Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC/USD eyes $45,000 as Tesla-led rally fizzles

Last Updated July 23rd 2021
6 Min Read
  • Bitcoin holds onto $50,000 support but not for long, as the technical indicators scream sell.
  • Ethereum could see a dead cat bounce after a symmetrical triangle breakdown on the daily chart.
  • Ripple needs a daily closing below the 21-DMA to negate the positive bias in the near-term.
  • The most widely traded cryptocurrencies, including Bitcoin, Ethereum and Ripple are a mixed bag on Thursday. Bitcoin is nursing deep losses incurred on Wednesday, in the aftermath of the Tesla announcement.

    The no.1 coin rose as much as $1600 and headed back towards $60,000 after the founder of Tesla Inc. Elon Musk announced that the company had started accepting BTC as a payment method. 

    Musk confirmed that he is not intending to convert the BTC tokens into fiat currency that would receive for every Tesla vehicle sold. However, the bounce was quickly faded, as the spot resumed the corrective decline amid a broad crypto selling-wave.

    Markets are also weighing in a potential cryptocurrency ban in India, especially after the cautious remarks from HashCash CEO Raj Chowdry. Chowdry said, “an Indian cryptocurrency ban would have grave implications for the future of the country’s economy, and would result in currency devaluation “of the worst form.”

    The crypto bulls seem to be little impressed by the growing institutional and retail demand for Bitcoin.

    Meanwhile, Ripple buyers continue to cheer the positive development in lawsuit vs. the US Securities Exchange Commission (SEC). Large whales have prompted a buying-spree in anticipation of a positive resolution.

    This comes after attorney Jeremy Hogan said earlier this week that the SEC unintentionally implied that exchanges that relist and allow trading of XRP would not violate any guidelines.

    With mixed performance across the crypto board, let’s see how these top traded assets are positioned on the charts.

    Bitcoin: Risks remain skewed to the downside as technical setup favours bears

    After its failed attempts to retake the $60,000 key level on Musk’s tweet frenzy, Bitcoin sellers returned with pomp and show, drowning the rates back towards the psychological $50,000 mark.

    The corrective downside extends for the second straight day on Thursday, as the no.1 coin remains on track to book the second consecutive weekly decline.

    As observed on the four-hour chart, the pioneer cryptocurrency is on its way to test a critical horizontal trendline (yellow) support at $49,831.

    Selling pressure could intensify below the latter, opening floors towards the next static (orange) support at $47,582.

    The downside appears more compelling for BTC/USD after the price breached the 200-simple moving average (SMA) at $53,221.

    A bearish crossover on the said timeframe, represented by the 50-SMA piercing the 100-SMA from above, adds credence to the bearish outlook.

    Note that the Relative Strength Index (RSI) points south, probing the oversold region, advocating additional downside.

    The last line of defense for the BTC bulls is aligned at the March 26 low of $43,016.

    BTC/USD: Four-hour chart

    On the flip side, the recovery could gain momentum only on acceptance above the abovementioned 200-SMA support-turned-resistance on a four-hourly candlestick closing basis.

    The next upside target for the buyers would be seen at the bearish 21-SMA at $54,624. Further up, strong resistance around $56,600 could be a tough nut to crack. That level is the meeting point of the 50 and 100-SMAs.

    Read Also: Bitcoin Price Seems Unable to Move Above $60,000 — Should You Buy It Now?

    Ethereum: Repeated failures at higher levels have encouraged the bears

    Ethereum has finally charted a symmetrical triangle breakdown on the daily sticks after seeing the record run, which kicked-off from end-December.

    The ETH bulls, however, took a breather over the last month and this downside break only implies that the correction from all-time-highs of $2130 seems to have resumed.

    The ETH/USD pair extended its five-day losing streak on Wednesday, yielding a break below the rising trendline (triangle) support at $1676 on a daily closing basis.

    The bears take a breather this Thursday, which helps form a doji candlestick on the given timeframe. This could be indicative of a brief consolidative stint before the downward spiral regains traction.

    The RSI has recovered from lower levels but remains well below the midline, backing the case for more downside.

    The next relevant support is seen at the upward-sloping 100-daily moving average (DMA) at $1385. Ahead of that level, the $1500 round figure could test the bearish commitments.

    ETH/USD: Daily chart

    On the other side, any recovery attempts could meet initial demand at the pattern support now resistance at $1676, above which the $1700 mark could come into play.

    If the buyers manage to fight back control, the confluence zone around $1725/50 could be tested, where the 21 and 50-DMAs lie.

    The ETH buyers could then target the triangle resistance at $1894. A daily closing above that hurdle would lead to a pattern failure, calling for a bullish reversal.

    Check Out: Will Ethereum Make Me Rich?

    Ripple: Buyers brace for an upswing towards $0.60 amid bullish RSI

    The XRP/USD pair is consolidating Wednesday’s tumble, as a bull-bear tug of war persists so far this Thursday.

    The sell-off witnessed a day before has wiped off a major part of the last week’s advance above the $0.61 level.

    The price has returned to the familiar region around $0.50, with the XRP bulls trying hard to defend the critical 21-DMA support at $0.4762 once again.

    At the press time, the world’s seventh most favourite digital asset clings to the horizontal 50-DMA at $0.4873, looking for a fresh impetus to move back above the $0.50 mark.

    The RSI has turned north, currently trading at 51.85. Therefore, the spot has significant room to rise if the 21-DMA cap holds.

    Wednesday’s high of $0.58 could be back in the buyers’ sight. A test of the $0.60 level appears inevitable should the uptrend resume. 

    XRP/USD: Daily chart

    Alternatively, a sustained break below the 21-DMA could expose the 100-DMA cushion at $0.4067.

    A mildly bullish 200-DMA at $0.3689 would limit the decline if the course reverses.

    So far this Thursday, Ripple is the top performer amongst Bitcoin and Ethereum, gaining 2.4% on the day. The spot is still down 11% over the week.

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