Cryptos at a fork in the road

Bitcoin price falls into a key Fibonacci level.
Ethereum price shows the possibility of a recovery rally.
Ripple price could be setting up for one more low within the coiling range.

The crypto market is at a crossroads. The next move will likely determine the trend for weeks to come. Key levels have been defined.

Bitcoin price at a fork in the road

Bitcoin price currently trades at $20,503. After being rejected from the $21,000 level on Wednesday, October 26, the peer-to-peer digital currency fell 4%. As it hovers a few hundred dollars above the 2017 all-time highs at $19,600, leaving investors to wonder, what will happen next?

Bitcoin price breached overbought conditions upon the previous rally. If a bounce is to occur, a divergence between swing lows on the Relative Strength Indicator would be ideal for sidelined bulls to enter the market. Currently, the RSI does not show a divergence but is coming down to test previous resistance zones as support. If the market is genuinely bullish, $22,000 could be the next target, provided that support is established soon.

The bulls have yet to retest the 8-day exponential moving average (EMA) at $19,700 after piercing through it earlier in the week. A Fibonacci retracement tool surrounding the strongest part of this week’s rally shows the current low within the sell-off as a 61.8% retracement. The bears’ ability to head any lower would be concerning for the health of the uptrend.

The bullish thesis would be void if the swing low at $18,650 were tagged. If the bears happen to re-tag that level, a further decline toward the October 13 lows at $18,300 would likely commence. Such a move would result in an 8% dip from Bitcoin’s current market value.

BTC/USDT 4-Hour Chart

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team

Ethereum shows strength

Ethereum price witnessed a 5% bounce during the final Friday of October. Ethereum, the decentralized smart contract token, fell into the mid $1,390 level during the overnight session and rebounded with an uptick in volume by New York’s opening bell.

Ethereum price auctions at $1,545. If the market is genuinely bullish. ETH’s price should propel toward the $1,600 level over the weekend. Traders should keep the decentralized smart-contract token that has yet to retest the ascending trend channel, which broke through earlier this week. A break below the swing low at $1,450 could trigger a sell-off into the lower half of the trend channel at $1,407.

ETH/USDT 4-Hour Chart

In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team

XRP price could print a new low

XRP price is in a challenging situation. As the trading range coils from October’s highs at $0.54 to the lows at $0.42, most of the trading has taken place near the lower half. The digital remittance token remains submerged as low volume continues to signal a bullish lack of interest.

XRP price auctions at $0.4676. An optimistic signal is that the 8-day exponential moving average has provided support, enabling Ripple’s ongoing 3% bounce. The bad news is that the 21-day simple moving average rejected the price prior, and the volume shown does not look substantially different from Ripple’s previous attempt.

A failure to hurdle the 21-day simple moving average at $0.48 could lead to a sweep-of-the-lows-event targeting $0.41. Such a move would result in an 11% decline from the current market value.

Invalidation of the bearish idea is a breach above the October 27 swing high at $0.48. If the bulls manage to reconquer the $0.48 barrier, an additional rally targeting September highs at $0.56 could occur. Such a move would result in an 18% increase from the current XRP price.