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Crypto Markets Scramble to Recover Ahead of Next Crash

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Crypto Markets Scramble to Recover Ahead of Next Crash
  • Bitcoin price is in a potential rally that could push it up to $22,600.
  • Ethereum’s price recovery could only push it up $1,650 due to multiple hurdles.
  • Ripple price is slow in terms of recovery as it struggles with the $0.340 support floor.

bitcoin price saw a massive sale over the past four days and has been trying to consolidate and recover since then. Some altcoins have been much better at recovery than Ethereum and Ripple. Either way, a recovery rally seems plausible for crypto markets.

The Australian Government recognizes that over one million users have interacted with cryptocurrencies since 2018, as a result, it takes a different approach to regulating the crypto space. In this effort, the australian federal government is supposed to create a “token map” for crypto assets. This decision is intended to protect investors and protect them from themselves. Treasurer Jim Chalmers said:

As things stand, the crypto industry is largely unregulated and we need to do some work to strike the right balance so that we can embrace new and innovative technologies while protecting consumers.

While different countries take different approaches to regulate the crypto spaceBitcoin looks set for recovery ahead of its next leg down.

Bitcoin Price Eyes Recovery

bitcoin price crashed 12% between Aug. 18 and Aug. 20 and set a low at $20,750, which is the fourth equal low formed since July 18. Although the recovery has pushed BTC to $21,500the upside appears to be capped at $22,600.

A rejection at the aforementioned level followed by a sweep of the $20,750 seems plausible. Therefore, investors should be wary of a premature rally.

BTC/USD 4 hour chart

BTC/USD 4 hour chart

While things are looking over the fence for bitcoin price, a breakdown of the $20,750 support level and its swing into a resistance level will delay the recovery rally. In such a case, BTC could crash as low as $17,578 to raise cashlying below oscillating lows formed between June 18 and July 13.

Ethereum price outlook remains so so

Ether price too crashed about 19% following Bitcoin’s signal between August 18 and 20. However, the recovery appears to be much shorter as ETH is already retracing. Investors can expect a slight rise to $1,675 to fill the inefficiency and trigger its reversal here.

However, in some strange instances, this move could extend to $1,730 and form a local high there before reversing and continuing its downtrend. No matter where the local top is formed, Ether price is due to a retest of the imbalance on the downside at $1,474.

ETH/USD 4 hour chart

ETH/USD 4 hour chart

Although the recovery targets seem ambiguous, a reversal from the $1,730 hurdle will signal the resurgence of buyers. However, a higher high above the recent swing point at $2,019 will invalidate the bearish thesis for Ether price.

Ripple price ready for some bounce

Ripple Price is hovering around the $0.340 hurdle with no directional bias in mind. The recovery rally for Bitcoin is the only thing that can drive XRP price up.

In such a case, investors can expect that installment token to make a run for the resistance level of $0.360. The recovery rally is likely to form a local summit here, before reversing and possibly swapping the liquidity resting below the equal lows formed at $0.326.

XRP/USD 4 hour chart

XRP/USD 4 hour chart

On the other hand, if Ripple price turns the $0.381 hurdle into a support floor, it will invalidate the bearish thesis by conquering a long-standing resistance level. In such a case, investors can expect XRP price to break through the $0.439 barrier.

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