Crypto Frontline

BTCUSD (Coinbase)

Source: TradingView

Bitcoin continued its run lower over the past week and got close to the $30,000 area for the first time since the end of January. In less than the month, the token shifted from near all-time highs to now threatening to break below this year’s low, communicating the bullish sentiment is always very fragile.

Even though looking at the daily chart the bears continue to hold the upper hand, the oversold conditions and the key support area between $30k – $27k are raising the prospects for a short-term bounce. As long as the highlighted zone will cap the downside, we think BTC can rise towards the $40k area once again, which is where it found heavy selling a few days ago.

In case the sellers will continue to push the price lower, below the key support, that would be a very bad sign for the bulls. BTC dumping could continue and $20,000 will be the next support area to watch. For now, buyers need to be patient, until price action developments on lower time frames will suggest the sentiment is starting to shift.

ETHUSD (Kraken)

Source: TradingView

Ether had tumbled more impulsively, once the triangle pattern we’ve talked about a week ago was breached on the downside. The price dipped below the $2,000 key psychological area for the first time since the end of March.

As compared to Bitcoin, the RSI is not yet trading in oversold territory, which leaves some room left for selling. The area around the daily 200 SMA is where we suspect a bounce might occur, considering it had acted as support many times in the past. Also, ETH lost more than 50% of its value in less than a week, a development that wipes out all the gains since the end of March.

Same as with BTC, if the market sentiment will start to improve, a bounce should start to unfold. More losses below $2,000 will be a negative sign in the short-term, as the area had been successfully defended by the buyers a few times.

XRPUSD (Kraken)

Source: TradingView

It was a very bad week for XRP as well, which has also dropped more than 50%, reaching a key support area located around 78 cents. This is a role reversal level, given it was a prior November 2020 high and major resistance, before buyers managed to break it.

Now that the price got back to it, we need to closely monitor the price action developments and see if a stronger bounce starts to emerge. Today we see some mild buying, but more is needed in the following days to push the price towards the $1 area once again.

The area between 78 cents – 64 cents is critical, given the daily 200 SMA is also located there. We need to consider that the end of the month is approaching, and rebalancing could start to unfold. Valuations had retraced sharply from the highs and now buyers are more incentivized to gain more exposure on XRP.