- Bitcoin price approaches crucial support level at $56,000; a close below could see its downtrend persist.
- Ethereum price nears $2,300, with a break signaling a bearish trend ahead.
- Ripple price hovers 200-day EMA at $0.549; a firm close below would suggest a decline ahead.
Bitcoin (BTC) and Ripple (XRP) prices are approaching their key support levels; closing below suggests a decline ahead. At the same time, Ethereum (ETH) also trails Bitcoin’s path as it nears the $2,300 level, with a break below this level indicating a bearish trend ahead.
Bitcoin price is set for downward trend after closing below the $56,000 level
Bitcoin was rejected after retesting its 50% price retracement level at $59,560 (drawn from a high in late July to a low in early August) and dropped 2.78% on Tuesday. On Wednesday, it continued its downtrend, declining by 1.5% to $56,640 and retesting the daily support level at $56,022.
If BTC closes below the $56,022 support level, it could decline further by 3.5% to retest the $54,000 psychological level.
The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart trade below their respective neutral levels of 50 and zero, respectively. Both indicators suggest weak momentum and a continuation of its downward trend.
BTC/USDT daily chart
In an upside scenario, Bitcoin’s price could break above the $59,560 resistance and close above $62,019, the 61.8% Fibonacci retracement level. In that case, the bearish thesis will be invalidated, and BTC could extend the positive move by 5.5% to revisit its daily resistance level at $65,379.
Ethereum is poised for a downturn after closing below the $2,300 level
Ethereum price was rejected around its previously broken ascending trendline (formed by connecting multiple low levels from August 7) around $2,619, dropping 4.4% on Tuesday. As of Wednesday, it continues to decline by 2.5% at $2,367 and retests its August 8 low of $2,327.
If ETH closes below the $2,327 level, it could decline by 8.5% to retest its weekly support at $2,118.
The daily chart’s RSI and AO are trading below the neutral levels of 50 and zero. These momentum indicators strongly indicate bearish dominance.
ETH/USDT daily chart
On the other hand, if ETH breaks above the $2,619 level and closes above the daily resistance at $2,927, forming a higher high on the daily chart, this would invalidate the bearish thesis, and it could rally 11% to retest its weekly resistance level at $3,236.
Ripple price is set for a down leg after closing below key support level
Ripple price is finding crucial support around the 200-day EMA at $0.549, coinciding with the daily support level at $0.544. Currently trading slightly lower by 1% at $0.551, if XRP breaks below these levels, it could drop by 10% to retest the August 7 low of $0.492.
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.
XRP/USDT daily chart
However, if the Ripple price closes above the $0.626 daily resistance level, it would shift the market structure by creating a higher high on the daily chart, potentially leading to a 5.3% rise to revisit the July 31 high of $0.658.
Cryptocurrency prices FAQs
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.