Knife Catching 101, Wiggle Room and Papercuts

by James · July 22, 2022

Bitcoin price is in surplus and continues to show bullish signals. But things can change quickly.
Ethereum price looks set to rise higher. The risk is reduced according to the bearish divergence on the Relative Strength Index.
Ripple price is at a critical point in the market. No favorable setups at the moment.

The crypto market has provided dozens of profitable opportunities for traders willing to engage. At the current time, the market shows potential for more upside gains. Still, qualifying when to call Crypto Season over will separate profitable traders from the brave ones who couldn’t succeed and the spectators who couldn’t be brave.

Table of Contents

Bitcoin price maintains a bullish stance

Bitcoin price is currently trading at $23,608. The peer-to-peer digital currency maintains a macro bullish stance and proves that more short-term gains are in the works. Short-term targets lie at the $25,800 level, while a break of $22,000 could be the catalyst to end the short-term uptrend scenario.

Bullish confluence of Bitcoin prices is currently hovering above a macro level of 38.2% Fibonacci retracement. Fib tool surrounds BTC price action, from pandemic lows of $3,500 to all-time highs of $64,000.’

Traders from Monday’s forecast are now in profit 2x the original risk. Bulls looking to join the trend will likely experience paper cuts and liquidity scrambles along the way. The congestion shown is expected before an influx of volatility enters the market. The choppy price will either drive an additional rally towards $25,800 or a decline below $22,000, which is what most sideline investors might be hoping for.

Invalidation of the uptrend scenario has increased to $22,000 to reduce risk. If $22,000 is breached, the bears could redirect south, targeting $19,600 and possibly $17,500 for up to 25% reduction in bitcoin market cap.

tm/btc/7/22.22

BTC/USDT 8-hour chart

In the following video, our analysts dive deep into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team

Ethereum price has wiggle room to fall before more gains

Ethereum price is currently trading at $1,580, just above Ethereum’s first target zone from the July 17 bullish thesis. Traders are now in profit 1x the risk. There is an uptick in bearish volume on intra-hour time frames, which could be a hopeful indicator for investors on the outside.

Still, the slope of the current climb is quite steep, leaving enough wiggle room for smart money to go for another liquidity chase as low as $1,290 without invalidating the bullish midterm thesis. A Fibonacci retracement indicator surrounding the steep rise confuses the idea of wobble with a 50% fib level at $1293. The Relative Strength Index also shows subtle bearish divergence near the current price level of $1,580, warranting the idea of a possible liquidation hunt.

Thus, it is unfavorable to place an additional entry at the relevant time. A knife-catching opportunity could present itself within the $1,300-$1,350 zone in the coming days, with a bullish target of $1,900 after the plunge. Invalidation of the uptrend scenario is now a break below $1,270.

tm/eth/7/22/22

ETH/USDT 8-hour swing range

In the following video, our analysts dive deep into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team

Ripple price still has an unclear path in the medium term

Ripple price breaks a short-term rising trend line. The digital transfer token has not shown clear evidence to warrant a favorable setup for bullish trading.

The Relative Strength Index is showing a double-top pattern accompanied by bearish divergence on the 8-hour chart. It may be best for traders to consider other opportunities in the crypto market, as the medium-term path remains unclear.

Invalidating the bearish thesis is a break above $0.4807. A break above the invalidity barrier could foster a favorable trading environment for bulls to target $1.20 for up to 233% upside from the current Ripple price.

tm/xrp/7/22/22