- Bitcoin tested $58,375 support on Monday and currently trades at $61,996 on Wednesday.
- Ethereum retested the $3,288 support level on Monday and is now near $3,407 on Wednesday.
- Ripple price faces stiff resistance at $0.500.
Bitcoin tested crucial support on Monday, rebounding by 5.8%. Ethereum followed a similar pattern, retesting support on Monday and gaining 4.8% by Wednesday. Ripple trades below its daily resistance level of $0.50 but has shown resilience despite Bitcoin's decline.
Bitcoin price looks promising
Bitcoin's price broke below the descending wedge on Monday, declining approximately 7.5% from its daily high of $63,369 to a low of $58,402. After retesting its crucial weekly support near $58,375, BTC rebounded by 5.8% from Monday's low of $58,402, closing at $61,806 on Tuesday. BTC trades at around $61,996 at the time of writing, edging up approximately 0.6% on Wednesday.
If the weekly support at $58,375 holds, Bitcoin could encounter resistance at several key levels.
- The lower boundary of the descending wedge sits around $62,000.
- The descending wedge's daily resistance and upper boundary hovers near $63,956.
- The 61.8% Fibonacci retracement level and the weekly resistance are at $66,631 and $67,147, respectively.
A breakthrough above these resistance barriers could propel BTC's price towards retesting the next weekly resistance at $71,280.
The Relative Strength Index (RSI) is currently below 50 on the daily chart, while the Awesome Oscillator (AO) is below its zero level. For bulls to stage a convincing comeback, both momentum indicators must sustain positions above their respective thresholds of 50 for RSI and zero for AO.
BTC/USDT daily chart
However, if BTC closes below the $58,375 level and forms a lower low on the daily time frame, it could indicate that bearish sentiment persists. Such a development may trigger a 3% decline in Bitcoin’s price, revisiting its previous low of $56,552 on May 1.
Ethereum price shows resilience
Ethereum price retested its support level of $3,288, the 61.8% Fibonacci retracement level drawn from a swing low of $2,862 on May 14 to a swing high point of $3,977 on May 27 on Monday. ETH rebounded by 4.8% from Monday's low of $3,240, closing at $3,394 on Tuesday.
ETH trades at around $3,407 at the time of writing, edging up approximately 0.7% on Wednesday.
If this support at $3,288 holds, ETH price could rally 9% from its current trading level of $3,407 to tag its previous high of $3,717 on June 9.
The Relative Strength Index (RSI) and the Awesome Oscillator in the daily chart are both below the mean level of 50 and zero, respectively. If bulls are indeed making a comeback, then both momentum indicators must maintain their positions above their respective levels.
If ETH closes above $3,717, the high of June 9, it could extend an additional rally of 7% to reach its previous resistance level of $3,977.
ETH/USDT daily chart
On the other hand, if Ethereum's daily candlestick price closes below the $3,288 level, it would produce a lower low and signal a break in the market structure. This move would invalidate the aforementioned bullish thesis, potentially triggering an extra 13% crash to the previous support level of $2,862.
Ripple price shows potential for upside
Ripple's price currently trades at $0.476, below the daily resistance level of $0.499. Despite Monday's fall in Bitcoin’s price, XRP has shown resilience in its price action.
If Ripple's price surpasses the barrier at $0.499, it could rise 7% from $0.499 to $0.532, its previous high from June 5.
In the daily chart, the Relative Strength Index (RSI) is below the 50 mark, indicating neutral to bearish sentiment, while the Awesome Oscillator (AO) remains below zero, suggesting bearish momentum. Both indicators must rise above their critical thresholds of 50 for RSI and zero for AO for a sustained bullish trend. Such a development would bolster the ongoing recovery rally in the market.
If the XRP daily candlestick closes above $0.532, it could extend an additional 9% rally to $0.581, a 50% price retracement level of $0.419 and $0.744 from March 11 to April 13.
XRP/USDT daily chart
Conversely, if Ripple's daily candlestick closes below $0.450, marking the June 7 low, establishing a lower low on the daily chart would invalidate the bullish outlook. This scenario might lead to a 7% decline in XRP's price towards the April 13 low of $0.419.
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