The weekly RSI for Bitcoin (BTC), Ethereum (ETH) and XRP prices fell to a new record low in July. It has since recovered and generated bullish divergence in the case of BTC and XRP, while for Ethereum it broke above a resistance line.
Bitcoin Price Prediction: The Biggest RSI Divergence Ever
Bitcoin has been trending lower since its all-time high of $68,944 reached in November 2021. This downward movement led to a low of $15,599 reached on November 11.
If we compare this drop to previous Bitcoin bear markets, it would be logical that the price of BTC is close to reaching a bottom. The crypto market corrections that took place in 2014 and 2018 saw declines of 86% and 84% respectively. The current drop is 77%.
Additionally, previous corrections lasted 413 and 364 days respectively. The current correction has been ongoing for 378 days.
There is also interesting information on the weekly RSI, which reached a new all-time low in June 2022, its value of 25 being below the lows of 2015 and 2019 (red arrows). Finally, the weekly RSI generated its largest bullish divergence (green line) to date. These divergences often precede bullish moves.
However, if the weekly RSI does not start a bullish move, then the next support zone would be at $14,000.
Thus, the price movement over the next few weeks will be crucial in determining Bitcoin’s long-term development.
Has Ethereum completed its withdrawal?
ETH is the native token of the Ethereum blockchain created by Vitalik Buterin. A technical analysis of its weekly chart shows that the asset’s price has been declining since hitting an all-time high of $4,868 in November 2021. ETH fell to a low of $881 in June 2022.
Unlike Bitcoin, the Ethereum price did not cross its annual low in November. On the contrary, the price action has since been relatively bullish and generated an upper bottoming pattern (green arrow). These two lows also validated a long-term ascending parallel channel.
As for the RSI, the difference between Bitcoin and Ethereum comes from the fact that that of ETH does not show a bullish divergence. However, it broke above its descending resistance line (green line).
Thus, a price move above the $1,350 area would point to a bullish prediction for ETH price. On the contrary, a weekly close below the resistance line of the channel would rather indicate a bearish prediction.
XRP: a breakout in price that could lead to a rally
XRP has been trading below a descending resistance line since April 2021. The line has been validated multiple times (red arrows), the most recent being in October 2022.
While following this line, XRP price rebounded at the $0.30 long-term horizontal support zone (green arrow). This also caused the RSI to create a bullish divergence (green line). That said, the indicator did not break above its resistance.
Thus, the movement of the RSI of XRP is closer to that of Bitcoin than that of Ethereum.
That said, the price movement itself is more akin to that of ETH. A break below the $0.30 horizontal support zone would confirm that the forecast for XRP price is bearish. Conversely, a move above the falling resistance line would imply a bullish outlook. This resistance line is currently located at an average level of $0.43.
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