John Isige
Bitcoin (BTC) price printed another bullish streak, triggering a broader market recovery, which boosted select altcoins and Ethereum (ETH) price by a remarkable 8%. However, Ripple (XRP) price declined 5% after a major run bolstered by the longstanding lawsuit.
Bitcoin Price Rallies Amid Volatile Open Interest
Bitcoin price made a surprise move toward $62,000, extending the uptrend from Monday’s low at $49,000. A Matrixport report attributed the drastic rally to oversold conditions after BTC price led cryptocurrencies to a colossal crash on Monday.
Based on a previous Bitcoin price prediction, the release of US inflation data next week could provide momentum to continue the rally to $70,000. Another lower inflation print is expected to guide the Federal Reserve’s decision on interest rates. A rate cut could propel BTC to achieve a new all-time high, targeting $80,000.
Despite the sharp uptick, BTC has started to retreat and may test $60,000 support. Should the correction extend below this level, it will confirm that traders are unwilling to take risks.
A 65% one-day drop in BTC open interest across three exchanges calls for caution when trading Bitcoin price this month. Historically, August is known for low volumes and liquidity, which may impact price increases.
Ethereum Price Stalls as Bearish Signals Loom
Ethereum price renewed its bid for the $3,000 target on Thursdays following a brief hiatus under $2,500. Traders aggressively bought the second-largest digital asset as a buy signal from the Moving Average Convergence Divergence (MACD) catalyzed the uptrend.
Bulls successfully challenged the hurdle at $2,700 but took a breather soon after, hinting at low liquidity or profit-taking among investors. Besides, the 50-day Exponential Moving Average (EMA) limits upside price movement above $2,700.
A bear flag pattern in the four-hour range could complicate matters for the bulls if validated, resulting in a potential 18% drop below the ascending channel’s support.
The target equals half the distance of the flagpole and is extrapolated below the breakout point. Should this Ethereum price forecast materialize, a retest of the $2,000 level should be anticipated.
Holding firmly to higher support above $2,600 or the channel’s middle boundary area will invalidate the bearish outlook, allowing bulls time to gather more liquidity for a major push to $3,000. The 20-day EMA is a level to watch since if declines intensify, it will provide ETH price support at $2,566.
Ripple Price Rally Reverses As OI Plunges
Ripple price rallied by more than 20% on Thursday after Judge Analisa Torres put an end to the lengthy lawsuit against the Securities and Exchange Commission (SEC). Ripple was the obvious winner of the lawsuit as XRP was finally cleared of alleged security status. The company will, however, pay a $125 million fine.
XRP price spiked above $0.6 and tested $0.64 resistance before the ongoing correction commenced. Several factors may have catalyzed the fall below $0.6, including an 8% slump in the 24-hour OI, according to Coinglass data, profit-taking, and the lack of liquidity.
An upcoming sell signal from the MACD indicator increases downside risk to $0.55 support, highlighted by the 200-day EMA. The prevailing uncertainty may extend the downturn to $0.5.
The next key support is $0.58 where bulls are expected to launch another offensive for a larger breakout to $0.7. The next key support lies with the 20-day EMA around $0.5752 and it might contribute to the potential uptrend momentum.
The post Top 3 Bitcoin, Ethereum, Ripple Price Analysis: Why Is BTC Up Today? appeared first on CoinGape.
