- The Bitcoin price is approaching significant support, while the fallout from the recent eruption could bring the BTC price to $ 16,020.
- Ethereum prices continue to fall and are slipping below $ 1,000.
- The XRP price shows no reason why it should not make new annual lows.
The Bitcoin price, Ethereum and other cryptocurrencies are on the decline again – their movements are accelerating after a panel discussion held at Siyntra to coincide with the ECB’s annual economic forum. During this discussion with central bank heavyweights Powell, Lagarde and Bailey, Jerome Powell reiterated his statement that the Fed is aiming for a controlled recession that will cause some pain in the markets. When the super pigeon from the world’s largest central bank says its monetary policy will hurt investors, it is considered the mother of all warnings to investors to take their money and run towards the mountains.
Bitcoin price approaching support, risk of disaster
The Bitcoin (BTC) price is nearing the end of its decline as the price is inches away from touching a historically significant level marked at $ 19,036. The aforementioned Powell comments triggered another leg of dollar strength that overwhelmed the bulls, which tried to extend last week’s weakness range but were rejected by jumping off at the short-term $ 21,969 level. The return on the mentioned $ 19,036 is standard and predictable from a technical point of view, but can become difficult towards the end of the week.
The BTC price may increase if the price falls below this level. Many bulls will have entered this level and placed their stop just under $ 19,000. The BTC price could see a repeat of the pattern June 18-19, when the bulls’ stops were triggered, forcing them out of their positions and forcing them to re-enter to support the price to prevent it from falling further. The question now is whether bulls and investors will find themselves in the same position again given the further comments from Powell that heralded a controlled recession. There’s a chance that another 16% loss will add to Bitcoins’ already miserable performance and see the price tied at $ 16,000.
BTC / USD daily chart
At best, a simple technical bounce of $ 19,036 could be enough to push the price back towards $ 21,969. A test and a possible break over it would open space for an attempt to target the monthly S1 and short-term pivotal level to $ 23,878. Since this is a type of double cap, expect to take profits in this area and swing down for a short while in search of support.
The Ethereum price is the most vulnerable
The Ethereum (ETH) award was comparable to the Queen song from the early ’80s, namely “We are (not) the Champions”. The price action looks more like “Another bites in the dust” at the moment, as several media outlets have already reported that millions of ETH coins have been sold by its founder. Given the current state of global markets and the fact that Ethereum’s image continues to suffer, the price may soon implode, and when that happens, you should not be near it.
ETH Award will first attempt to complete its cycle and may seek refuge in monthly S2 support, which already provided support on 18 and 19 June. As mentioned in the Bitcoin article, investors may not be there to support this level this time around, as Powell will have scared many of them away. This means that the ETH price may exceed S2 and fall to $ 830, which would result in a 20% drop.
ETH / USD daily chart
Getting out of the bad mood this week seems to be quite complicated, although a drop in liquidity can do the trick as summer approaches. Should buyers remain present during the summer and bears take their profits before going to the beach, there may be supportive momentum for the bulls to drive up the price increase while the bears go on vacation. Expect a quick return to $ 1,243 followed by $ 1,688 at the bottom of the old bearish triangle and the 55-day Simple Moving Average (SMA), which is also being tested.
Did Powell sign the death sentence for XRP?
The Ripple (XRP) price is approaching a turning point where a reversal took place on June 18 and can be expected to rise back to $ 0.3710 on a swing trading setup. However, the current mood in global markets suggests otherwise, as downward pressure increases at a significant rate, threatening a complete collapse in the XRP price. Powell’s talk of a controlled recession held in Sintra on Wednesday is hurting markets, and there is a risk that if investors listen, another outflow will start just before the summer.
So the XRP price does not have a good summer outlook, as the price action could implode if $ 0.3043 does not hold. The safe system is the monthly S1, which has held at $ 0.2800. But if it breaks, it will open up a huge drop of 40%, with the XRP falling as low as $ 0.1737.
XRP / USD daily chart
The best scenario for the XRP price is a trend reversal to $ 0.3710 triggered by a bounce at $ 0.3043. That would mean that a 20% profitable trade is emerging in a simple series trading game. The price should break above the upside including the 55-day moving average of $ 0.3800 where it sets a ceiling. If the rally has multiple legs, $ 0.4228 could come into play for a performance over the summer.