Bitcoin’s (BTC) price page promotion has recently been a hunting ground where Whales can easily liquidate misinformed traders on exchange platforms. Without any changes, any asset can get boring.
But let’s not forget that BTC is not the only existing cryptocurrency since there are currently several altcoins in some form of return. However, there is one currency that doesn’t seem to be having a good time lately: XRP, the fourth largest crypto asset by market cap.
So in today’s analysis, I’ll see if holding XRP is likely to be more fruitful in the short term than BTC.
Daily performance of the cryptocurrency market. Source: Coin360.com
The big picture of Bitcoin
Starting with the weekly chart, you can see why the bears prefer this period. Bitcoin forms a giant pennant that is now much clearer than it was before the Black Swan event on March 12th.
1 week BTC / USD pair chart. Source: TradingView
Usually the flags open towards the end of the outline, sometimes a little earlier. However, they will expire later. How things stand for Bitcoin, A break can occur at any time within 14 months between now and around September 2021.
At a current price of around $ 9,156, a small 6% increase would put Bitcoin on the resistance line, so we couldn’t get the $ 10,000 back. At this rate, however, it would be a welcome advance for the bulls to only recover $ 9,750.
On the other hand, Between the current price and the system support is an enormous difference of 47.42%. This is a potential goal of $ 4,500, which can be a great opportunity to collect some sats. But are it just overly aggressive bearish wishes that shout: “Burn this ponzi to the ground”?
More bearish news for Bitcoin
1-day BTC / USD pair chart. Source: TradingView
The 1-day chart can be interpreted as bearish for Bitcoin. With the Fibonacci Retraction Tool from March 12th until the last rejection of $ 10,500, the price is still over $ 0.236. However, if this level fails, Fibs .382, 50%, and .618 are where the action is performed, and this sets the support levels to $ 7,900, $ 7,150, and $ 6,350, respectively.
While none of us want to see $ 6,350 or $ 4,500 Bitcoin hodlers, the charts can’t be ignored. However, the upward trend in me sees that the price of Bitcoin only needs to rise 13% to reach multi-year resistance of $ 10,500.
So which is more likely? Let the number go up? Or that the number is falling?
Short-term resistance for Bitcoin
1 hour BTC / USD pair table. Source: TradingView
Short-term for Bitcoin and using the 1 hour chart as well as the Bar Tip Fib values from June 23rd and the low of $ 8,800 on June 27th we can see that Bitcoin broke the 382 (as I write this article) . According to the Fibonacci structure, the most likely resistance levels would be $ 9,300 at 50% Fib and $ 9,420 at $ 618.
If Bitcoin continues an upward trend, reaching the top of the Fibonacci at $ 9,794 would invalidate the pennant structure and also preclude the possibility of $ 4,500 initially.
Once the bulls are in control, Bitcoin’s $ 12,000 is the next key step to beat. When all is said and done, this is still only a 25% price increase. That brings me to Ripple’s XRP, an altcoin that has piqued my interest.
XRP is the new XRP
1-week XRP / USD pair chart. Source: TradingView
At first glance, the XRP diagram looks like any other old coin. A huge highlight of 2017, followed by a monstrous downward trend. Anyone looking at this graphic would draw the same conclusion that this project is dead.
But is the fourth largest by market capitalization cryptocurrency really dead? Or is it now an opportunity to invest in it?
When using the Fib with a large pinch of salt, the first target is $ 382 at $ 1.33. With a current XRP of around $ 0.175, this corresponds to a return on investment of around 750%. If the price continues with a 50% retracement, it will be 900% and a massive profit of 10 if it reaches the 0.618 level.
I like these numbers, and since XRP is something like the “Ralph Wiggum” of cryptocurrencies, which is reacting fairly slowly after Bitcoin and Ethereum have made their moves, and stagnating for most of 2017, this could be a huge speculative investment as Bitcoin appears to be near its peak.
The disadvantage of XRP
1 week XRP / USD chart: TradingView
We hit the 1-day chart for XRP and the downtrend doesn’t look too good. If the $ 0.16 support fails, XRP could reach $ 0.10 as the Fib Retraction Tool turns out to be a potential target.
However, There is massive pressure to buy and sell XRP on BitfinexBetween $ 0.17 and $ 0.18 with no major orders under $ 0.17, according to the Tensorcharts Heat map.
XRP / USD pair heat map. Source: Tensorcharts
All of this leaves me with the question: Is it the end of XRP? But are we also near the top for Bitcoin?
Obviously, XRP has not won as many hearts and minds as BTC as it is generally rejected by the crypto community due to its centrality, Ripple’s regular monthly sales from its deposit account, and supporters of the “XRP Army”.
However, XRP is currently at mid-2017 levels, while Bitcoin is already available at December 2017 prices. Which horse looks best on these levels? Of course, you should do your own research. But as Warren Buffet once said, “Be afraid when others are greedy and greedy when others are afraid.”
For Bitcoin, the first level of resistance is $ 9,450. However, if we can break this So in $ 9,750, the bulls have to regain control.
The defense of the $ 8,900 that is the 236 fib is huge for Bitcoin right now. If this level failed, you would consider $ 7,900 a very real target if the bears won this fight.
The views and opinions expressed here are solely those of @officiallykeith and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement involves risks. You have to do your own research when making a decision.