FXEmpire.com –
Key Insights:
- Leading cryptocurrencies bounce from key support levels despite FTX liquidation worries.
- Bitcoin finds buyers near the psychological $25,000 level, support at $21,540; resistance at $26,800.
- Ethereum recovers from heavily oversold levels, support at $1,500; resistance at $1,695.
- XRP holds above established trendline, support at $0.4175; resistance at $0.54.
Bitcoin, Ethereum and XRP Forecast Video for 12.09.23 by Tim Smith
Leading cryptocurrencies continued to trade above New York lows in Tuesday’s Asian session despite an initial sell-off after investors braced for more volatility as defunct crypto exchange FTX awaits regulatory approval later this week to liquidate $3.4 billion in crypto assets.
If given the green light, FTX would be allowed to sell up to $100 million worth of tokens per week, a limit that could be increased to $200 million on an individual token basis. “The incoming FTX liquidation indicates the crypto market could see another US$3.4 billion in crypto-to-fiat off-ramping — a potential liquidity gap that might be hard to fill in the absence of Signature Bank, Silicon Valley Bank, and Silvergate Bank, which were responsible for at least, 50% of all the fiat-to-crypto on-ramping during the last few years,” Markus Thielen, head of research and strategy at digital asset service platform Matrixport, said in a report cited by Forkast.
Outflows Continue
The potential sell-down comes amid data from alternative asset manager CoinShares showing an offloading of $59 million in digital asset investments in the week ending September 8, marking the fourth consecutive month of outflows.
Despite the downbeat market sentiment, Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP (XRP) on Monday all staged impressive turnarounds near key support levels. Below, we identify important trading levels to monitor.
Technical Analysis: Bitcoin, Ethereum and XRP
Bitcoin
The King’s price initially broke down below a closely-watched descending triangle pattern early this week. However, buyers have stepped in near key support at the psychological $25,000 level. Further upside may see a test of resistance at $26,800 where price encounters resistance from the top trendline of a previous trading range and the 200 SMA. Alternatively, a failure to hold $25K may trigger a decline to fresh lows around the $21,540 support level.
Ethereum
While not finding a key level of support like Bitcoin, Ethereum’s price nonetheless staged an impressive bounce after a steep sell-off below a descending triangle. Importantly, the RSI rebounded from heavily oversold levels to above the key 30 threshold. A continuation of the current short-term upside momentum could see bulls test overhead resistance around $1,695. Conversely, a failure to reclaim the bottom trendline of the triangle could spark a fall to support at $1,500.
XRP
XRP’s price has also broken down from a descending triangle pattern. However, key support sits within close proximity to Monday’s low, raising hopes of an upside reversal from these levels. Moreover, like Ethereum, the RSI has clawed back above oversold territory, confirming a change in short-term momentum. Follow-through buying could see a test of major resistance around $0.54. However, a breakdown below support at $0.46 could initiate falls to the next level of major support at $0.4175.
This article was originally posted on FX Empire
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