The central theses
- Bitcoin prices could fall and complete the right shoulder of an inverted head and shoulders pattern and then rise above $ 67,450.
- Ethereum will need to get back $ 2,050 as support ahead of its market value to hit a new all-time high of $ 2,500.
- After an explosive breakout, XRP prices could also continue to rise.
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A surge in profit-taking appears to have pushed Bitcoin, Ethereum and XRP into a consolidation phase. Still, it is expected that these digital assets will soon resume their respective uptrends.
Bitcoin consolidates ahead of higher highs
Bitcoin has been dormant afterwards increasing To a new all-time high of nearly $ 62,000 in mid-March. The stagnation caused an inverted head and shoulders pattern to form on the 4 hour chart.
At the time of writing, BTC is creating the right shoulder of a bullish formation. Due to the height of the left shoulder, Bitcoin prices could fall before a possible breakout. A downturn towards the Fibonacci retracement level of 38.2% or 23.6% would make the inverse head and shoulders pattern more symmetrical.
These crucial support levels are at $ 54,570 and $ 52,960, respectively.
BTC / USD on TradingView
While Bitcoin’s price is very likely to fall before it hits higher highs, inverse head and shoulders patterns don’t necessarily have to be symmetrical.
It is imperative to pay close attention to the cutout of the pattern or the 78.6% Fibonacci retracement value at $ 59,290 in case an early breakout occurs. If Bitcoin succeeds in closing decisively above this price hurdle, it will be 14.90% Boom can to be expected toward the Fibonacci retracement level of 141.1% or 161.8%.
These areas of interest are $ 67,450 and $ 70,330, respectively.
Such a bullish target is determined by measuring the height between the neckline and the head of the inverted head and shoulders pattern and adding that distance to the breakout point.
Ethereum is aiming for new all-time highs
Ethereum saw a month-long period of consolidation during which its price hit a series of lower highs and lows. This behavior resulted in the formation of a symmetrical triangle on the 4-hour chart.
Ethereum could breaking out that pattern rose nearly 16% on March 31, hitting a new all-time high of $ 2,160.
Even though Ether took a 10.70% nosedive after the peak, it still has more room to soar. The height of the y-axis of the triangle suggests that ETH could do this 18% increase from the recent high towards the Fibonacci retracement level of 141.1% or 161.8%.
These potential bullish targets are at $ 2,480 and $ 2,720, respectively.
The recovery of the USD 2,050 resistance as support can be seen as the first confirmation signal that Ethereum is prepared for higher highs.
ETH / USD on TradingView
It’s worth noting that a rejection of the $ 2,050 resistance level could result in a fall to the 78.6% Fibonacci retracement level at $ 1,860. This plane coincides with the breakout point of the triangle.
A possible correction to the USD 1,860 support level could be viewed as a valid retest of the triangle’s upper trendline to ensure that the breakout is reliable and trustworthy. It also provides a chance for page investors to re-enter the market, which increases the pressure to meet the goals.
XRP prepared to continue the uptrend
Ripple’s XRP made headlines after that breaking out from an inverted head and shoulders that saw it rise above $ 1.00 For the first time since mid-February 2018. After the explosive price movement, XRP entered a consolidation phase on the 1-hour chart.
The short-term, lackluster price movement after the peak on April 6th appears to produce the pennant of a bull pennant formation. Meanwhile, the 100% post-April 4 rebound seems to have developed the flagpole of the pattern.
Another spike in buying pressure allowing XRP to break the pennant’s upper trendline or the 78.6% Fibonacci retracement level at $ 1.00 signals a possible breakout.
In such unique circumstances, this cryptocurrency could rise nearly 50% towards the Fibonacci retracement level of 127.2% or 141.4%. These resistance barriers are at $ 1.36 and $ 1.50, respectively.
The bullish target is determined by measuring the height of the flagpole and adding that distance to the breakout point.
XRP / USD on TradingView
While the odds appear to be favoring the bulls, investors need to be aware that the XRP must be above the Fibonacci retracement level of 61.8% at $ 0.86.
Failure to do so could invalidate the bullish outlook and result in a correction to the Fibonacci retracement level of 38.2% or 23.6%. These support levels are at $ 0.73 and $ 0.6 f6, respectively.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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