Traders seem to be in a state of uneasiness as the price of bitcoin consolidates between $62,000 and $64,700, two important milestones.
If the price of Ethereum can break and close above its resistance level, it will likely move in a positive direction soon.
Traders seem to be hesitating as the ripple price consolidates around the $0.560 and $0.613 levels.
Traders seem to be hesitating as Bitcoin (BTC) and Ripple (XRP) consolidate between their important levels. Meanwhile, after breaking above its resistance level, Ethereum (ETH) is showing indications of a rise.
The price of bitcoin is consolidating within the range of $62,000 and $64,700.
For more than six days, the $62,000 and $64,700 levels have served as major support and resistance for the Bitcoin price. It is worth $64,360 as of Wednesday.
Bitcoin might first revisit its daily resistance mark at $65,379 if its price breaks above current consolidating zone around $64,700. With a daily close above this level, the rally has a 7% chance of extending to $70,079, its high from July 29.
On the daily chart, the Relative Strength Index (RSI) is pointing higher at 65 and is trading above its neutral level of 50. As a rule, bullish momentum is picking up steam as values cross above 60. Nevertheless, investors want to exercise caution as it nears the 70-point overbought mark.
But if Bitcoin falls below the consolidation zone around $62,000 and stays there, it can fall another 7% and retest the $57,610 low it reached on September 17.
After breaking above its downward trendline (formed by connecting successive high levels from July 22), the price of Ethereum increased by 3.9% the next day, closing above its daily resistance level of $2,461. This development suggests that the price may be heading for an upswing. As of Wednesday, it is selling at about $2,643, continuing a 3.5 percent increase over the next four days.
Ethereum has the potential to retest its August 24 high of $2,820, which it reached on August 6, if the daily level of about $2,461 remains as support.
As the bullish momentum has weakened, the relative strength index (RSI) on the daily chart has been trending downward, very close to the 60 mark. A relative strength index (RSI) reading over 60 usually indicates that bulls are gaining ground, which is necessary for the rally to continue.
However, Ethereum might continue its drop and retest its $2,152 low from September 6 if it closes below the $2,461 daily support level.
The price of ripple is getting closer to two important thresholds.
For almost eleven days, the $0.560 and $0.613 crucial levels have served as a trading range for Ripple, with the price remaining above its ascending trendline (created by linking many low levels from July 5). Its trading price is around $0.592 as of Wednesday.
After retesting its daily resistance level at $0.626 if Ripple breaks above this consolidating range at $0.613, it may then continue to increase. Retesting the high of $0.658 from July 31st would need a daily close above this level, which, if achieved, may prolong the rally by 5%.
On a daily basis, the relative strength index (RSI) is trading at 57, far above its neutral level of 50. A prolonged rally requires the relative strength index (RSI) to go over 60, which would suggest that bulls are building momentum for the advance.
But the market structure will turn negative if Ripple's price breaks below the ascending trendline and closes below the $0.544 daily support level, as well as the consolidation zone around $0.560. If it happened, XRP would fall 7.5% and hit its low of $0.502 again, which it hit on September 6.