- Bitcoin price is expected to fall firmly below $19,000 as the largest cryptocurrency lender files for bankruptcy.
- Ethereum price is set for another investor exodus as confidence in cryptocurrencies grows ever weaker.
- XRP price will plunge 45% as headwinds continue to blow, with more failures to come.
Bitcoin, Ethereum and other cryptocurrencies have their existence challenged and are lit from left to right. Overnight, Celsius Network, one of the largest crypto lenders, filed for bankruptcy with between $1 billion and $10 billion in assets and liabilities, and 100,000 creditors lined up to pluck the chicken. Random measures like preventing customers from making withdrawals, fundraising at shark rates, and reducing manpower were too small a piece of the big bleeding wound. This begs the question of whether investors should turn their backs for a few more months so that the crypto winter can clear the playing field and weed out the weak and weak so that only reliable crypto currencies and services remain.
Bitcoin price needs to be revised to $16,000
The price of Bitcoin (BTC) has yet to reassess after the domino effect when Celsius Network filed for bankruptcy in New York. This indicates that the cryptocurrency market capitalization could generate between $1 billion and $10 billion, as that was the size of the bankrupt crypto lender’s asset balance. Any selling into the USD points to another outflow of funds that won’t be back any time soon.
Therefore, BTC price should drop back to $19,036 and could see traders pushed against this barrier to start closing their positions. In doing so, they could join the bearish army and see sell-side orders prevail over buy-side volume, triggering another leg lower in price action. When the bears are able to push the price action below $19,000, expect to see this zone open up, with support lining up at $16,020, signaling that BTC price could drop further by 20%. .
BTC/USD daily chart
The markets were already mentioning the Celsius blackout a few weeks ago. Most likely, traders have previously positioned for this, which could lead to a moderate drop, but not anywhere near $19,036; instead, it points to a recovery towards $21,969. By doing so, Bitcoin’s range trading would remain intact and could persist into the summer.
Ethereum price could drop below $700
The price of Ethereum (ETH) is no different from the Bitcoin reviews that you can read in the previous paragraphs. Additionally, the price action of ETH has another element that weighs on its future outcome: the harsh rejection it suffered on July 8. A triple top is forming at $1,243.89, and with no daily close above this level, it is clear that the past few days are simply the result of a strong bearish rejection and a bull trap pushing traders lower.
ETH price therefore sets in a pattern similar to that of Bitcoin price action, first testing $830 and pushing traders against that level to get them out of their long positions, triggering a blowout. sell order exponential. The additional elements that the breakout of Celsius has caused, coupled with another dent in trader confidence around crypto, should be enough to break support at $830 and send another leg towards $656, falling further below. of $700.00.
ETH/USD daily chart
As long as ETH price can refrain from hitting new lows for the week, losses could still be recovered, and traders may even be in for a surprise to the upside. Not right away, but $2,000 or $1,688 would be at stake. With the crypto winter still far from over, a small rally towards $1,300 could yet be printed and generate well-deserved gains for brave traders who venture into crypto bull trading this winter.
XRP price on the brink of collapse
Ripple (XRP) price is the most sensitive of these top 3 cryptocurrencies to negative news. Expect the Celsius news to have the biggest impact on Ripple’s price action as Ethereum and Bitcoin are better able to hold their action together, despite moving in the same direction. Seeing this character attributed to the XRP price reaction, expect to see a big loss materialize in the near future.
Not only could the price of XRP see a 20% drop, but it could also be further affected by the domino effect, potentially leading to a whopping 45% price devaluation and cash flow exodus triggering another bite on its market capitalization. With this out, expect the relative strength index to return to oversold territory and the support at $0.3043 will not hold for long. Instead, new multi-year lows could be printed around $0.1737, which was the December 2020 low.
XRP/USD daily chart
Some support could come from markets reassessing the situation after Wednesday’s US inflation data, seeing that most of the next steps for the Federal Reserve and other central banks have been priced in. On the back of this, with the worst elements already in price, it could activate some room for gains to the upside and see the price of XRP go a little higher. This would set targets at $0.36 and $0.37 for short-term profit-taking, keeping the range trading game intact through the summer months.