- Bitcoin, Ethereum, and Ripple are all experiencing bearish trends, with Bitcoin breaking below $58,783 support, Ethereum facing resistance at $2,619, and Ripple closing below its 200-day EMA at $0.552.
- These developments suggest potential declines if key resistance levels aren’t surpassed, though bullish reversals could occur if prices break through critical thresholds.
Bitcoin (BTC) has recently closed below the critical $58,783 support level, signaling a potential continuation of its downward trend. After reaching a low of $57,201, Bitcoin showed a slight recovery, trading at $57,674 on Monday, up by 0.56%. However, the outlook remains bearish as the Relative Strength Index (RSI) and Awesome Oscillator (AO) are both below their neutral levels, indicating weak momentum.
If Bitcoin fails to break above the $59,560 resistance level, which aligns with its 50% Fibonacci retracement, it could potentially decline further to retest the $56,000 support level. However, a bullish scenario could emerge if BTC manages to close above the $62,042 level, invalidating the bearish outlook and setting the stage for a potential 5.5% rise toward the $65,379 resistance level.
Ethereum Faces Resistance, Prepares for Decline
Ethereum (ETH) has encountered resistance at its previously broken ascending trendline around $2,619. After retesting this level on August 29, ETH saw a 4% decline over the next three days. As of Monday, ETH trades slightly higher at $2,445, but the bearish momentum remains strong.
If the $2,619 resistance level continues to hold, Ethereum could experience a further decline, potentially dropping by 5% to retest the $2,327 support level. The RSI and AO on the daily chart are both below their neutral levels, reinforcing the bearish outlook. A break above $2,619, however, could trigger a bullish reversal, with ETH aiming for a higher high at $2,927, and possibly rallying 11% to challenge the $3,236 weekly resistance.
Ripple’s Bearish Sentiment Grows
Ripple (XRP) also exhibits signs of a bearish trend after closing below its 200-day Exponential Moving Average (EMA) at $0.552. Despite a slight uptick to $0.564 on Monday, XRP faces resistance at the 200-day EMA, and its momentum indicators, like RSI and AO, suggest further downside.
Should XRP fail to reclaim the $0.544 daily support level, a 10% drop could be imminent, with the next target being the August 7 low of $0.492. Conversely, if Ripple manages to break above the $0.626 resistance level, it could create a higher high, potentially leading to a 5.3% increase to revisit the $0.658 level from July 31.
The top three cryptocurrencies—Bitcoin, Ethereum, and Ripple—are currently facing significant resistance levels that could lead to further declines if not surpassed. Traders should watch these key levels closely, as any breakthroughs could signal shifts in market trends, offering potential opportunities for profit or caution in the face of continued bearish pressure.
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