Crypto markets are scrambling for recovery before the next crash

by Arthur · August 22, 2022

Bitcoin price is in a potential recovery rally that could push it up to $22,600.
Ethereum price recovery could only push it up by $1,650 due to several obstacles in its way.
Ripple price is slow to recover as it struggles with the $0.340 support floor.

Bitcoin price saw a massive selloff in the last four days and has been trying to consolidate and recover ever since. Some altcoins have been much better at mining than Ethereum and Ripple. Regardless, a mining rally seems plausible for the crypto markets.

The Australian Government agrees that more than one million users have interacted with cryptocurrencies since 2018, as a result it takes a different approach to regulating the crypto space. In this effort Australian federal government is said to create a “token map” for cryptoassets. This move is to protect investors and protect them from themselves. Treasurer Jim Chalmers stated,

As it is now, the crypto sector is largely unregulated and we need to work a bit to find the balance so that we can embrace new and innovative technologies while looking after consumers.

While different countries take different approaches to regulates the crypto spaceBitcoin looks poised for recovery ahead of next leg down.

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Bitcoin price sees recovery

Bitcoin price crashed 12% between August 18 and August 20 to set a swing low of $20,750, which is the fourth such low since July 18. Although the rise has pushed BTC to $21,500upside appears to be limited to $22,600.

A rejection of the aforementioned level followed by a sweep of $20,750 seems plausible. Therefore, investors should be cautious of a premature recovery.

BTC/USD 4-hour chart

While things are looking on the fence for Bitcoin price, a breakdown of the $20,750 support level and turning it into a resistance level will delay the recovery rally. In such a case, BTC could crash as low as $17,578 to gather liquiditywhich rests under the swing lichens that formed between 18 June and 13 July.

The Ethereum price outlook remains this way

Ethereum price also crashed by about 19% following Bitcoin’s signal between August 18 and 20. However, recovery appears to be much shorter as a result ETH are already on their way back. Investors can expect a minor rise to $1,675 to fill the inefficiency and trigger the reversal here.

But in some rare cases, this move can extend to $1,730 and form a local top there before reversing and continuing its downtrend. Wherever the local peak forms, Ethereum price due to retest the imbalance to the downside at $1.474.

ETH/USD 4-hour chart

Although the recovery targets look ambiguous, a reversal of the $1,730 barrier would indicate the resurgence of buyers. However, a higher high above the recent pivot point of $2,019 will invalidate the bearish thesis for the Ethereum price.

Ripple price poised for some bounce

Ripple price hovering around the $0.340 barrier with no directional bias in mind. The Bitcoin mining rally is the only thing that can push the XRP price higher.

In such a case, investors can expect remittance token to run for the $0.360 resistance level. The recovery rally is likely to form a local top here, before reversing and potentially swapping the liquidity resting below the similar lows formed at $0.326.

XRP/USD 4-hour chart

On the other hand, if the Ripple price turns the $0.381 barrier into a support floor, it will invalidate the bearish thesis by capturing a long-term resistance level. In such a case, investors can expect XRP price to make a transition to the $0.439 barrier.