Bitcoin, Ethereum, Ripple clawed back gains accrued since last week after BTC reached $70,000 on Monday. The largest cryptocurrency is inching closer to $66,000 on Tuesday. Altcoin major Ethereum (ETH) slumped in response to BTC’s sell-off, losing 1.5% to $3,333, while Ripple (XRP) defied the overhead pressure, rising 2.5% to $0.6246.
Bitcoin Price Falls Despite Positive ETF Flows
Bitcoin quickly debuted at $70,000, but uncertainty about the trend’s sustainability dampened the recovery. Additionally, jitters over the US government moving BTC from Silk Road rattled investors who may have sold amid fears of a sell-off.
Following the drastic drop below the 20-day Exponential Moving Average (EMA) in blue and the 50-day EMA in red, Bitcoin price traded at $66,585 amid the search for higher support and liquidity.
A rising wedge pattern hints at a possible 14.15% drop if BTC breaches the trend line support. Should the decline extend below $66,000 and the 200-day EMA in purple at $64,385, traders may anticipate a sweep through more liquidity at $60,000.
If the wedge pattern support holds or Bitcoin rebounds from the $66,000 level, the downtrend to $60,000 will be invalidated, allowing bulls to push for the resumption of the uptrend.
Another factor likely contributing to BTC price forecast in August is a noticeable consistency in total daily net ETF inflows. According to SoSoValue, Bitcoin ETFs posted $124 million in net inflows on Monday, with BlackRock’s IBIT netting approximately $206 million.
Ethereum Bulls Fight To Defend Key Support
Unlike Bitcoin ETFs, the newly launched Ethereum ETFs face persistent withdrawals, mainly from Grayscale, as $210 million was withdrawn from ETHE.
However, it is worth noting that most of the spot Ethereum ETFs recorded net inflows on Monday, led by BlackRock’s ETHA at $58 million.
This, in turn, means that the trend may shift significantly should withdrawals wane on Grayscale, paving the way for improvement in market sentiment.
Meanwhile, bulls have bagged their desire to defend support at $3,300, hence the ongoing bounce back at $3,340.
However, traders cannot rule out a potential correction to $3,100 unless the 200-day EMA marking the immediate resistance is breached.
Should the channel support break and validate the bear flag pattern, sellers will gain more strength. Based on the Ethereum price forecast, such a breakout would mean the decline stretches to $3,100.
The presence of a buy signal from the Moving Average Convergence Divergence (MACD) may change the technical outlook positively and even encourage traders to append to their buy orders.
Ripple Price Analysis: Why Is XRP Up Today?
XRP is upholding the bullish thesis while Bitcoin and Ethereum struggle to regain strength following Monday’s volatility. This momentum seems to have followed the sharp increase in the trading volume to $1.8 billion, as seen on CoinMarketCap.
A buy signal flaunted by the MACD implied that buyers have the upper hand and are willing to rally behind Ripple price for a breakout to $0.7.
If XRP closes the day above the immediate support at $0.62, the uptrend will likely be steady in the coming days. A soon-to-be-confirmed golden cross will also increase the probability of a breakout above $0.7.
Traders must prepare to act if XRP slides below support at $0.62, asserting pressure on the buyer congestion zone around $0.6, coinciding with the 38.2% Fibonacci retracement. Should the downtrend persist, the target on the downside would be the 20-day EMA at $0.5745, and if push comes to shove, the next potential support would be $0.5.
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Frequently Asked Questions
The sharp drop from $70,000 into the $66,000 range followed actions by the US government, which moved BTC and overbought conditions in shorter timeframes. A further decline below $66,000 may open the door for losses to $66,000, but a rebound above $70,000 is still on the cards.
Ethereum has the potential to rally above $4,000 in the coming weeks, especially if the spot ETF flows flip positive. A correction to $3,100 is possible, but traders can buy the dip ahead of another rebound.
Ripple is among the few altcoin majors in the green. It is seeking support above $0.62, implying a potential move above $0.7 later in the week.
