Bitcoin (BTC) price is trading inside a descending wedge and could complete its correction after one final decrease.
Ethereum (ETH) price is still holding above the $1,260 horizontal support area. It is possible that the correction is complete.
The bearish pattern for XRP price alongside its bearish divergence suggests that short-term downside is expected.
BTC price bound for another downswing
BTC price has been decreasing inside a descending wedge since reaching a high of $25,211 on Aug. 15. The downward movement has led to a low of $18,125 on Sept. 21. This was just slightly above the yearly low of $17,622, which was reached on June 18.
The descending wedge is considered a bullish pattern, meaning that an eventual breakout from it is expected.
The six-hour ROI is bearish, since it has broken down from its ascending support line (green line) and has decreased below 50.
As a result, a downward movement towards the support line of the wedge seems likely for Bitcoin price. This would also cause a re-test of the yearly lows.
ETH price holds key support level
ETH price has been falling inside a descending parallel channel since reaching a high of $2,030 on Aug. 13. The downward movement led to a low of $1,243 on Sept. 21.
Descending parallel channels usually contain corrective movements. As a result, an eventual breakout from the channel would be likely for Ethereum price.
On Sept. 21, ETH price bounced at the confluence of the $1,260 horizontal support area and the support line of the channel (green icon).
While it has yet to initiate a significant upward movement, Ethereum price has managed to hold on above the support area.
An increase above the middle of the channel would be a strong sign in indicating that the downward movement is complete, and an eventual breakout in ETH price will follow.
Conversely, a rejection from the middle of the channel would indicate that Ethereum price could fall towards the $1,050 region.
It is also worth mentioning that the number of new addresses for ETH has just reached a 10-month-high. At the time, the ETH price was very close to its all-time high. This shows that interest in the network still remains high despite the downturn in Ethereum price.
XRP price double top could lead to $0.38 retest
On Sept. 22, XRP price broke out from an ascending parallel channel that had previously been in place since the June 18 lows. The next day, it reached a high of $0.56, a 42% increase in only two days.
After a short-term retracement, XRP price created a slightly lower high of $0.55 on Oct. 9. When combined with the aforementioned $0.56 high, this created a double top, which is considered a bearish pattern.
Additionally, the double top was combined with bearish divergence in the daily RSI (green line). Such divergences often precede bearish trend reversals. The next day, XRP price created a bearish engulfing candlestick, further supporting the possibility of a bearish reversal.
If a downward movement follows, the closest support area would be at $0.44. This is the 0.5 Fib retracement support level and coincides with the resistance line of the previous channel.
If the area fails to support the price, the next closest support would be at $0.38, created by a horizontal support area and the middle of the channel.
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