Bitcoin (BTC) price bulls are doing everything within their power, fighting to retain liquidity amid intense volatility. A 4.7% decline in the total crypto market cap to $2.2 trillion suggests selling pressure is still apparent. Leading altcoins, including Ethereum (ETH) price and XRP price, were not spared the setback likely to have been triggered by the lack of confidence in the market and the need to book profits.
Bitcoin Price Prepares For Significant Move Higher
Bitcoin price cascading fall from last week’s high at $65,000 failed to find support above $60,000 on Tuesday, extending its leg to $58,000 in a candle wick. Some investors, especially whales, capitalized on the correction to buy the dip, hence the green four-hour candle on the chart testing the $60,000 level.
According to Santiment data, investors with between 100 and 1,000 BTC in their wallets now hold 20.23% of the total supply, approximately 4 million BTC. Other cohorts of whale addresses accelerated the buying spree to account for 24.27% of the total supply or roughly 4.8 million BTC. If such buying activities continue, BTC price will gain momentum toward the all-time high (ATH).
According to Bob Loukas, a renowned trader, the ongoing BTC price forecast and doldrums are expected to continue into September. However, as sellers run dry, a stronger pattern will form to break the range resistance at $70,000 and advance to ATH. He advises investors to be patient with Bitcoin and focus on the bigger picture.
Technically, Bitcoin must hold $60,000 in support of dispelling all fears of further correction. From here, traders will focus on the 200-day EMA at $61,47 and the 50-day EMA at $61,724. The subsequent break above $62,000 will increase the chances of Bitcoin price climbing to retest $64,000 before September.
Ethereum Price Reacts To Bear Flag Breakout
Ethereum price extended Tuesday’s correction to $2,400 support, validating a bear flag pattern with a 17% target to $2,100. However, a reflex reversal to $2,522 suggests that more traders are buying the dip and may invalidate the potential downswing.
The Relative Strength Index (RSI) reversal from 36 to 42 affirms the forming of a bullish trend. Movement above $2,600 would imply that ETH price is stronger and could reach $2,800 or even $3,000 before the weekend.
The bullish ETH price prediction may fail to materialize if Ethereum ETFs continue with the outflow streak. Based on SoSoValue data, only two of the nine ETFs experienced inflows. Cumulative net outflows reached $3.45 million on August 27.
Traders should focus on two key levels ahead of September: support at $2,400 and resistance at $2,800. A break on either side of this range may determine ETH direction.
XRP Price Reinstates Uptrend
XRP price came close to testing the 200-day EMA support at $0.5487 but has reversed the uptrend to exchange at $0.5811. The 20-day EMA at $0.5833 caps the upside, but Ripple could reach a breakout above $0.6 if broken.
An impending inverse head and shoulders (H&S) pattern breakout could propel XRP price 21.6% higher to $0.74 in the coming weeks. The RSI reversal above the trend line resistance will also add credence to the bullish outlook.
Traders must prepare for all eventualities, including a potential correction to $0.4 should the SEC decide to appeal the final ruling in the lawsuit against Ripple.
Frequently Asked Questions (FAQs)
BTC crashed amid heightened profit-taking and the lack of confidence in the uptrend to ATH.
Ethereum’s price is back above $2,500 after testing $2,400 in support, suggesting upcoming bullish momentum.
If XRP price breaks $0.6 resistance it could reach for $0.74 due to a likely inverse H&S pattern breakout.
John Isige
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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