Bitcoin, Ethereum, XRP Forecast: BTC Under Pressure Amid Geopolitical Tensions – FX Empire


Top cryptocurrencies remained under pressure in Tuesday’s Asian session, following a sell-off on Monday amid increasing geopolitical tensions in the Middle East. Investors remain on edge about a drawn-out conflict in the region and the potential for further escalation if other countries get involved in the war.
During Monday’s session, data from crypto analytics site CoinGlass revealed investors had suffered more than $100 million in long position liquidations amid the market plunge, the largest since early September. A crypto liquidation event occurs when the value of a trader’s assets falls below a predetermined threshold, triggering an automatic sell-off to cover losses or repay borrowed funds. This risk management mechanism helps prevent further losses but can lead to substantial asset sell-offs in volatile market conditions.
Below, we turn to technical analysis to identify important trading levels in Bitcoin (BTC), Ethereum (ETH) and Ripple’s XRP (XRP).
Bitcoin’s price continues to oscillate within a wedge pattern, a chart formation that typically breaks to the downside. Moreover, the largest cryptocurrency by market capitalization trades below the 50 moving average, indicating bearish sentiment. A further rejection at this closely watched indicator may lead a decline to the pattern’s lower trendline where support sits at $27,070. Alternatively, a close above the 50 SMA could see retest of the wedge’s upper trendline at the $28,400 level.

Ethereum’s price has staged a breakdown below the lower trendline of a broad ascending triangle. The moved occurred on average volume, making it difficult to predict future price direction. A further rejection at the triangle’s lower trendline could see bears make another attempt at longer-term support around the psychological $1,500 level. Conversely, a close back above the pattern’s lower trendline could indicate a bear trap and see bulls make a run toward overhead resistance at $1,740.

Like Ethereum, XRP’s price has broken down below the lower trendline of an ascending triangle on average volume. It also trades under both the 50 and 200 moving averages, confirming a bearish bias. A continuation of selling at these levels opens the door for falls to crucial support at 0.46. However, a close back above the 200 SMA could give bulls the confidence to revisit key overhead resistance around $0.54.


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