As it encounters resistance around its level of support, the price of bitcoin keeps falling.
As Ethereum price meets resistance at the $2,843 mark, a decline seems imminent.
The price of ripple remains steady at the $0.544 daily support level, suggesting a possible rebound is imminent.
As the prices of Bitcoin (BTC) and Ethereum (ETH) retested their important resistance levels, they showed signs of weakening. When compared to this, Ripple's (XRP) steadiness as it nears its critical support region suggests a possible rebound.
Bitcoin price keeps falling after hitting a resistance level
On Tuesday, the price of bitcoin retested the $62,066 level, which is derived from the range of $70,079 on July 29 to the low of $49,101 on August 5, the 61.8% Fibonacci retracement. Over the next two days, BTC was denied and rejected at a rate of 5%. It is now trading at $58,231—a 1% increase from Friday.
From its present trading level of $58,231 to retest its daily support of $49,917, Bitcoin can fall 14% if the $62,066 level remains a barrier.
The Awesome Oscillator (AO) and the Relative Strength Index (RSI) are both trading below their neutral levels of zero and fifty, respectively, on the daily chart, indicating that a bearish trend is imminent.
On the other hand, a 6% price gain and a test of the weekly barrier at $69,648 are also possible outcomes if Bitcoin's price can close above the August 2 high of $65,596.
After retesting a critical resistance level, Ethereum is almost ready to be rejected.
On Wednesday, the price of Ethereum retested at the $2,843 mark, which is the 50% retracement level between its July 22 swing high of $3,562 and its August 5 swing low of $2,124. The following day, 3.5% of ETH's value dropped due to rejection. It is trading at $2,589, up 0.74 percent, as of Friday.
Ethereum (ETH) may fall another 18% from its present level, drop below $2,589, and then retest its weekly support level of $2,118 if the $2,843 level remains a barrier to further declines.
The relative strength index (RSI) is trading below its neutral level of 50 on the daily chart, while the average true range (AO) is below zero, indicating that a negative trend is imminent.
However, Ethereum might see a 5% climb to $3,562 (its previous high) if its price closes over $3,396 (its previous high on the daily chart), which would be a greater high than the one on July 29.
After finding support at the daily level, the ripple price shows signs of possible recovery.
Thursday saw a retest of the $0.544 daily support level for the ripple price, which it successfully navigated. This past Friday, it traded for $0.566, a 1.2% increase.
With a 10% increase, XRP may go up to $0.643—the next level of resistance—if the daily support at $0.544 remains.
Both the relative strength index (RSI) and the average true range (AO) on the daily chart have momentarily fallen below their neutral thresholds. Both momentum indicators need to stay above their respective means if bulls are really making a return. The recovery rally would get a boost from such a scenario.
The converse is also true: a 9.5% drop to $0.492 (the low from August 7) may occur if Ripple's price drops below the $0.544 daily support level, which would change the market structure by making a lower low on the daily chart.