Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin Breaks Critical Support As Ethereum, XRP Attempt Recovery

By Crypto Briefing (Ali Martinez )CryptocurrencyApr 22, 2021 02:24AM ET
www.investing.com/analysis/bitcoin-breaks-critical-support-as-ethereum-xrp-attempt-recovery-200574576
Bitcoin Breaks Critical Support As Ethereum, XRP Attempt Recovery
By Crypto Briefing (Ali Martinez )   |  Apr 22, 2021 02:24AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Bitcoin, Ethereum, and XRP have managed to stabilize after crashing hard over the weekend.

Key Takeaways

  • Bitcoin lost the 50-day moving average as support for the first time in seven months.
  • Ethereum is contained in a no-trade zone, with no clear signs for traders.
  • XRP holders book profits, triggering a 44% correction.

The crypto market recently experienced one of its most severe flash crashes, generating over $9 billion in liquidations. Bitcoin has since fallen through a critical support level, but Ethereum and XRP might have a chance to recover.

Bitcoin Loses Crucial Support

The 50-day moving average has played a vital role in Bitcoin’s price performance ever since it came into play on Oct. 9, 2020.

This trend-following indicator has held through some of the most significant retracements since then, serving as a rebound point that drove prices to record highs. However, such a crucial support level broke during the recent flash crash, signaling that a steeper correction is underway.

Bitcoin was forced to close below the 50-day moving average for the first time in seven months, which is a major point of concern even for some of the most prominent analysts in the industry.

BTC/USD Daily Chart
BTC/USD Daily Chart

Tone Vays, former VP at JPMorgan Chase, believes that the break of the 50-day moving average could lead to a “real disaster.” The technical analyst maintains that the “sell-off will accelerate” if Bitcoin trades below $54,500.

According to Vays, only a daily candlestick close above $59,000 might invalidate the bearish thesis and lead to further gains.

Even though some on-chain metrics suggest that a rebound is near, Vays seems to be right in the sense that the bull market cannot resume unless BTC regains the 50-day moving average as support. Until then, Bitcoin could drop further toward the 100- or 200-day moving average.

These potential “buy the dip” zones sit at $49,000 and $34,500, respectively.

Ethereum Holds Steady

Ethereum looks better than Bitcoin from a technical perspective.

The second-largest cryptocurrency by market capitalization broke out of a symmetrical triangle on Mar. 31 and surged to meet the pattern’s target of $2,560. A spike in profit-taking was reasonable following the milestone, given the significance of the gains incurred.

The cryptocurrency market’s crash over the weekend saw Ether drop more than expected. Still, the demand area around $1,900 was able to contain prices from falling further, and now Ethereum appears to be trading within a no-trade zone.

A daily candlestick close below the 127.2% Fibonacci retracement level at $2,250 could lead to a retest of the $1,900 demand wall.

Conversely, a bullish impulse above the 141.4% Fibonacci retracement level at $2,360 might have the strength to push prices toward $2,500 or higher.

ETH/USD Daily Chart
ETH/USD Daily Chart

Despite the ambiguity, Skew recorded a significant spike in CME’s Ether futures volumes on Monday, Apr. 19. More than $360 million in trading volumes were registered on this day alone, representing the highest ever recorded since this derivative product launched.

Such market behavior suggests that institutional investors may have taken advantage of the downswing to buy ETH at a discount. Regardless, it is imperative to wait for a close above $2,360 before entering any bullish trades.

XRP Has Yet to Clear One Hurdle

XRP saw its market value skyrocket by a whopping 245% between Apr. 1 and 14. The fourth-largest cryptocurrency by market capitalization rose to a three-year high of $1.98, as it gained 1.41 points.

The sudden bullish impulse appears to have been fueled by speculation around the legal charges that Ripple is facing. Judge Sarah Netburn’s decision to deny the U.S. Securities and Exchange Commission access to the firm’s executives’ bank records was perceived as a win by the crypto community.

Still, an increase in selling pressure was imminent given the large number of XRP holders who have been underwatered since 2018. As this cryptocurrency approached $2.00, sell orders began to pile up, leading to a 44% correction to $1.10.

XRP/USD 60-Min Chart
XRP/USD 60-Min Chart

XRP has managed to recover some of the losses as it currently trades around $1.36. But it would have to slice through the 61.8% Fibonacci retracement level at $1.44 for the uptrend to resume. Turning this resistance barrier into support can serve as a sign that prices want to reach higher highs.

Nonetheless, a rejection from the overhead barrier could lead to a retest of the recent low at $1.10.

Original Post

Bitcoin Breaks Critical Support As Ethereum, XRP Attempt Recovery
 

Related Articles

Bitcoin Breaks Critical Support As Ethereum, XRP Attempt Recovery

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email