- Bitcoin lacks the momentum to continue with the uptrend despite gaining $4,000 from Sunday’s support around $51,000.
- Ethereum price drops toward $2,000 despite Purpose Investment launching first Ether ETF product.
- Ripple’s rejection from $1.4 risks breakdown to $1.12 and $1, respectively.
The cryptocurrency market is mainly red, with bulls running out of steam. As discussed yesterday, Bitcoin stepped above $56,000 but failed to extend the bullish leg toward $60,000. At the time of writing, bears are in full swing as BTC seeks refuge heading to $54,000.
Ethereum is up 3.2%, according to the data by CoinGecko, and on the day that the market was treated to the first ETH exchange-traded fund (ETF) by Purpose Investments. On the other hand, Ripple holds slightly above $1.3 after support at $1.4 gave in to the rising overhead pressure.
Dogecoin, the recent darling of the cryptocurrency market, left many traders disappointed on ‘Dogeday,’ the day dedicated by users to pump the price to $0.5 and $1, respectively. The meme coin did not rally as expected but dropped to $0.27 before resuming the uptrend above $0.3.
Bitcoin Least Resistance Path is South
Bitcoin is dropping fast after losing support at $56,000. The flagship cryptocurrency has extended the bearish leg under $55,000 as bears eye another dip toward $50,000. If support at $54,000 holds, buyers will regain control.
However, if the technical picture remains unchanged or worsens, BTC will tumble to $50,000, especially with monthly options expiring on Friday.
The bearish outlook has been reinforced by the Relative Strength Index (RSI) on the four-hour chart. This indicator follows the trend of an asset and measures its strength. As the RSI drops toward the oversold, the downtrend also gains traction. Besides, the Super Trend indicator recently presented a call to short Bitcoin.
BTC/USD Four-Hour Chart
According to JP Morgan Chase & Co. analysts, Bitcoin lacks sufficient momentum to continue with the uptrend in the wake of Sunday’s crash to $51,000. Reclaiming $60,000 will be a significant boost for Bitcoin, but investors should brace for more challenging times in the short term if it delays.
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Ethereum Ignores First ETH Launch
Purpose Investments confirmed last week that the Canadian securities regulator had approved the Ethereum ETF. The product hit the market for the first time under the ticker ETHH on the Toronto Stock Exchange (TSX) on Wednesday.
The launch comes after a successful launch of Bitcoin ETH, currently trading under the ticker BTCC. There are over $1 billion assets under management, according to data by Glassnode. The Ethereum ETF stands out because it “invests in and holds 100% physically settled Ether.”
In the meantime, Ethereum trades at $2,258 at writing. The upside is capped by the 50 Simple Moving Average (SMA). Ether will drop to test the key support at $2,200, highlighted by the 100 SMA if selling pressure rises. Losses will extend to $2,000 in the event this support fails to hold.
ETH/USD Four-Hour Chart
The Moving Average Convergence Divergence (MACD) indicator prints a relatively bullish picture. The MACD line holds above the signal line, hinting at the resumption of the uptrend.
Read More: Will Ethereum Reach $3000?
Ripple’s Tumble Toward Critical Support
The cross-border cryptocurrency token was pivotal at $1.4 earlier on Wednesday. However, as discussed, closing the day below this area and, by extension, the descending parallel channel’s upper limit would lead to an increase in selling pressure.
Ripple currently teeters at $1.3 amid a renewed bearish outlook. The 100 SMA provides immediate support, but if lost, XRP will drop to seek refuge at the channel’s middle boundary.
The MACD is about to flip bearish and affirm the bearish narrative. In addition to the indicator stalling in the negative area, the MACD line (blue) could cross beneath the signal line, reinforcing the bearish outlook.
XRP/USD Four-Hour Chart
It is worth noting that support at the 100 SMA would ensure market stability is restored. Here, investors will come from the sidelines, anticipating a breakout toward $2. Ripple needs to confirm the uptrend by closing the day above the channel’s upper limit and overcoming the hurdle at the 50 SMA.
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