- Bitcoin price continues to move sideways after the 16% sell-off that occurred last week.
- Ethereum price edges near a key level of interest. More upside should not be ruled out.
- Ripple's XRP price is likely to liquidate bulls who entered the market at the beginning of the summer.
The crypto market shows concerning signals under the hood while retail traders place their wagers on the next directional move. Based on on-chain analysis, an additional plummet is highly probable. For this reason, being an early bull is ill-advised.
Bitcoin price needs work
Bitcoin price currently auctions at $21,561 as a sideways range follows the 16% sell-off that occurred on Friday, August 19. The Volume Profile index remains sparse, signaling that high-cap players lack confidence. It is likely the current trading range is retail traders looking to latch on to the next directional move.
Bitcoin price hovers above the 50% Fibonacci levelsurrounding the entirety of the bullrun accomplished this summer. Traders seeing this have a justified reason to want to participate in an early buy, but based on the lack of volume and lackluster price action, being an early bull is ill-advised.
Traders from last week’s bearish trade setup are still profitable, and the first target at $18,900 has yet to be breached. Moving the risk into profit would be highly risky as a fractal wave of Bitcoin’s prior performance could result in a liquidity hunt tagging as high as the $23,000 price level. Invalidation of the bearish trend remains at $27,000.
BTC/USDT 4-Hour Chart
In the following video, our analysts deep-dive into Bitcoin's price action, analyzing key levels of interest in the market – FXStreet Team