- Bitcoin price retests the parallel channel’s lower trend line, threatening a make-or-break scenario.
- Ethereum price invalidates the $2,800 to $3,000 support cluster, hinting at a crash to $2,541,
- Ripple price digs deeper into the $0.626 to $0.689 buy zone, indicating that bulls are slowly losing control.
Bitcoin price approaches close to the last defensive support level, putting the fear back in retail traders’ minds. Likewise, Ethereum and Ripple have also crawled closer to significant barriers, suggesting that they are ready to follow suit.
Bitcoin price reevaluates directional bias
Bitcoin price has been describing an ascending parallel channel on a three-day time frame for roughly three months. It has connected the higher highs and higher lows formed from January 14, to outline the channel’s formation.
The last two times BTC tagged the lower trend line, it recovered and rallied explosively. Interestingly, both these times, the candlestick bodies closed above the 200 three-day Simple Moving Average (SMA).
This time around, things are different as BTC has dropped slowly below the 200 three-day SMA at $40,084 and tagged the lower trend line of the ascending parallel channel. Such a development indicates that the bulls are losing control.
A bullish engulfing candlestick on the three-day chart would alleviate the bearish pressure and trigger an upswing. In such a case, investors can expect BTC to retest the 50-day and 100-day SMA at $42,035, $41,001.
Flipping these hurdles into support levels could see the big crypto rally toward the yearly open at $46,198 and in some cases, the $50,000 psychological level.
BTC/USDT 3-day chart
A daily candlestick close below the $34,752 support level will invalidate the ascending parallel channel and the bullish thesis.