Bitcoin (BTC) hovers around the $54,000 support level; a firm close below would suggest a decline ahead while Ethereum (ETH) and Ripple (XRP) prices approach their key resistance levels; rejection would suggest continuing the downward trend.
Bitcoin was rejected at $59,560, its 50% price retracement level, on September 2(drawn from a high in late July to a low in early August) and dropped 8.7% the next four days. On Saturday, it finds support around the $54,000 level and trades slightly above $54,900 on Monday.
If BTC closes below the $54,000 level, it could decline 7% to retest the next daily support at $49,917.
The Relative Strength Index (RSI) and the Awesome Oscillator (AO) momentum indicators on the daily chart trade below their respective neutral levels of 50 and zero, respectively. Both indicators suggest weak momentum and a continuation of the downward trend.
BTC/USDT daily chart
However, the bearish thesis will be invalidated if Bitcoin’s price breaks above the $56,022 resistance. In this scenario, BTC could extend the positive move by 6% to revisit its 50% price retracement level at $59,560.
Ethereum price faces resistance by the $2,327 resistance level after falling 12.37% last week.On Monday, it trades slightly higher by 0.22% at $2,302.
If ETH continues to face resistance from the $2,327 level and its descending trendline (drawn from joining multiple high levels for August 24), it could decline 9% to retest its weekly level at $2,118.
The RSI and AO are trading below the neutral levels of 50 and zero on the daily chart. These momentum indicators signal a continuation of the bearish dominance and impending fall in prices on the horizon.
ETH/USDT daily chart
On the other hand, if ETH breaks above the $2,327 level and closes above the daily resistance at $2,421. This would invalidate the bearish thesis, and it could rally 5.8% to retest its 61.8% Fibonacci retracement level at $2,564.
Ripple price broke below the 200-day EMA, hovering around $0.548 and the daily support level at $0.544 on Thursday. It declined 4.3% on Friday. It recovered slightly on the weekend, and as of Monday, it trades at $0.529 and is approaching its resistance level of $0.544.
If XRP recovers, it could face resistance around the daily resistance level of $0.544. It could decline 9.6% to retest the August 7 low of $0.492.
The daily chart’s RSI and AO are trading below the neutral levels of 50 and zero. These momentum indicators strongly indicate bearish dominance.
XRP/USDT daily chart
However, if the Ripple price closes above the $0.544 daily resistance level, it would shift the market structure by creating a higher high on the daily chart, potentially leading to a 5% rise to revisit the September 3 high of $0.572.