Bitcoin, Ethereum, XRP Forecast: BTC Faces Competition From Yielding Assets

Key Insights:

• Leading cryptocurrencies face competition from yielding assets.
• Bitcoin trades within wedge pattern, support at $25,000; resistance at $27,300.
• Ethereum trades within wedge pattern, support at $1,500; resistance at $1,630.
• XRP oscillates within wedge pattern, support at $0.46; resistance at $0.525.

Bitcoin, Ethereum and XRP Forecast Video for 26.09.23 by Tim Smith

Technical Analysis: Bitcoin, Ethereum and XRP

Leading cryptocurrencies remain subdued in Tuesday’s Asian session amid mounting pressure from yielding securities. Risk assets, such as stocks and cryptocurrencies, continue to compete for investment dollars against attractive bond yields in safe haven assets like government treasuries. Indeed, the equity risk premium — the difference between the S&P 500’s earnings yield and U.S. 10-year treasury note — has slumped to -0.58, its lowest level in more than a decade. The metric has averaged 3.5 points since the global financial crisis.

Comparatively higher returns in safer assets over the third quarter combined with ongoing regulatory hurdles continue to present a challenging investment environment for digital assets. Below, we use technical analysis to identify important chart levels to watch on Bitcoin (BTC), Ethereum (ETH) and Ripple’s XRP (XRP).

Bitcoin

Bitcoin’s price trades toward the lower trendline of a wedge pattern. Volumes remain extremely thin, raising the prospect for sudden volatility spikes in either direction. Furthermore, the RSI sits in neutral territory providing little clue on future price direction. Additional upside from these levels could lead to a test of the wedge’s upper trendline at around $27,300, Conversely, a breakdown below the pattern could trigger a decline to the key psychological $25,000 area.

Ethereum

Like Bitcoin, Ethereum’s price also trades within a broad wedge pattern. Volumes remain low here also, increasing the risk of liquidation events. A move higher could see a test of resistance at the $1,630 level, where the price finds a confluence of resistance from the wedge’s upper trendline and falling 200 SMA. Alternatively, a failure to hold the pattern’s lower trendline could see bears make another attempt at longer-term support at $1,500.

XRP

XRP‘s price also remains entrenched within a wedge pattern that has played out over the past month. More recently, the fifth largest crypto by market capitalization has oscillated sideways since generating a weak “golden cross” buy signal last week. A move above the closely aligned 50- and 200-SMAs could give rise to a rally into overhead resistance at the $0.5250 are. However, a failure to hold above the wedge pattern’s lower trendline could initiate falls to the crucial $0.46 support level.