Decorrelation begins, but which crypto wins?

The crypto market begins to show market divergence between the top moving assets.

Bitcoin price has yet to decide

Bitcoin currently coils in sideways fashion, lagging behind the Ethereum and Ripple, who have already begun ascending. This scenario prompts caution. Will Bitcoin consolidate below the 200-week moving average at the current price of $21,200 and enable a mini crypto trading season in the process? Or will Bitcoin plummet and wipe early Altcoin buyers out of the market. 

Bitcoin still needs to invalidate the downtrend by breaching above $31,000, a long trajectory away from Friday’s $21,200 market value. A breach below $19,728 could be the catalyst to plummet the BTC price to $16800.

Invalidation of the downtrend of the down remains $31,000 unless a new low is formed over the weekend. If $31,000 gets broken, bulls could enter the market upon a pullback and aim for $37,500 in the short term resulting in a 77% increase from the current Bitcoin price.

BTC/USDT 2-Hour Chart

Ethereum price moves ahead

Ethereum price has begun decorrelating from the Bitcoin price action. On Friday, June 24, the ETH price breached the 200 Week Moving Average. A piercing bullish engulfing candle established on the 2-hour chart now supports the ETH price back above $1200.

Ethereum price does show an interesting volume pattern as there is a subtle turning in favor of the bulls. If market conditions are genuine, the Ethereum price should have no problem tackling $1420 and possibly $1535 in the short term.

Invalidation of the bullish thesis is the June 18 low at $881.50.Traders should beware that Bitcoin has yet to move through the 200-week moving average, which exponentializes the potential for a losing trade setup. If $881 were to get breached, the Ethereum price could fall back to $750, resulting in a 37% decrease from the current ETH Price.

ETH/USDT 2-Hour Chart

Ripple leads the race

Ripple’s XRP price has surprised sleeping bulls as the digital remittance token has risen 16% in just a few short hours. The bullish surge comes just two days after Ripple announces plans to hire 100 new employees to bring forth the next phase of their blockchain solutions.

Ripple price currently trades at $0.365 within a previous support level dating back to the May 11 sell-off. If the bull run is genuine, Ripple should hurdle the triangle apex at $0.395 and cross back into the 40-cent price levels. A pullback should commence  somewhere in the mid $0.40 zone and provide an excellent entry for bullish traders, placing a stop loss below the June 19 lows at $0.298.

However, the other scenario could be a sharp drop into new lows, as the current rally could be a zigzag correction. A safe bearish invalidation point is the top of wave four at $0.4650. If 0.465 gets breached, long-term counts towards $1.20 and higher will be back on the cards with confidence resulting in a 237% increase from the current Ripple price.

XRP/USDT 2-Hour Chart