- Bitcoin price returns to a price level that could prevent further downside risk.
- Ethereum price erases weekly losses to bring ETH into positive territory.
- XRP price moves closer to the critical $0.75 zone, then $1 above that.
Bitcoin price action has generated a significant amount of buying during the early NY trading session, pushing higher by more than 5%. Likewise, Ethereum price has rallied over 24% from the weekly lows. XRP price continues to lag BTC and ETH in performance, but a rally of its own is likely to develop very soon.
Bitcoin price targets a return to $40,000
Bitcoin price is setting up for a significant spike higher – or an aggressive and bearish continuation move. On the daily Ichimoku chart, Bitcoin’s intraday resistance is the Tenkan-Sen at $38,275. Failure to move and close above the Tenkan-Sen on the daily chart could trigger a resumption of selling – this is especially true for today due to the first ‘Fed Day’ of 2022.
If buyers can rally Bitcoin to a close above the Tenkan-Sen, then the next resistance zone to test is a value area between $40,000 (Kijun-Sen) and $41,000 (61.8% Fibonacci retracement).
BTC/USD Daily Ichimoku Kinko Hyo Chart
Upside potential beyond $40,000 is likely limited to the 50% Fibonacci retracement at $45,500. Downside risks are limited to the 2022 swing low at $33,000.
