Alts at Discount before New Altcoin Season – BTC, ETH, XRP

ByDawn Pipkin

Apr 6, 2022
  • BTC will likely revisit the $44K mark before embarking on an upside move to $50K
  • Ethereum slides beneath the 200-day Simple Moving Average near $3,489 to rethink directional bias.
  • XRP needs to gather liquidity beneath $0.77 before a leg-up towards $1.

Bitcoin sliced through its yearly, monthly, and weekly open after a sharp fall on 5 March. However, the downside might be a precursor before the bellwether crypto climbs towards significant levels. ETH and XRP sustained declines and are rethinking directional moves before exploring higher levels.

BTC Price Forms a Launchpad

Bitcoin saw its price breaking out of a constricted consolidation and plunging beneath the $46,198 yearly open. The crypto has formed an equal low near $44,221. Market makers will likely push the crypto beneath this zone before catalyzing bullish actions.

After grabbing liquidity, enthusiasts can expect Bitcoin to rally towards the psychological level of $50,000. Amplified bullish moves will see the crypto tagging the hurdle at $53,000 and try to form a higher high.

While things appear up for BTC, a daily candle close under $44,580 will cancel the optimistic thesis. Such a move will clear the path for Bitcoin to retest the support level at $42,076.

Ethereum Struggles

Ethereum targeted the low volume node at around $3,703 after breaking beyond the 100- and 50-day SMAs. Nevertheless, the 200-day Simple Moving Average at $3,489 halted the upswing regardless of a slight move beyond it.

ETH could not sustain above 200-day Simple Moving Average amid inadequate volatility, translating to downside retracement. The downside might extend toward the high volume node at $3,136, matching the Volume Point of Control, the most traded level, and a crucial resistance and support zone on the price chart.

A rebound from the level will be critical in catalyzing the move toward the psychological level at $4,000. Nevertheless, BTC breaching the foothold at $44,580 will mean downtrends for Ethereum. That might see the leading alt retracing towards the demand zone at $2,820 – $2,966, breaching of which will form a lower low, canceling the bullish thesis.

Ripple Slows its Momentum

XRP broke the stable surge that dominated since the bull pennant breakout on 11 March. The recent drop, which resulted from Bitcoin’s flash crash, had XRP forming an equal low near $0.77.

Market makers may temporarily push Ripple beneath the mentioned zone amid liquidity hunting. Completing the liquidity run will signal an uptrend kick-off. The resulting uptrend will likely see the remittance token retesting the resistance barrier at $0.91.

Failure to hold beyond the foothold at $0.76 will see XRP creating a low lower, annulling the bullish theory. That might see Ripple declining towards $0.70. Buyers may try another upswing in this area.

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