Top 3 Price Prediction Bitcoin, Ethereum And XRP: Rejection Opens The Pandora Box

The cryptocurrency market lost steam over the weekend, somehow giving way for bears to regain control. For instance, the largest cryptoasset Bitcoin closed in on $11,000 after overcoming the resistance explored on Friday at $10,800. However, the king of digital assets failed to break the resistance at $11,000.

The slow traction witnessed across the board apart from some selected cryptocurrencies such as Cardano (ADA), spiked above $0.10 as predicted. Other digital assets performing relatively well include Cosmos (ATOM), up 7.48% in the last 24 hours and THETA, up 7.95% in the same period.

Bitcoin stalls under $11,000

As mentioned, Bitcoin rolled towards $11,000 but hit a wall at $10,986. The rejection from this level has seen bulls rush to defend the support at $10,800. The Relative Strength Index (RSI) recovered above the midline, hence the gains that almost hit $11,000. However, the indicator, which measures the strength of a trend has slowed down the uptrend and seems to favor a sideways movement at 65. If the RSI is to hold onto the horizontal direction, consolidation will take over in remaining sessions on Monday.

The formation of a rising wedge in the same 4-hour foresees resistance heading towards $11,000 and $11,200 levels, respectively. A rising wedge pattern occurs in instances where an asset’s price has been rising over a period. Trendlines are drawn above and under the price on the chart, and they tend to converge. A rising wedge pattern signals a potential reversal in the price following a breakout from the lower trendline. 

BTC/USD 4-hour chart

(Click on image to enlarge)

BTC/USD price chart

In this case, if Bitcoin fails to rise above $11,000 and is rejected again, a break below the lower trendline would signal losses towards $10,500. Note that Bitcoin will try to seek support at the 100 Simple Moving Average (SMA) and the 50 SMA in a bid to absorb the selling pressure and invalidate the downtrend.

IntoTheBlock’s IOMAP model suggests growing supply barriers running up to $12,000. However, the most robust resistance lies in the range, $11,567 - $11,895. The zone is highly congested with investors who had previously purchased BTC around that price. Here, 1.04 million addresses are holding nearly 727,000 BTC. The range might absorb some of the buying pressure, especially if Bitcoin bulls push the price above $11,000. However, if Bitcoin slices through this area, it would likely spike to $12,500.

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Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

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