- Bitcoin price retests the 50% retracement level at $62,736, a close below it would indicate a bearish move.
- Ethereum's price retests the daily support level of around $3,076, a break below would change the market structure from bullish to bearish.
- Ripple price continues to retrace but may find support at the $0.544 level before potentially resuming an upward rally.
Bitcoin (BTC) and Ethereum (ETH) have retested their key support levels, with a break below these levels potentially signaling a bearish trend ahead. At the same time, Ripple (XRP) shows resilience and could rally in the coming days after testing its key support level.
Bitcoin price at risk of decline after breaking below key support level
Bitcoin's price retested the ascending trendline support on Thursday, coinciding with the 50% Fibonacci retracement level at $62,736 (drawn from a swing high of $71,997 on June 7 to a swing low of $53,475 on July 5), establishing it as a critical support zone.
As of Friday, Bitcoin is trading slightly lower at $64,142, down 1.7%.
If Bitcoin continues to decline and closes below the ascending trendline and the 50% Fibonacci retracement level, it could drop 10% to revisit the daily low of $56,405 from July 12.
The Relative Strength Index (RSI) on the daily chart has briefly fallen below the neutral 50 level, and the Awesome Oscillator (AO) is approaching a similar decline; sustained weakening in these momentum indicators could signal strong bearish pressure and further declines in Bitcoin's price.
BTC/USDT daily chart
However, a close above the $69,648 weekly resistance level would change the market structure by forming a higher high on the daily timeframe. Such a scenario might drive a 3% rise in Bitcoin's price to retest its June 7 high of $71,997.
Ethereum price faces potential decline after dropping below $3,076 support level
Ethereum price retested the daily support level of around $3,076 on Thursday, which aligns with the former trendline resistance now acting as support. As of Friday, ETH is trading slightly lower by 1.67% at $3,147.
If Ethereum's price continues to decline and closes below the daily support at $3,076 and the trendline, it could drop 9% to revisit the daily low of $2,808 from July 5.
The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart have fallen below their neutral levels of 50 and zero, respectively, signaling strong bearish dominance.
If this negative sentiment persists and the broader cryptocurrency market outlook remains weak, Ethereum could drop another 7% to test the support level at $2,621.
ETH/USDT daily chart
On the other hand, if Ethereum's daily candlestick closes above $3,396, forming a higher high in the daily timeframe, it may signal persistent bullish sentiment. This scenario could trigger a 4% rise in Ethereum price, targeting a revisit of its 61.8% Fibonacci retracement level at $3,531 from the May 27 high of $3,977 to the July 5 low of $2,808
Ripple price eyes rally after retesting $0.544 daily support level
Ripple price failed to close above the $0.643 mark on Wednesday and fell 4.2% on Thursday. As of Friday, it is down an additional 2%, trading at $0.583.
If XRP continues to retrace, it may find support at the daily support level of $0.544. This level aligns with the 50% Fibonacci retracement level at $0.521, calculated from the swing low of $0.382 on July 5 to the swing high of $0.660 on July 31.
If the $0.544 level holds, XRP could rally 18.5% to retest the July 31 daily high of $0.660.
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are currently above their neutral levels of 50 and zero, respectively. These momentum indicators strongly indicate bullish dominance.
XRP/USDT daily chart
However, if Ripple's daily candlestick closes below the $0.521 level, it indicates sustained bearish sentiment, forming a lower low in the daily timeframe. Such a scenario could lead to an 18% crash in Ripple price, targeting a revisit of its weekly support at $0.413.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Coinbase Q2 earnings beat expectations as crypto market posts signs of potential recovery
Coinbase beat market expectations, with Q2 revenue hitting $1.45 billion. ETF cannibalization could affect Coinbase future earnings. COIN, BTC and ETH showed slight increase as the report was largely positive.
Ethereum declines amid ETH ETF outflows and potential whale dump
Ethereum ETFs recorded $77.3 million in net outflows on Wednesday. Wallet related to Elwood Technologies has moved 19,500 ETH to Binance within the past two days. Ethereum could bounce off key support level to set new yearly high.
Bitcoin, crypto may rebound in August: Insights from Santiment's July roundup
The crypto market closed July with a sharp rise in Bitcoin's weighted sentiment, indicating increased bullish sentiment toward the top cryptocurrency, especially as it approached the 70K key psychological level.
Ripple makes a strategic move, while SEC cancels closed-doors meeting, XRP bleeds
Ripple announced the arrival of tokenized US Treasury bills on the XRP Ledger in an official tweet on X. XRP trader sentiment turns to fear on the Fear and Greed Index on CFGI.io. XRP erases recent gains, suffers nearly 7% decline on Thursday.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.