Crypto Traders Expect Another Rally Soon

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Bitcoin price is showing strength as it holds the $40,000 support zone. Ethereum price is developing an entry that could yield a 27% gain. XRP price is about to retrace to the critical $1 value zone.

Bitcoin price action has spent the week developing a particularly nasty bear trap from a head and shoulders pattern. Ethereum price has pulled back from the recent rally, but has found support and is showing signs of buyers returning to continue the push higher. XRP price has developed an almost identical reversal pattern to Ethereum as Ripple targets a 20% gain.

Bitcoin price presents a buying opportunity before BTC hits $61,000

Bitcoin price action continues to provide an excellent long opportunity heading into the weekend. The theoretical long entry is a buy stop order at $44,000, a stop loss at $40,000 and a profit target at $61,000. The trade represents a reward/risk of 4.25:1 with an implied profit target of over 40% from entry. A two-box trailing stop would help protect any profit made after entry.

BTC/USD $1,000/3-box Reversal Point and Figure Chart

The theoretical long idea is invalidated if Bitcoin price has a daily or weekly close below the $39,500 value zone.

Ethereum price targets return to $4,000, eliminating short sellers

Ethereum price, like Bitcoin and many other altcoins, has developed several bear traps. However, the most recent bear trap generated a buying opportunity from a point and pattern pattern known as the pole pattern. Pole patterns are a more flexible pattern in Point and Figure charts, offering initial entries with reverse reversal setups simultaneously. One such opportunity now exists for Ethereum.

A theoretical long setup for Ethereum price is a buy stop order at $3,400, a stop loss at $3,200, and a profit target at $4,300. This trade represents a 4.5:1 reward/risk setup with an implied profit target of over 27% from entry. A trailing stop of two to three boxes would protect any profit made after the triggered entry.

ETH/USD $50/3-box Reversal Point and Pattern Chart

The theoretical long entry is invalidated if the current O column reaches $2,950.

XRP price pulls back and prepares to convert into a bull market

XRP price action has the nicest upside break against Bitcoin or Ethereum. This bullish bias is because the entry of the Pole Pattern breaks the current bear market angle and converts XRP into a bull market.

The possible long entry is a buy stop order at $0.80, a stop loss at $0.76 and a profit target at $0.98. Since this entry is based on a pole pattern reversal, XRP may go down. If XRP goes down, then the entry and 4-box stop follow in tandem – but the profit target remains at $0.98.

Like Bitcoin and Ethereum, XRP’s possible long trade setup is 4.5:1 reward/risk but with an implied gain of 23%. As a result, $0.98 may be too conservative, especially given how long XRP has spent wallowing in flat-to-negative price action against Bitcoin and Ethereum.

XRP/USD $0.01/3-box Reversal Point and Figure Chart

This long entry idea is invalidated if the XRP price falls to $0.70.

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