- Bitcoin price consolidation appears drenched and at risk of breaking below the $28,930 support as overhead pressure builds.
- Ethereum price could fall 5% to $1,791 amid increasing volatility and growing BTC influence.
- Ripple price could pivot around $0.684 before the next move north as uncollected liquidity beckons.
Bitcoin (BTC) price ended its rangebound movement as it slipped nearly 3% between late July 31 and early August 1. The sweep of key lows could trigger a rally in later in the week, but investors need not hold their breath. The aura of this dormancy that penetrated altcoins, including Ethereum (ETH) and Ripple (XRP), could likely end if BTC makes a strong recovery rally to $30,000.
Also Read: Bitcoin teases $29.5K, Ether drops as 'accumulator season' begins
Bitcoin price shows saturation as momentum falls
Bitcoin (BTC) price is edging west, with neither bulls nor bears showing the upper hand. The king of crypto is showing signs of diminishing volatility that puts it at a standstill tethered to the 100-day Exponential Moving Average (EMA) at $29,349.
Nevertheless, trending markets can only hold out for so long, and the next move could present soon. With the Relative Strength Index (RSI) lower than 50 and tipping south, and the histograms of the Awesome Oscillators (AO) in the negative, Bitcoin price is more likely to head lower as momentum continues to fall.
Possible inflection points for Bitcoin price are the $28,930 level or in the dire case the 200-day EMA at $28,464 on the 12-hour chart below. Failure to turnaround at these buyer congestion levels could expose BTC to a cliff, potentially toward the $27,000 range.
BTC/USDT 12-hour chart
Conversely, bulls coming in at the aforementioned levels could revitalize Bitcoin price, fueling a breach from the 100-day EMA foothold at $29,349. An increase in buyer momentum beyond the 50-day EMA at $29,646 would be ideal, as a flip of this supplier congestion level into support would clear the path for a possible move to $31,462.
A decisive move past this level would solidify an uptrend for Bitcoin price.
Also Read: Bitcoin hovers below $30,000 as Coinbase CEO recalls SEC's request before the lawsuit
Ethereum price mimics BTC
Ethereum (ETH) price is moving in harmony as BTC, consolidating sideways as domination under the 50-day EMA at the $1,870 level continues. As the Bitcoin influence weighs down on ETH, the largest altcoin by market capitalization could be due for a fall as volatility grows.
With the RSI momentum indicator below the 50 level, Ethereum price could lose the immediate support offered by the 100-day EMA at $1,842. A fall through this support level could see ETH revisit the June 21 lows marked by the support confluence between the horizontal line and the 200-day EMA at $1,782. Such a move would constitute a 5% drop from current levels.
ETH/USDT 1-Day chart
Conversely, if bullish momentum builds above the 100-day EMA, Ethereum price could ascend to flip the 50-day EMA back to support. An increase in buyer momentum could push ETH above the $1,953 resistance level, but for a confirmed uptrend, ETH must decisively breach the $2,019 hurdle.
Also Read: Ethereum logs $1M MEV block reward amid Curve Finance exploit
Ripple price to drop before the next climb
Ripple (XRP) price eyes a 3% drop to collect buy side liquidity that remains uncollected under the $0.684 support level. Such a move could then see XRP turnaround to the north, with the developed price action providing a possible reentry point for willing investors.
However, an uptrend would only be confirmed upon a strong move above the $0.826 resistance level. Notably, both the RSI and AO still favor the bulls, and with the 50-, 100-, and 200-day EMAs at $0.615, $0.556 and $0.506 respectively heading north, the odds favor the bulls.
XRP/USDT 1-Day Chart
Not ignoring the consequences of early profit-taking, there is also a likelihood of Ripple price falling below the $0.684 support and giving back all the ground covered in the July 13 rally.
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