- The Bitcoin price has dropped by 15% after breaking a shorter bear flag pattern.
- The Ethereum price marks the $ 1,305 target after plunging 28% in the last four days.
- The Ripple price loses 16% after breaking out of a bearish pendulum pattern and predicting a target of $ 0.221.
The Bitcoin price dropped over the weekend, taking Ethereum, Ripple and other altcoins with it. The reason for this brutal market downturn seems to be twofold – fears of Celsius Network’s solvency and the announcement of CPI.
Celsius is a crypto-based lender and major holder of Staked Ethereum (stETH), i.e. Ethereum bet on the Lido platform, which is linked to ETH in the ratio 1: 1. Due to sudden redemptions, the coupling between stETH and ETH is significantly decoupled.
The imbalance now leads to a bank run on the Celsius Network. While this is a background factor that is destabilizing the markets, the second CPI inflation announcement (consumer price index) on June 10 triggers a crash over the weekend, tipping the markets.
… $ stETH @ 5% off. Liquidation Domino at <0.90 pic.twitter.com/mPy33tvH0h
– Butta.eth (@Butta_eth) June 10, 2022
Earlier today, Celsius Network announced that it will suspend all withdrawals, swaps and transfers between accounts. This announcement has led many to wonder what this could really mean for Celsius.
UpOnly podcast host Cobie tweeted,
One must hope now that they are not bankrupt, but have just dumped too much customer money into illiquid / blocked places – eg on Beacon Chain
Then maybe they can wait and pay the users the money back.
But if they lost everything, then gg I think.
– Cobie (@cobie) June 13, 2022
The Bitcoin price turns out to be the worst
The Bitcoin price has fallen by 17% since June 10 after opening at $ 30,0082. This downturn has caused BTC to break the smaller bear flag pattern, predicting a 30% crash to $ 20,560. Interestingly, the same chart also shows that the larger bear flag projects a similar target of $ 20,002.
While the crash appears to have stopped, investors should be cautious as a continuation of the crash could cause BTC to fall.
BTC / USD 1-day chart
While unlikely, if the bitcoin price creates a daily candle that closes above the $ 52,000 level, it would create a higher high from a macro perspective and invalidate the bearish thesis. In such a case, the Bitcoin price could rise to $ 60,000.
The Ethereum award reaches its goal
The Ethereum price raised a bear flag in late April and broke the lower trend line on May 4th. Since then, ETH has fallen 52% to reach the expected target of $ 1,305. With altcoin trading around this level, investors will have to be patient if they want to buy the dip or open long positions.
This crash broke the $ 1,401 weekly support level and turned it into a resistance level. A continuation of the downward trend, which breaks the $ 1,305 level, could trigger a 20% dip to the current level of $ 1,050.
ETH / USD 1-day chart
But if buyers step in and buy ETH at a reduced price, there is a chance for a recovery. If the $ 1,401 barrier quickly turns into support, it will indicate a resurgence of bullish momentum. This development may result in the Ethereum price attempting to rise to $ 1,730.
Ripple price still has a long way to go
The Ripple price broke a bearish pennant on June 10, another bearish continuation pattern. This development caused the XRP price to collapse by 16% in the three subsequent daily candles. With remittance token trading at $ 0.325, there is a risk of another crash.
This technical formation predicts a dive of 42% to $ 0.221, and given the current state, the Ripple price may fall 32%. However, a sudden drop will not occur due to the support levels of $ 0.250 and $ 0.302.
XRP / USD 1-day chart
Although things do not look so bad for the Ripple price, a recovery above $ 0.578 is needed for the bulls to breathe a sigh of relief. A daily candlestick close to $ 0.657 would invalidate the bearish thesis by creating a higher high.