- Bitcoin price has reached a five-month low, and is oversold.
- Ethereum price action is signaling a massive bullish reversal.
- XRP price could quickly return to $1.00 if the recent bearish breakout fails to sustain more selling pressure.
Bitcoin price action is showing evidence that a bottom may be forming, depriving the bears of any further downward movement. Ethereum price has developed a ridiculously extended hidden bullish divergence on the weekly chart, warning of an impending bullish reversal. XRP price was hacked by two major sell setups, but sellers failed to push XRP lower.
Bitcoin price presents a buying opportunity before BTC reaches $60K
Bitcoin price has developed an excellent theoretical long setup on the $1,000/3 squares reversal point chart. The idea of a long entry is to buy stop at $44,000, stop loss at $40K, and profit target at $61K. This trade represents a 4.25:1 return/risk setup with an implied target of 40.5% of the entry. A trailing stop of two or three boxes will help protect any profit made after entering.
Profit target is based on the vertical profit target method of point and figure analysis, but it can be very conservative. However, if the bitcoin price moves to $61,000, it will most likely meet all the requirements for a perfect bullish Ichimoku breakout on the weekly Ichimoku chart. If this scenario were implemented, Bitcoin would be on its way to all-time highs.
BTC / USD $1,000 / 3-box Reversal Point & Figure Chart
Because of the Point and Figure setup structure, there is no invalidation point for the long theoretical entry. If Bitcoin continues to slide south, entry and stop move in tandem – but profit target remains.
Ethereum price for a strong and fast trend reversal, $4,000 in bulls cross
Ethereum price is likely to prepare for a quick and amazing bullish reversal very soon. The reasons for this impending reversal are based on the support found against the 50% Fibonacci retracement on the weekly Ichimoku chart and the hidden bullish divergence between the candlesticks and the Composite Indicator – the Composite Index reached its lowest levels since September 2019.
ETH / USD . Ichimoku Weekly Chart
The hidden bullish divergence is a warning that the current corrective move is about to end and that the resumption of the uptrend is likely to continue soon. As a result, there is now a trading opportunity on the point and figure chart.
There is a hypothetical buy entry for Ethereum price on the 100/3-box reversal point chart. The long setting is a buy stop order at $3,400, a stop loss at $3000, and a profit target at $5,500. The default buy entry is a 5.25:1 reward/risk setting with an expected profit target of over 65% of the entry. A three-box Trailing Stop will help protect any profit made after the entry point is reached.
ETH/USD 100/3-box Reversal Point and Figure Chart
As with Bitcoin, there is no invalidation point for the Ethereum price within the default buy setting. If Ethereum moves lower, buy stop and stop loss move with lower price movement, but profit target remains the same.
XRP price was attacked by many bearish dot and figure setups but sellers didn’t follow through
XRP price has a double whammy of bearish activity on the $0.01/3 squares reversal point chart. The descending catapult pattern and the descending triple bottom pattern formed a simultaneous bearish selling formation at the price level of $0.72. Sellers have already pushed XRP to $0.70, but that is the case.
The two bearish short entry patterns are two of the most effective short strategies in point and figure analysis. The bears’ inability or unwillingness to take advantage of the downside structure is critical and warns of an upward reversal.
XRP price has a potential long entry opportunity with a buy stop order at $0.75, a stop loss at $0.71, and a profit target at $0.96. The trade represents a 5:1 return/risk with an implied profit target of approximately 29% of the entry. A controlled stop loss in two funds will help protect any profit made after entering.
XRP / USD $0.01 / 3-box Reflection Point & Figure Chart
Traders should expect some initial resistance at the 38.2% Fib and the Senkou Span A bottom at $0.81. However, this potential long entry is invalidated if XRP price moves to a daily close below the $0.69 price level.