Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin price consolidates between $57,000 and $62,000 range
- Bitcoin price consolidates between $57,000 and $62,000, with momentum indicators suggesting an impending bearish trend.
- Ethereum price is at risk of a decline if it approaches the resistance barrier of around $2,843.
- 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 likely to decline after failing to surpass their respective key resistance levels, whereas Ripple (XRP) is showing stability around the daily support level of $0.544, indicating the potential for a recovery.
Bitcoin price stalls, trading between $57,000 and $62,000 range
Bitcoin price consolidates between $57,115 and $62,066 with Fibonacci retracement levels of 38.2% and 61.8%, respectively (drawn from the swing high of $70,079 on July 29 to the low of $49,101 on August 5). As of Monday, it trades slightly higher by 0.1% at $58,499.
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 $62,226, making a key resistance zone.
Failure to surpass $62,066 could lead to a 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 Awesome Oscillator (AO) trade below their neutral levels of 50 and zero, respectively, suggesting an impending bearish trend.
BTC/USDT daily chart
On the other hand, 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, possibly leading to a further 6% price increase and testing the weekly resistance at $69,648.
Ethereum price at risk of decline after facing key resistance barrier
Ethereum is approaching 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. On Monday, it's trading slightly higher at $2,637 after bouncing back from its August 12 low of $2,510 on Thursday.
If the $2,843 level holds as resistance, it may fall 12% to test the psychological support at $2,500.
On the daily chart, the RSI and AO trade below their neutral levels of 50 and zero, respectively, suggesting an impending bearish trend.
ETH/USDT daily chart
However, 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 finds support around its daily support level of $0.544, which coincides with the 100-day EMA at $0.542 on Friday. On Monday, it trades slightly higher by 0.5% at $0.566.
If the daily support at $0.544 holds, XRP could rally 10% to challenge the next resistance level at $0.643.
The daily chart's RSI and AO have briefly slipped below their neutral levels of 50 and zero, respectively. If bulls are indeed making a comeback, then both momentum indicators must maintain their positions above their respective mean levels. Such a development would add a tailwind to the recovery rally.
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.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
