- Bitcoin struggles to break through the $70,000 resistance, while Ethereum and Ripple show potential for bullish rallies if their key support levels hold.
- Market indicators suggest strong momentum for ETH and XRP, but a bearish shift could lead to significant price drops.
Bitcoin Price Faces Resistance
Bitcoin (BTC) is experiencing a significant challenge in breaking through the $70,000 threshold. Recently, the price retested the daily support at $64,737 on July 25 and surged by 4% over the next three days. However, BTC is now facing resistance at the weekly level of $69,648. As of Tuesday, it trades slightly down by 0.67% at $66,406.
The Relative Strength Index (RSI) and the Awesome Oscillator (AO) indicators on the daily chart are both above their neutral levels of 50 and zero, respectively. This indicates a strong bullish momentum in the market. If the daily support at $66,406 and the ascending trendline hold, Bitcoin could potentially rise by 10% to retest its June 7 high of $71,997.
However, a close below $62,736 and a break below the ascending trendline would shift the market structure from bullish to bearish, potentially leading to a 10% drop in Bitcoin’s price to retest its July 12 low of $56,405.
Ethereum Poised for a Rally
Ethereum (ETH) has been showing signs of strength after retesting the daily support level around $3,076 on July 25. The price bounced by 4.63% over the next four days and as of Tuesday, it trades slightly lower by 0.43% at $3,302.
If the support at $3,076 holds, Ethereum could rally 15% to retest its 61.8% Fibonacci retracement level at $3,530. The RSI and AO indicators have briefly slipped below their neutral levels but must maintain their positions above these levels to sustain the bullish momentum.
If the bullish sentiment prevails and the overall market outlook remains optimistic, Ethereum’s price could close above the $3,530 mark, potentially continuing its rally by 5.3% to challenge its June 9 daily peak of $3,721. Conversely, a daily close below $2,817 could signal a persistent bearish trend, triggering a 7% decline to revisit the daily support at $2,621.
Ripple Eyes a Rally
Ripple (XRP) has also been showing resilience, retesting its daily support at $0.544 and rallying 5% earlier this week. As of Tuesday, XRP trades slightly lower by 0.7% at $0.597.
If Ripple closes above the $0.643 level, it could rally by 13.3% to retest its next daily resistance level at $0.724. The RSI and AO indicators are above their neutral levels, suggesting bullish dominance.
However, if Ripple’s daily candlestick closes below the $0.510 level, it would indicate sustained bearish sentiment, potentially leading to an 18% crash in Ripple’s price, targeting a revisit of its weekly support at $0.413.
The top three cryptocurrencies are navigating crucial support and resistance levels. While Bitcoin faces a tough barrier at $70,000, Ethereum and Ripple are poised for potential rallies if their support levels hold. Investors should keep a close watch on these critical levels and market indicators to gauge the next moves in the cryptocurrency market.
