- Bitcoin price consolidation continues, the bear remains in check but the bulls are strongly defending.
- Ethereum’s price action is extremely bearish, but sellers can’t shake off buyers.
- XRP price is entering a decisive zone, giving equal weight to bulls and bears for the probability of a breakout.
Bitcoin price continues to consolidate. Ethereum price confirms, once again, a major short entry condition from Ichimoku. The consolidation of XRP prices provides profit opportunities for both long and short positions.
Bitcoin price continues to vex bears, but a fall is not far away
Bitcoin price action has seen a lot of backlash over the past thirty days. There have been several attempts to push Bitcoin lower. Likewise, many attempts to bring Bitcoin back to bullish conditions have also been tried and rejected.
It is decidedly bearish given where Bitcoin currently sits in the Ichimoku Kinko Hyo system. However, the threshold needed to convert the Bitcoin price into a bull market has dropped significantly. As a result, the Ichimoku cloud has become very thin as of today. Thin Ichimoku clouds represent weakness. This means that if Bitcoin price can close above the Tenkan-Sen and Kijun-Sen at $40,125 or higher, it should easily break above the Ichimoku Cloud.
Daily chart Ichimoku Kinko Hyo BTC/USD
Bitcoin price needs to close at $44,600 or higher to confirm an ideal bullish breakout of Ichimoku. The likely target before encountering resistance is the $53,000 value area.
A daily close at $37,000 or lower would confirm an ideal bearish breakout of Ichimoku and likely drive Bitcoin price down to June 2021 and July 2021 lows near $30,000.
Ethereum price shows bears struggling to push ETH down
Ethereum’s price action, like that of Bitcoin, is extremely bearish on the Ichimoku daily chart. The structure and terms and conditions of ETH mirror almost all bitcoins except one. Ethereum shows bearish Ichimoku ideal breakout confirmed.
However, despite Ichimoku’s ideal bearish breakout, Ethereum’s price failed to crash. Interestingly, ETH has triggered an ideal bearish Ichimoku breakout eleven times since March 3. Nonetheless, the bears are unable or unwilling to push ETH over the ledge.
Regardless of why Ethereum price is still holding within the $2,500 value zone, there is no technical reason why it is showing strength. In addition to the confirmation of the ideal break of Ichimoku Bearish, ETH is below the 2022 volume control point, remains below the bearish pennant and is now below the 61.8% Fibonacci retracement of the all-time high at the low of the strong bar on the weekly chart at $2,570.
Daily chart ETH/USD Ichimoku Kinko Hyo
Downside risks in Ethereum’s price are likely limited to the June 2021 and July 2022 lows near the $1,800 value area.
Upside potential is likely capped at the top of the Ichimoku Cloud (Senkou Span B) and the upper trendline of the bearish pennant, both at $2,900.
XRP price could go either way; bulls and bears are waiting now
XRP price action shows very different trading conditions compared to BTC and ETH. Ichimoku’s daily chart shows that XRP is locked in the Cloud. The $0.78 is the main resistance level and contains the Tenkan-Sen and the top of the Ichimoku cloud (Senkou Span A). $0.73 contains the Kijun-Sen and the bottom of the Cloud (Senkou Span B).
Although the cloud represents volatility and indecision, there is one bias that has a higher probability of occurring than the other. The two strongest levels in the Ichimoku system, the Kijun-Sen and Senkou Span B, represent where bears need to close XRP price below to trigger an ideal bearish Ichimoku breakout. However, Chikou’s duration should be in open space, which means XRP needs a daily close at $0.695 or lower – or 10% below Tuesday’s open.
Daily chart Ichimoku Kinkon Hyo XRP/USD
On the long side the path is much easier. The Tenkan-Sen and the Senkou Span A represent the weakest levels. To trigger an ideal bullish Ichimoku breakout, XRP price needs a daily close at or above $0.825 – or 6.5% above Tuesday’s open.
The upside potential for XRP price in the near term is likely limited to the $1.05 value area, and downside risks are limited to the $0.50 range.