- Bitcoin price looks like it is starting a small uptrend and swing trade back to $21,969.
- Ethereum's price nears a price cap with the potentially to hit $1,300.
- XRP price still has a long way to go but holds the most potential.
Bitcoin price, Ethereum and other cryptocurrencies are slowly but surely recovering from the uppercut cryptocurrencies received these past few weeks and months. The pain trade is not over yet, as shown by the Fund Manager Survey from Bank of America which revealed that hedge funds held a fire sale of all risk assets, which is the cause of the bear market that is currently overshadowing global markets. As liquidity wears thin, bulls need less cash to ramp up price action and provide a little air to lift the much-battered cryptocurrencies.
Bitcoin price is on the cusp of booking 20% gains
Bitcoin (BTC) price is starting to return to the land of the living after its hibernation during the cryptocurrency winter. Although the pain trade is not over, and investors should not jump on everything that moves to the upside, some unwinding of the bearish elastic band is underway. This means that there is a window of opportunity for Bitcoin price to move higher and make some gains, and at the same time pull the Relative Strength Index (RSI) out of oversold, cooling it down, and further encouraging bulls to pull the trigger.
BTC price is set up for a perfect swing trade, with a bounce off the $19,036 handle then rallying to an upside target near $21,969. That means a solid 15% profitable trade as long as the uptrend is respected and higher lows can be generated. Once a trading day breaks the pattern, however, a reversal and return to the base at $19,036 is the most likely outcome.
BTC/USD daily chart
Risk to the downside comes with the lack of big investors and capital to push price-action back deeper into the +$20,000's. Bears could see the opportunity to build a massive short position again as BTC price moves up, leading to a full collapse back to $19,036. Bulls will get stopped out and might see another fold as price action drops back towards $16,020.
