- Bitcoin price is finding support as price action gets underpinned at $28,695, sparking a turnaround in sentiment.
- Ethereum price bounces off $1,928.89 for the second week in a row, showing bulls are adding more weight to the trade action.
- XRP price is set for one more squeeze to the downside as the final bearish sign before a turnaround.
Bitcoin price, Ethereum and other cryptocurrencies are stabilising after the cryptocurrency space got slaughtered last week and two weeks ago. As price action consolidates further across the board, bulls and investors are buying into price action at the lower end as signs price action is underpinned have started manifesting. Expect to see a rally into the end this week and over the weekend as a few tail risks are set to be taken out of the carry.
Bitcoin price set to jump 22%
Bitcoin (BTC) price is set for a turnaround after a very weary downtrend that has been present throughout May. With several tail risks ballooning, the weight was just too much for bulls to defend the key $30,000 handle (and several levels above) and even now the level looks problematic as bears are using the handle to trap bulls and squeeze them out aggressively. But that playbook scenario is set to change in their disfavour as bulls are starting to buy below $30,000 and, by doing so, are underpinning price action, with $28,695.13 emerging as a key support level which has held for a second week in a row.
BTC price is, therefore, seeing some bullish signs, as together with that new supportive level, the Relative Strength Index (RSI) is flatlining and could start to trade up a bit as a sign that bulls are buying into the price action, and outweighing bears. That would translate itself into BTC price action popping above $32,649.28. In case of a daily close above that level this week, the jump would be set for a lift towards $36,709.19, which would start to weaken the downtrend and possibly break it going into next week.
BTC/USD weekly chart
Bears could use the same strategy, however, by massively shorting BTC price at $30,000 and running price action down again in a bull trap. In such a scenario, bulls could get squashed against $28,695.13, creating an open gap with BTC price falling towards $24,000 again, as it did three weeks ago. After that it could possibly take longer for bulls to define a supportive level again, as this would mean further tarnishing Bitcoin price’s already dented image.