Bitcoin price has witnessed a dramatic weekend after negative headlines hit the market. The Chinese government has decided to further crackdown on cryptocurrencies by ceasing BTC mining operations in a major province in the country and further followed up with a reiteration of a ban on all digital asset transactions in the country.
Bitcoin price bounces back from sharp plunge as bulls take charge
Bitcoin price bled following the death cross appearance on the daily chart. The leading cryptocurrency continued to lose momentum, plummeting below the critical support at $30,000 and even traded at below $29,000. However, BTC quickly recovered from the drop, rallying back to above $34,000.
Now, Bitcoin price has managed to escape above the critical demand barrier that ranges from $29,849 to $32,289, holding this area as support. The break above the lower trend line of the symmetrical triangle formed since May 19 also adds fuel to the BTC recovery.
Speculators should note that the $32,289 level acts as significant support as this was the February low, before Bitcoin price dramatically rose over the course of the following few months.
Currently, Bitcoin has bounced back following the dreading news of the world’s second largest economy banning the cryptocurrency, as well as accumulative selling pressure that has taken a toll on the leading digital asset.
Bitcoin price is back trading within the symmetrical triangle, and BTC could target the upper trend line of the chart pattern at around $36,000 if buyers continue to confirm accelerating interest.
Should Bitcoin be able to hold $36,000 as support, BTC is most likely headed higher toward the 38.2% Fibonacci extension level, coinciding with the 50-day Simple Moving Average (SMA) as the next level of key resistance.
However, if the bears take charge again, Bitcoin price would see itself retesting the demand barrier as mentioned above. Investors should note that these levels of support and resistance could act as areas to set stop-losses and take-profit trades.
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Ethereum price has yet to follow Bitcoin recovery
Ethereum price losses have been saved by the 200-day SMA, its recovery still looks bleak as ETH is slow to gain momentum.
Ethereum price is sitting comfortably above the 200-day SMA as support, and even indicated two buy signals from the Momentum Reversal Indicator. However, there are strong resistances ahead, as it trades within the demand zone but would still need to break above $2,142 to tag the lower trend line of the symmetrical triangle.
Although further losses are not expected at the moment given the trade set up, the prevailing direction for ETH price appears to be sideways for now.
XRP price struggles to bounce back
XRP price has completed a head-and-shoulders formation that started from May 23 and lasted until June 19, when the bearish pattern was confirmed. Ripple has dropped below the downside target that was expected of the coin, which proves critical once again of using a stop-loss.
XRP is currently in dangerous waters as it is still trading within the demand barrier, struggling to tag the upper level of $0.65 as support. The current daily candle also does not appear to be of a bullish engulfing pattern, further questioning whether Ripple would be able to recover from the recent drop.
If Ripple sees a higher distribution of buyers than sellers, it could aim to tag the 200-day SMA before hitting resistance at the neckline of the pattern at $0.79.
ADA price recovery lags behind
ADA price is making a bottom recovery toward the 23.6% Fibonacci extension level at $1.35.
It is essential for investors to note that the recent plunge has marked $1.00 as a significant support level as Cardano has retested this line of defense on May 19, May 23, and June 22. Significant purchasing volume also added fuel to this recovery.
While Cardano is currently printing a long green candle toward the upside, only a close above $1.35 should confirm accelerating interest.