- Bitcoin price approaches the $56,022 support level; if the level holds, it could continue its recovery.
- Ethereum price faces resistance around the $2,421 level, and a close below the level could prolong its downtrend.
- Ripple price faces rejection around the 200-day EMA at $0.548, eyeing a decline ahead.
Bitcoin (BTC) price approaches a critical support level; if it holds, it might pave the way for further recovery. However, Ethereum (ETH) and Ripple (XRP) find rejection around their resistance level and could be poised for declines, diverging from BTC’s potential rebound.
Bitcoin price could continue its recovery if it finds support around $56,000 level
Bitcoin price retested and found support around the $54,000 level on Saturday, bouncing 6% over the next three days. It broke and closed above the $56,022 daily resistance level on Monday. At the time of writing on Wednesday, it trades slightly down by 1% at $57,038.
If the $56,022 continues to hold as support, BTC could rise 6% to retest its 50% price retracement level at $59,529 (drawn from a high in late July to a low in early August).
The Relative Strength Index (RSI) on the daily chart is hovering around its neutral level of 50, indicating indecisiveness among investors. The Awesome Oscillator (AO) still trades well below its neutral level of zero. Both indicators should trade above their respective neutral levels for any upcoming recovery rally to be sustained.
BTC/USDT daily chart
This bullish thesis will be invalidated if Bitcoin price closes below the $54,000 support level. In this scenario, BTC could decline by an additional 7% and retest the next daily support at $49,917.
Ethereum price is set for a decline as it nears its daily resistance level
Ethereum price faces rejection around the daily resistance at $2,421 after recovering 7.5% in the last four days. At the time of writing on Wednesday, it trades slightly lower by 1.6% at $2,349.
If ETH continues to face resistance from the $2,421 level, it could decline 5.5% from its current trading level to retest its September 7 low of $2,225.
The RSI and AO are trading below the neutral levels of 50 and zero on the daily chart. These momentum indicators signal a continuation of the bearish dominance and impending fall in prices on the horizon.
ETH/USDT daily chart
On the other hand, if ETH breaks and closes above the $2,421 level, this would invalidate the bearish thesis, and it could rally 5.8% to retest its 61.8% Fibonacci retracement level at $2,564.
Ripple price is at risk of downfall as it finds rejection around 200-day EMA
Ripple price finds rejection around the 200-day Exponential Moving Average (EMA), hovering around $0.548 and the daily support level at $0.544 on Tuesday. As of Wednesday, it trades slightly down by 1.37% at $0.533.
If the 200-day EMA at $0.548 continues to hold as resistance, it could decline 6% to retest its September 6 low of $0.502.
The daily chart’s RSI and AO are trading below the neutral levels of 50 and zero. These momentum indicators strongly indicate bearish dominance.
XRP/USDT daily chart
However, if the Ripple price breaks above the $0.544 daily resistance level and closes above the 200-day EMA at $0.548. This would invalidate the bearish thesis, and it could rise 4% to revisit the September 3 high of $0.572.
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
Chainlink holds near three-year high fueled by EU tokenized securities partnership
Chainlink (LINK) price trades slightly down around $25.50 on Tuesday following a 33% rally that was spurred by its partnership with Frankfurt-based fintech 21X for Europe’s first tokenized securities trading and settlement system.
Trending altcoins: Hedera, VeChain and Algorand extend rally by posting double-digit gains
Three trending altcoins – Hedera (HBAR), VeChain (VET), and Algorand (ALGO) – post double-digit gains on Tuesday after surging last week, benefiting from the recent consolidation of Bitcoin prices.
Ondo Finance Price Forecast: ONDO reaches a new all-time high of $1.79
Ondo Finance surges more than 11% on Tuesday and reaches a new all-time high of $1.79. ONDO’s daily trading volume reached a new yearly high of $994 million, suggesting a surge in traders’ interest and liquidity.
XRP en route to new all-time high; key metrics to watch out for
Ripple whales have accumulated over $1.8 billion worth of XRP tokens amid a 200% rise in weekly active addresses. WisdomTree filed an S-1 registration with the SEC for an XRP ETF. XRP investors across several cohorts realized over $2.7 billion in profits in past three days following heavy Ripple token unlock.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.