The Bitcoin price shows the lack of participants buying after it has dropped about 17% in four weeks. According to analyst Akash Girmath, there is no recovery rally in sight due to the lack of bullish momentum. However, the analyst talks about a slow but steady plan for a bounce that could trigger a mini-rally for altcoins including Ethereum and Ripple if confirmed.
Bitcoin price close to starting a recovery
Bitcoin (BTC) price entered the weekly Bearish Breaker stretching from $29,247 to $41,273. This triggered a spike in selling pressure. As a result, BTC entered the weekly Fair Value Gap (FVG), which fell 16.50% from $22,591 to $26.591 between April 10 and May 8.
cryptocoin.comAs you follow, the bullish outlook for Bitcoin price is not clear yet. That said, there are signs traders can look for to spot an early trend reversal. It is possible for the Relative Strength Index (RSI) to slide a little lower to bounce off the average. The Awesome Oscillator (AO) shows a drop in bullish momentum. But it’s very close to seeing a reset at the zero line.
Given this momentum reset, investors should look out for the $25,205 and $24,300 support levels to accumulate BTC. A clear view of the momentum change can be observed on the daily chart. If buyers make a reversal, bitcoin price will retest the midpoint of the Bearish Breaker at $35,260. In total, this move will yield between 40% and 45% profit for investors, depending on their level of accumulation.
Traders should keep in mind that the bullish outlook detailed above needs to be identified and then confirmed. However, if none of the above happens, it is possible for the Bitcoin price to continue falling. In such a case, BTC is likely to find support at $17,605, the selling peak of the June 13 weekly candlestick.
Ethereum price recovery awaits BTC’s signal
Ethereum (ETH) price formed a long-term bearish divergence sell signal on the daily chart from January 14 to May 13. This formation caused a 17% crash that pushed ETH to $1,735 in four weeks. ETH price failed to retest the $1,705 support level. However, it declined below the $1,817 structure. While a recovery seems to be already in place, investors should wait for Bitcoin to show its hand before jumping into altcoins like ETH.
It makes sense for investors to look to the $1,705 support level for savings. But in the dire situation, a drop to daily FVG ranging from $1,478 to $1,563 is reasonable. If Bitcoin price starts to recover, Ethereum price is likely to start a recovery rally as well. Thus, a retest of $2,028 is possible.
If the daily candlestick closes below $1,478, the bullish thesis for FVG and Ethereum will be invalidated. In such a case, it is possible for ETH to decline to $ 1,249.
Ripple price has failed again
Ripple price has been struggling to surpass the $0.532 resistance level for about a year. Finally, retests on March 29 and April 19 were the last attempts to fail. As a result, the XRP price dropped 20%. Thus, it is currently trading at $0.422.
A bounce from this stable support level is likely to trigger a rally in Ripple price. Among the targets of this recovery rally stands $0.609 and $0.765, provided the XRP token turns the $0.532 resistance level into a support level.
The outlook for Ripple price is extremely optimistic. However, it depends on Bitcoin’s recovery rally. If the bullish breakout in BTC fails, it is possible for XRP price to turn the $0.422 support level into a resistance barrier. Such a move invalidates the ascension thesis. It will also potentially trigger a retest of the lower range at $0.288.
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