Crypto Crash Fallout: Bitcoin, Ethereum, XRP Price Outlook

The crypto market may have seen the worst of its recent sell-off, but it remains in precarious territory. Following a week of significant losses triggered by hotter-than-expected U.S. inflation data and a broader tech stock downturn, Bitcoin is now positioned at its final major support zone. Meanwhile, Ethereum and XRP continue to exhibit weakness.

According to Josh, an analyst at Crypto World, the coming days could be pivotal in determining the market’s direction for the next two to three weeks.

Bitcoin: Hanging On At The Edge

Bitcoin is currently testing the lower boundary of its support zone, a range between $74,000 and $76,000 that has provided stability for weeks.

The Bearish Case: Should Bitcoin close below the $73,000 to $74,000 level on the daily chart and fail to reclaim it, the next significant target would be the $65,000 to $67,000 range. This zone is critical for two key reasons.

The Bullish Case: On the 12-hour chart, Bitcoin may be developing a bullish divergence, characterized by lower price lows accompanied by higher momentum lows. This scenario is being described as Bitcoin’s “last chance” to initiate a short-term relief bounce. However, any further minor decline could completely invalidate this signal. Even if confirmed, such a bounce would likely be a brief pause of a few days rather than a full-scale recovery. Immediate upside liquidity is observed near the $76,000 mark.

The Long View: The weekly Supertrend indicator remains in positive territory, and a long-term bullish divergence on the weekly chart has not yet been negated. However, if the current weakness persists for several more months, this long-term outlook could shift.

Bitcoin Dominance: The Biggest Risk For Altcoins

Bitcoin’s share of the total cryptocurrency market capitalization is on the rise, currently testing the 60.5% to 61% range, a resistance level that has held firm for approximately a year.

A sustained close above roughly 61.5% on either the three-day or weekly chart would signal a significant shift towards a prolonged uptrend in Bitcoin dominance. This development is being flagged as potentially “devastating” for altcoins, particularly at a time when Bitcoin itself is experiencing a cooling period. In such a scenario, many large-cap altcoins could face substantial price drops.

While this breakout has not yet occurred, it appears to be imminent.

Ethereum: One Last Chance For A Bounce

Ethereum continues to display a bearish divergence on its daily chart, a pattern that has indicated weakness for over a month. Similar to Bitcoin, ETH may be forming a bullish divergence. This would represent the first indication that the current downturn is abating, but it requires confirmation.

If ETH experiences even a slight further decline, momentum indicators could reach new lows in tandem with the price, thereby invalidating the bullish setup and suggesting further downward movement.

XRP: Oversold, But Still The Weakest Link

XRP has fallen into oversold territory on the daily chart, yet its bearish divergence remains active. Josh’s analysis indicates that XRP tends to experience steeper declines than Bitcoin when the market loses momentum and rallies more aggressively during strong bull markets.

Support levels to monitor: