- Bitcoin price fails to rise for a second consecutive day and remains within its broad consolidation zone between $57,000 and $62,000.
- Ethereum price is at risk of a further decline if it fails to find support at around $2,500.
- Ripple price finds stability around the daily support level of $0.544, with potential recovery on the cards.
Bitcoin (BTC) and Ethereum (ETH) prices are expected to drop after struggling to break through critical resistance levels, and momentum indicators show bearish biases. In contrast, Ripple (XRP) is showing stability near its daily support level of $0.544, suggesting a possible rebound.
Bitcoin price holds steady, bouncing between $57,000 and $62,000
Bitcoin price continues to consolidate between $57,115 and $62,066, the Fibonacci retracement levels of 38.2% and 61.8%, respectively, drawn from the high on July 29 to the low on August 5. On Wednesday, it trades slightly higher by 0.6% to $59,428 at the time of writing.
Suppose BTC rises back to the 61.8% Fibonacci retracement at $62,066. In that case, it may find some resistance at this level, as it aligns with the previously breached trendline and the 100-day Exponential Moving Average of around $62,217, making it a key resistance zone.
If it does not surpass $62,066, it could drop to $57,115 before potentially declining by 19% to revisit the $49,917 daily support level.
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) still trade below their neutral levels of 50 and zero, respectively, suggesting an impending bearish trend.
BTC/USDT daily chart
However, if Bitcoin's price can close above $62,066, a rise towards the August 2 high of $65,596 would be on the cards as it would set a higher high on the daily chart. This could lead to a further 6% price increase to test the weekly resistance at $69,648.
Ethereum price at risk of decline if it closes below a key support level
Ethereum price consolidates between its 50% retracement level of $2,843 (based on the swing high of $3,562 from July 22 and the swing low of $2,124 from August 5) and August 12 low of $2,510. On Wednesday, it's trading slightly higher by 0.75% at $2,590.
If the $2,843 level holds as resistance, it may drop to $2,510 before potentially declining by 4.5% to test the psychological support at $2,400.
On the daily chart, the RSI and AO trade below their neutral levels of 50 and zero, respectively, suggesting a weak momentum and an impending bearish trend.
ETH/USDT daily chart
On the other hand, if Ethereum's price closes above $2,843, it could rise to the July 29 high of $3,396, establishing a higher high on the daily chart, potentially driving a 5% increase to revisit the July 22 high of $3,562.
Ripple price shows potential for a rally after finding support around the daily level
Ripple price found support around its daily support level of $0.544, which coincides with the 100-day EMA at $0.545 on Friday and rose 6.5% the following three days. As of Wednesday, it trades slightly higher by 0.5% at $0.597.
If the daily support at $0.544 holds, XRP could rally 7% from its current trading level at $0.597 to challenge the next resistance level at $0.643.
The daily chart's RSI and AO have flipped above their neutral levels of 50 and zero, respectively. These momentum indicators indicate bullish dominance.
XRP/USDT daily chart
Conversely, if Ripple's price closes below the $0.544 daily support level, it would shift the market structure by creating a lower low on the daily chart, potentially leading to a 9.5% decline to revisit the August 7 low of $0.492.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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