- The price of bitcoin is in a potential rally that could take it to $22,600.
- Ethereum’s price recovery could only push it up $1,650 due to multiple hurdles.
- Ripple price is slowly recovering as it struggles with the $0.340 support level.
The price of bitcoin has experienced a massive sell-off over the past four days and has been trying to consolidate and rise ever since. Some altcoins are recovering much better than Ethereum and Ripple. However, a recovery rally seems likely for the crypto markets.
The Australian government agrees that over a million users have interacted with cryptocurrencies since 2018, so it is taking a different approach to regulating the crypto space. To do this, the Australian federal government will create a “token map” for crypto assets. This decision is designed to protect investors and protect them from themselves. Treasurer Jim Chalmers said:
Currently, the cryptocurrency industry is largely unregulated and we need to do some work to find the right balance so that we can leverage new and innovative technologies while protecting consumers.
With different countries taking different approaches to regulating the cryptocurrency space, Bitcoin appears to be poised for a recovery ahead of the next step.
Bitcoin Price Eyes Recovery
The price of bitcoin fell 12% between August 18 and 20 to hit a low of $20,750, the fourth equal low formed since July 18. Although the rally has pushed BTC towards $21,500, the upside seems to be capped at $22,600.
A failure at the aforementioned level followed by a jump to $20,750 seems plausible. Therefore, investors should be wary of a premature rally.
4-hour BTC/USD chart
While Bitcoin prices are improving, a breakdown of the $20,750 support level and its transition to the resistance level will delay the recovery rally. In such a case, BTC could crash to $17,578 to collect liquidity, staying below the swing lows formed between June 18 and July 13.
Ethereum price prediction remains so-so
The price of Ethereum also fell by about 19% after the Bitcoin signal between August 18 and 20. However, the recovery seems to be much shorter as ETH is already recovering. Investors can expect a slight rally to $1675 to make up for the inefficiency and trigger a reversal here.
However, in some strange cases, this movement can reach $1,730 and form a local maximum there before turning around and continuing the downtrend. Regardless of where the local high forms, the price of Ethereum should retest the imbalance down at $1,474.
ETH/USD 4-hour chart
While recovery targets appear to be mixed, a pullback from the $1,730 barrier will signal a resurgence of buyers. However, a higher high above the recent $2019 tipping point will invalidate the bearish Ethereum price thesis.
Ripple price is poised for some bounce
The price of Ripple is hovering around the $0.340 mark, excluding directional bias. The Bitcoin recovery rally is the only thing that could push the price of XRP higher.
In such a case, investors can expect the discount token to hit the $0.360 resistance level. The recovery rally is likely to form a local top here before turning around and potentially selling the remaining liquidity below the equal lows formed at $0.326.
XRP/USD 4-hour chart
On the other hand, if the price of Ripple turns the $0.381 barrier into a support level, that would invalidate the bearish thesis by breaking the longstanding resistance level. In such a case, investors can expect the price of XRP to break the $0.439 barrier.