Bitcoin’s Key Support Level at $88.8K Under Scrutiny After Trendline Break; XRP Approaches Death Cross: Chart Analysis

Bitcoin (BTC) and XRP are both facing pivotal moments in their technical charts, with Bitcoin testing the crucial $88,800 support level after breaking below a key trendline and XRP approaching a bearish death cross pattern that could signal further declines.

Over the weekend, Bitcoin slipped below a rising trendline that had connected price lows from mid-April, sparking concerns of a possible trend reversal. The break below this trendline, which had previously been acting as a key support, suggests that the momentum gained in April may be faltering, opening the door to more downside potential. Adding to the bearish sentiment, Bitcoin has also moved below the Ichimoku cloud on its hourly chart, an indicator that often signals a shift in market sentiment to the downside.

The immediate focus for Bitcoin now shifts to the $88,800 level, which has served as a critical support zone in previous price actions. If this level fails to hold, further declines could bring Bitcoin closer to the next significant support area, which lies around $85,000.

On the other hand, if Bitcoin manages to reclaim ground above the Ichimoku cloud, it could reverse the current downtrend and potentially target $95,000 again in the near term.

XRP Faces Bearish Cross as Technical Indicators Flash Red

Meanwhile, XRP is showing signs of weakness as it approaches a potential death cross, a technical formation that occurs when the short-term moving average (50-day SMA) crosses below the long-term moving average (200-day SMA). This pattern is often seen as a bearish indicator, and XRP’s price is currently hovering near key support levels after its price has dropped below the 50-day SMA.

If the death cross is confirmed, XRP could face significant downward pressure, potentially testing the $1.00 level again, which has held as support in the past. However, it’s important to note that while the death cross is a widely recognized bearish signal, its predictive power is not always definitive, and some assets may reverse before fully confirming the pattern.

With both Bitcoin and XRP at critical technical junctures, traders are on high alert for any potential breakouts or trend reversals that could dictate the direction of these assets in the near future.