• Bitcoin price is consolidating after a sharp drop over the weekend.
  • Ethereum price could present a bullish opportunity, but the invalidation level should not be exceeded.
  • Ripple price is showing strong bearish technicals, and lower targets are likely to be breached.

Joseph Guiltoin, the inventor of the infamous medieval guillotine, is said to have been killed by his own invention. Guilotin’s outspoken advocacy against France’s execution measures with his own apparatus would lead to his karmaic demise. Knife catchers can see The fate of Sir Guilotin as a symbol and perhaps a natural law in bearish market environments. Don’t lose your head by reaching out too far.

Bitcoin price drops sharply

Bitcoin price fell back into bullish interest territory for nearly a month, towards the end of July. Bulls that missed the summer rally might be prompted to open a position in hopes that the barrier will repeat history and prompt another.

Bitcoin price at the time of writing auctions at $23,124 as a sideways consolidation unfolds after the August 18 free fall. The Relative Strength Index shows an influx of trading volume, which could support a very volatile market in the days ahead.

Fractal wave theory deriving from previous Bitcoin market behavior in 2018 is used to forecast a possible hunt for smart money liquidity. Placing a bullish entry around current price levels is misguided. Attempting to catch a bottom near the $19,600 area could be a high risk, high reward trade setup. The high-risk invalidation point is unlikely to replace the June 18th low at $17,622.

BTC/USDT 4 hour chart

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

Ethereum price is a dangerous blade

Ethereum price became a key target of interest as the bears caused a massive sell-off over the weekend, breaking above both the 8-day and 21-day simple moving averages. The volume profile indicator shows a reading almost identical to the July 24 liquidity hunt, with a market low set at $1435. The selloff became a catalyst for fake smart money, allowing a 35% rally towards the recent monthly high of $2030.

Ethereum price is currently selling at auction at $1550. The Relative Strength Index has room to fall, which justifies the idea that the bulls should exercise caution when looking for knife-catching opportunities. A second attempt at $1435 could be a good place for knife catchers to start scalping on lower timeframes. The ideal low would be between $1330 and $1350. Upside targets would be between $1,850 and $1,910, but are subject to change as more price action is revealed.

The invalidation of the very risky bullish scenario hinges on holding $1,250 as support. If $1,250 were to be marked at any time in the near future, the bulls should immediately lose their positions; a selling frenzy could occur, targeting the $880 now established on June 18, resulting in a 44% drop from the current Ethereum price.

tm/eth/8/22/22

ETH./USDT 4-Hour Chart

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

XRP Price Approaches Calamity

XRP price appears to be the least likely to succeed among the trio this week. The digital discount token is submerged under a descending trending channel after falling in an Eiffel penny-like fashion on August 19th.

XRP price is currently selling at auction at $0.33. Liquidity levels near $0.325 will likely be marked in the coming days. A bullish divergence pattern was displayed due to the sharp decline of 13%. Traders looking for a bullish bounce (based on bullish divergence) should be warned that divergences within overbought and oversold territories can be smart money traps. XRP price shows the potential to slice straight through the 1st level of liquidity and conquer the $0.30 price zone.

Being a long XRP price is too risky to justify, as the previous outlook has targets as low as $0.24. Thus, investors should consider waiting on the margins of the lower targets or joining the bears unless the macro invalidation point at the $0.0.48 level is breached.

tm/xrp/8/22/22

XRP/USDT 4 hour chart

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