Bitcoin (BTC) price has broken out of a descending wedge after rebounding from the $18,850 horizontal support area, while Ethereum (ETH) price rebounded into the $1,270 horizontal support area and is soon exiting its descending parallel channel. can.
However, XRP price is barely holding onto the support line of a symmetrical triangle. The direction of the trend is unclear.
Bitcoin Price Prediction: Break Out of the 88-Day Pattern
BTC price has been declining inside a descending wedge since August 15th. A descending wedge is considered a bullish pattern, which means that an eventual breakout from it would be the most likely scenario.
On September 21, it looked like bitcoin price broke a wedge and a horizontal support at $18,850. However, the decrease was only a divergence (green circle), as BTC price rose shortly after and reclaimed the $18,850 area. The low also validated the wedge support line, which has been in place since July 26.
Later, bitcoin price formed two long lower wicks (green symbols) after a bounce back above the $18,850 support area and finally broke through on 23 October. At the time of the breakout, the wedge was in place for 88 days.
Besides, the daily RSI is supporting the continuation of the upward move. It has generated a Bullish Divergence (Green Line) and its trend line is still intact.
If the upward move continues, the main resistance area will lie between $21,678 and $22,513.
Therefore, there are two main bullish signals supporting a bullish BTC price prediction.
- BTC has broken out of a descending wedge
- The daily RSI is forming a bullish divergence (green line)
Ethereum Price Prediction: Strengthening performancen by regaining support
ETH has been declining below a descending parallel channel since reaching a high of $2,020 on August 22nd. Similar to a descending wedge, a descending parallel channel is considered a bullish pattern. As a result, an eventual breakout is expected.
Furthermore, the price action is bullish. Ethereum price rebounded twice (green sign) at the $1,270 horizontal support area, forming a long lower wick for the second time.
Besides, the daily RSI has broken below its descending resistance line (Green Line) and is now above 50. Finally, ETH price is trading in the upper part of the channel, indicating that an eventual breakout is expected.
So, similar to BTC, there are several signs indicating that the ETH price action is bullish:
- Daily RSI has broken below its descending resistance line
- ETH price reclaimed the $1,270 horizontal support area
- ETH is trading in the upper part of the channel
XRP Price Prediction: Consolidation Without Clear Trend
The technical analysis picture for XRP is less clear. While XRP price broke out of an ascending parallel channel, it is now trading inside a neutral symmetrical triangle pattern.
On the one hand, the support lines of the triangle have been verified twice (green symbols), creating long lower wicks in the process. On the other hand, the daily RSI is declining and is below 50. Therefore, both technical indicators and price action have mixed signals.
The most likely wave count shows that XRP price is in wave C (white) of the triangle and will eventually break out. However, this price prediction is not supported by the RSI nor price action.
Therefore, a drop below wave C to $0.421 (red line) would invalidate this hypothesis and suggest that XRP price will decline. In this case, the next nearest support area will be at $0.385.
Unlike BTC and ETH, the trend for XRP is less clear. The neutral pattern fails to confirm the trend direction with a lack of bullish divergence and a reduction in the ongoing RSI.
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