FXEmpire.com –
Key Insights:
- Leading cryptocurrencies trade sideways amid hotter-than-expected CPI data and FTX liquidation approval.
- Bitcoin confirms bear trap, support at $25,000; resistance at $28,00.
- Ethereum confirms bear trap, support at $1,500; resistance at $1,740.
- XRP holds above established trendline, support at $0.46 and $0.4175; resistance at $0.54.
Bitcoin, Ethereum and XRP Forecast Video for 14.09.23 by Tim Smith
Leading cryptocurrencies traded mostly sideways in Thursday’s Asian session as investors digested a hotter-than-expected U.S. consumer price index (CPI) reading and the approval for bankrupt crypto exchange FTX to begin liquidating its digital assets to pay creditors.
While headline CPI came in at 3.7% year-over-year (YOY), it was only marginally higher than economists’ forecast of 3.6%, driven primarily by rising oil prices. Moreover, core CPI, which deducts food and energy costs, fell to 4.3% last month from 4.7% in July.
Meanwhile, U.S. Bankruptcy Judge John Dorsey approved on Wednesday FTX’s proposal to sell up to $100 million in cryptocurrency per week and enter into hedging and staking agreements that will allow the defunct exchange to minimize the risk of price volatility and earn passive income on more established digital assets like Bitcoin (BTC) and Ethereum (ETH). A recent filing disclosed that FTX held $3.4 billion in cryptocurrencies, including $1.16 billion in Solana (SOL), $560 million in Bitcoin, and $192 million in Ethereum.
Below, we use technical analysis to point out important trading levels to watch in Bitcoin, Ethereum, and Ripple’s XRP (XRP).
Technical Analysis: Bitcoin, Ethereum and XRP
Bitcoin
After breaking down below a descending triangle, Bitcoin’s price promptly staged a reversal at key support and now trades back above the pattern’s lower trendline, confirming a bear trap. Moreover, volumes have also inched up over the past week, indicating an increased level of trading activity. Further upside here could give bulls confidence to test the next level of overhead resistance around $28,000. However, a failure to hold above the 50 SMA could see a revisit of the closely-watched $25K area.
Ethereum
Ethereum’s price has also confirmed a bear trap by closing back above the lower trendline of a descending triangle. However, the bulls remain on edge with the 50 SMA continuing to provide considerable resistance. A close above this indicator could see a move up to the $1,740 level, where the price encounters resistance from a multi-month horizontal trendline. Conversely, a breakdown beneath this week’s low could see bears claw the price down to longer-term support at $1,500.
XRP
Although XRP’s price hasn’t confirmed a bear trap, it remains above a key horizontal trendline. Volumes have increased compared to recent weeks but still remain substantially lower than when the court handed Ripple a favorable summary judgement back in mid-July. If bulls can reclaim the 50 SMA, look for a possible test of the top trendline of a previous trading range at $0.54, However, a breakdown here would likely see a revisit of crucial support at $0.46, with the possibility of a decline to longer-term support at $0.4175.
This article was originally posted on FX Empire
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