Corrections in bull markets can be seen as temporary setbacks

• Bitcoin is likely to revise the 200 SMA support before a significant reversal comes into play.
• Ethereum’s downside points to $ 480 especially if the support at 100 SMA and $ 500 plummets.
• Ripple struggles for support above $ 0.5 and the 50 SMA after rejection at the critical $ 0.6 resistance level.

The cryptocurrency market is still painted red almost a day after the selloff was triggered by investors taking profits. Withdrawal services for cryptocurrencies and digital assets on the OKEx exchange resumed Thursday. The massive dips, particularly for Bitcoin, have been attributed to investors removing funds from the platform.

Bitcoin is struggling to support the price above $ 17,000, while Ethereum looks poised for losses of less than $ 500. On the other hand, Ripple has managed to recover over $ 0.5 and is trading at $ 0.52 at the time of writing. Significantly few coins are trading green on Friday and include select altcoins such as Aave (AAVE), Yearn.Finance (YFI) and Kusama (KSM).

Bitcoin resumes the breakdown at $ 15,750

Bitcoin recovered from the drop to $ 16,200 and recovered ground above $ 17,000. However, the bullish momentum was not strong enough to overcome seller congestion at 100 SMA. A rejection entered the scene, forcing the flagship cryptocurrency to return to the $ 16,000 territory.

At the time of writing, BTC / USD is trading at $ 16,728 at a bearish time that has intensified. If Bitcoin doesn’t close the day above $ 17,000 and perhaps the simple moving average of 100, more losses are likely to occur. The bearish leg could stretch to the 200 SMA at $ 15,750 before a reversal occurs.

BTC / USD 4-hour chart

Conversely, the bearish outlook will be abandoned if the bellwether cryptocurrency settles above the 100 SMA. Here, the bulls will have a chance to focus on rising the price above $ 18,000 and likely the 50 SMA at $ 18,300.

Ethereum is on the verge of a plunge below $ 500

Ethereum is like an unstable atom as it holds over $ 500. The recovery from the drop to $ 480 was unable to break above $ 520. Ether suffered another rejection at the resistance level, forcing buyers to seek refuge at the 100 SMA, marginally above $ 500.

The smart contract giant must hold over $ 500 if not 100 SMAs to avoid triggering huge losses. Support is still expected at $ 480, but if the supply increases for Ethereum, a significant bearish trend could occur.

ETH / USD 4-hour chart

On the flip side, the bulls will avoid the potential breakdown if Ethereum holds above $ 500 and the 100 SMA. This will allow them to shift their focus from playing defense to overcoming the critical hurdle at $ 520.

Ripple’s decline seems unstoppable

The cross-border token renewed the uptrend, but only slightly after the recent steep drop to $ 0.45. The defense of the 50 SMA support on the 4-hour chart played a vital role in controlling the failure. The ensuing recovery stalled below $ 0.6, leading to the ongoing battle to stay above $ 0.5.

XRP will likely continue with the downtrend, especially if the support levels at the 50 SMA and $ 0.5 yield to selling pressure. For now, the minor resistance path is downward, as reinforced by the relative strength index slide below the midline.

Trading below the 50 SMA may require multiple sell orders. An increase in XRP supply could see the cross-border token embark on a massive earnings-cutting exercise. Other key support levels to keep in mind include $ 0.45, 100 SMA at $ 0.38, and 200 SMA at $ 0.31.

XRP / USD 4-hour chart

On the upside, defending the support at $ 0.5 or the 50 SMA could invalidate the bearish narrative. If Ripple takes on stability, the bulls will have plenty of time to focus on increasing demand, which could help lift the token above the expected resistance at $ 0.6 and $ 0.7.