- Bitcoin price hits $56,000 faces selling pressure during the Friday trade session.
- Ethereum price is showing signs of exhaustion, momentum slowing despite primary bullish breakout conditions.
- XRP price remains muted and mostly unresponsive compared to Bitcoin and Ethereum
Bitcoin price appears to have hit a minor top, with selling pressure pouring in during the late morning and early afternoon New York trade session. A bearish hammer candlestick pattern is developing, indicating a high is likely in. Ethereum shows some mixed behavior on its chart. Despite having an extremely bullish Ichimoku chart, buyers are not pursuing any follow-through to propel Ethereum price higher. XRP price remains in a very stagnate position.
Bitcoin price at a temporary top
Bitcoin price has made spectacular gains since last Friday, moving higher nearly 28% in a week. However, the current daily price action looks a little top-heavy, with some selling pressure coming at the $56,000 value area. I anticipate a -13% drop from the $56,000 level to return to the Tenkan-Sen between $48,000 and $50,000. There is a substantial gap between the daily candlesticks and the Tenkan-Sen; gaps do not last long between price and the Tenkan-Sen.
BTC/USD Daily Ichimoku Chart
Additionally, the Optex Bands oscillator shows Bitcoin is trading at extremes. The Composite Index has been trading at the second-highest level since July 29th and the third-highest level since December 19th, 2020. If the Relative Strength Index returns below the 65 level, we could see a continuation move south for Bitcoin that may extend beyond $48,000.
