Bitcoin price trades between $57,000 to $62,000 levels
- Bitcoin price fails to rise for a second consecutive day and remains within its broad consolidation zone between $57,000 and $62,000.
- Ethereum price is at risk of a further decline if it fails to find support at around $2,500.
- Ripple price finds stability around the daily support level of $0.544, with potential recovery on the cards.
Bitcoin (BTC) and Ethereum (ETH) prices are expected to drop after struggling to break through critical resistance levels, and momentum indicators show bearish biases. In contrast, Ripple (XRP) is showing stability near its daily support level of $0.544, suggesting a possible rebound.
Bitcoin price holds steady, bouncing between $57,000 and $62,000
Bitcoin price continues to consolidate between $57,115 and $62,066, the Fibonacci retracement levels of 38.2% and 61.8%, respectively, drawn from the high on July 29 to the low on August 5. On Wednesday, it trades slightly higher by 0.6% to $59,428 at the time of writing.
Suppose BTC rises back to the 61.8% Fibonacci retracement at $62,066. In that case, it may find some resistance at this level, as it aligns with the previously breached trendline and the 100-day Exponential Moving Average of around $62,217, making it a key resistance zone.
If it does not surpass $62,066, it could drop to $57,115 before potentially declining by 19% to revisit the $49,917 daily support level.
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) still trade below their neutral levels of 50 and zero, respectively, suggesting an impending bearish trend.
BTC/USDT daily chart
However, if Bitcoin’s price can close above $62,066, a rise towards the August 2 high of $65,596 would be on the cards as it would set a higher high on the daily chart. This could lead to a further 6% price increase to test the weekly resistance at $69,648.
Ethereum price at risk of decline if it closes below a key support level
Ethereum price consolidates between its 50% retracement level of $2,843 (based on the swing high of $3,562 from July 22 and the swing low of $2,124 from August 5) and August 12 low of $2,510. On Wednesday, it’s trading slightly higher by 0.75% at $2,590.
If the $2,843 level holds as resistance, it may drop to $2,510 before potentially declining by 4.5% to test the psychological support at $2,400.
On the daily chart, the RSI and AO trade below their neutral levels of 50 and zero, respectively, suggesting a weak momentum and an impending bearish trend.
ETH/USDT daily chart
On the other hand, if Ethereum’s price closes above $2,843, it could rise to the July 29 high of $3,396, establishing a higher high on the daily chart, potentially driving a 5% increase to revisit the July 22 high of $3,562.
Ripple price shows potential for a rally after finding support around the daily level
Ripple price found support around its daily support level of $0.544, which coincides with the 100-day EMA at $0.545 on Friday and rose 6.5% the following three days. As of Wednesday, it trades slightly higher by 0.5% at $0.597.
If the daily support at $0.544 holds, XRP could rally 7% from its current trading level at $0.597 to challenge the next resistance level at $0.643.
The daily chart’s RSI and AO have flipped above their neutral levels of 50 and zero, respectively. These momentum indicators indicate bullish dominance.
XRP/USDT daily chart
Conversely, if Ripple’s price closes below the $0.544 daily support level, it would shift the market structure by creating a lower low on the daily chart, potentially leading to a 9.5% decline to revisit the August 7 low of $0.492.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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