to the tax budget.
Meanwhile, industry leaders foresee a drive for platforms such as exchanges, decentralize finance DeFi) protocols and other crypto establishments to provide the IRS with customer information.
As questions arise over the infrastructure bill, Bitcoin is testing the ascending triangle’s lower boundary support. The 50 Simple Moving Average (SMA) on the four-hour chart provides the much-needed immediate support.
The Moving Average Convergence Divergence (MACD) indicator has a vivid bearish picture. With the divergence between the 12-day EMA and the 26-day EMA widens, the odds for a bearish outlook soar. Besides, Bitcoin closing the day below mentioned support areas would be a massive bearish signal. Perhaps the correction will extend to $38,000 and $36,000.
BTC/USD four-hour chart
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Ethereum Price Could Soon Close The Gap To $3,000
Ethereum price continues with the uptrend from last Friday after securing support at $2,300. On the upside, a break above $2,400 (the previous stubborn barrier) triggered massive buy orders, boosting Ether past $2,600. The most prominent smart contract token brushed shoulders with $2,700 before retreating to confirm support at $2,500.
Meanwhile, Ethereum is dancing at $2,580 while immediately supported by the 200 Simple Moving Average (SMA). Another upswing is expected to test the seller congestion at $2,700 before Ethereum charts the path to $3,000.
ETH/USD four-hour chart
It is worthwhile for investors to keep in mind that the anticipated Ethereum London hard fork will debut on August 4. This upgrade is supposed to revolutionize the Ethereum blockchain ahead of Ethereum 2.0, expected to become fully operational toward the end of 2022. Therefore, Ether can hit levels above $3,000 before the week comes to an end.
Check Out: Is it Better to Invest or Trade Ethereum?
Ripple Price Uptrend Holds Steady Toward $0.8
Ripple has a fair share of news last week as it lifted from $0.62 to highs around $0.78. Investors got excited following an announcement that SBI Remit has launched a new remittance corridor between Japan and the Philippines using the On-Demand Liquidity (ODL) platform.
A correction ensued with Ripple testing support at $0.72 on Friday. However, bulls took control of the price over the weekend, bolstering XRP above $0.75.
The cross-border money transfer token is currently trading at $0.75 within the confines of an ascending parallel pattern. A renewed bullish outlook shows that gains above $0.8 are a matter of when not if.
XRP/USD four-hour chart
The RSI reinforces the bullish outlook while moving back into the overbought region. In other words, bulls are still aggressive. Trading above $0.8 might trigger many buy orders as more investors trickle in amid speculation for gains to $1. In the meantime, establishing support above $0.75 remains crucial for sustaining the uptrend.
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