Crypto bloodbath likely to continue until late March


  • Bitcoin price action shows a bearish continuation if the bulls fail to support BTC.
  • Ethereum price drops below two critical support levels, confirming a likely sell-off.
  • XRP price hits a major resistance group and sellers like to take control.

bitcoin price continues to slide south, with warning signs that a major downside breakout is becoming more likely. Ethereum price confirms a likely resumption of selling pressure. XRP price is hanging by a thread and poised for another major swing to the downside.

Bitcoin Price Hints at Bearish Continuation Amid Global Uncertainty

bitcoin price action is a victim of the broader, global risk aversion due to the continuing Russian invasion of Ukraine. As a result, the commodity, stock, forex, and cryptocurrency markets have seen massive price swings. As the riskiest of risk assets, Bitcoin and the rest of the cryptocurrency market are particularly affected by any risk avoidance.

Bitcoin is approaching a turning point from a price action perspective. BTC confirmed an ideal bearish breakout of Ichimoku on Saturday, creating the first such confirmed entry since Dec 4, 2021. Typically, this type of short entry triggers massive short interest and subsequent selling pressure. However, the bears have been unable or unwilling to push BTC lower.

The only support level left for Bitcoin price on its daily chart is the bottom of the current bear flag at $38,000. If $38,000 fails to hold as support, Bitcoin price is likely to move towards the next Fibonacci expansion level between $30,000 and $30,500.

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Ichimoku Kinko Hyo BTC/USD daily chart

However, Gann’s important seasonal date of March 21 is approaching. Historically, when the price of Bitcoin trades at a high or low around March 21st, massive long trend moves begin. Given the current time cycles coinciding with the downtrend, a bullish reversal is becoming more and more likely near the end of March.

Ethereum price may plummet towards $1,800

ethereum price confirmed and Ideal Bearish Ichimoku Breakout last Friday, with a close below the Ichimoku Cloud. The bears were initially unable to push ETH lower due to the shared support zone at $2,570 – the 61.8% Fibonacci retracement and the lower trend line of a bear flag. The Fibonacci retracement stems from the all-time high to the low of the strong bar from the July 2021 rally to November 2021.

Sunday’s close then confirmed a break below the bear flag and the 61.8% Fibonacci retracement. During intraday trading on Monday, the bulls tried to push the price of Ethereum back inside the bear flag, but failed.

The same attempt to return ethereum price inside the bear flag it happened today. Sellers were able to push Ethereum price to a close below the crucial 61.8% Fibonacci retracement on Monday, and buyers attempted to rally ETH above that crucial level on Tuesday. However, as ETH neared the 2022 volume checkpoint and bearish pennant, selling resumed in earnest.

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ETH/USD Ichimoku Kinko Hyo Daily Chart

The initial target for the bears is the Fibonacci 100% expansion to $1825, but sellers are likely to stop at the bottom of the weekly Ichimoku Cloud (not shown) at $2300. The bottom of the weekly Ichimoku Cloud has been a major support level for Ethereum price and has yet to break out of support.

Upside potential for Ethereum is likely limited to the 50% Fibonacci retracement and Ichimoku Cloud (Senkou Span A) bottom at $2,900 for the week.

XRP price fails to return inside Ichimoku Cloud, bears take over and push XRP to $0.50

XRP Price it completed all the required criteria for an Ideal Bearish Ichimoku Breakout on its daily chart on Sunday. There was some hope that the bulls could prevent further selling on Monday as buyers pushed XRP back into the Ichimoku Cloud and above the Tenkan-Sen, but that hope was short lived. The subsequent rejection likely confirms that further selling pressure for XRP will begin soon.

The first projected target for the short sellers is probably the 50% log Fibonacci retracement from the most recent high of $1.96 to the weekly strong bar low of $0.22 which is at $0.64. If $0.64 fails as support, then the next support level for XRP price does not appear until 61.8% Fibonacci pullback to $0.49.

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XRP/USD Ichimoku Kinko Hyo daily chart

If the bulls want to avoid the short-term bearish outlook to XRP Price, they will need to complete an ideal bullish breakout of Ichimoku. Unfortunately, that is a difficult target for bulls to achieve because not only does the price of XRP need to close above the Ichimoku Cloud, the Chikou Span needs to close above the candlesticks and be in an open space – a close in $ 0.85 is the minimum price level to confirm an ideal bullish breakout of Ichimoku.