- Bitcoin price rests below the $27,500 level as those who profited in the September 12-18 rise recently await the next move.
- Ethereum price is likely to fall 5% if BTC shows weakness, sending ETH for a liquidity grab below the $1,552 support level.
- Ripple price must break and close above the mean threshold at $0.5337 or fall 10% retracing the $0.4600 level.
Bitcoin (BTC) price holds steady with reduced trading volume as the weekend mood sets in. Ethereum (ETH) price hackens to the BTC cue, with both cryptos engaging low gear. Meanwhile, Ripple (XRP) price is rejected from a key level but maintains an overall bullish outlook.
Also Read: Bitcoin Weekly Forecast: BTC downside likely after 20-week EMA culls bulls
Bitcoin price holds below $27,000
Bitcoin (BTC) price dropped below the $27,000 psychological level, with investors digesting the FOMC meeting reports following the Federal Interest Rate decision. The current stance could be attributed to the weekend mood, or more ideally, traders having taken profits from the September 12-19 upswing and are now waiting for the next move.
It is likely that Bitcoin price could extend the slump below the $26,000 psychological level before a possible pullback with the odds of a move below the $25,229 level increasing by the day. A decisive break and close below this level would confirm the downtrend.
BTC/USDT 1-day chart
However, if the Relative Strength Index (RSI) decisively moves above 50, Bitcoin price could shatter the downtrend line at $27,210, clearing the path for more gains. This could potentially deliver BTC above the $28,000 psychological level.
Ethereum price follows BTC to the heel
Ethereum (ETH) price could have little to say as far as its next move is concerned, considering the Proof-of-Stake (PoS) token has been mirroring the price action of Bitcoin for quite some time now, owing to its strong correlation with BTC.
Independently, however, Ethereum price remains bare, with momentum falling as indicated by the RSI dropping. The immediate support at $1,624 is therefore critical for ETH, as losing it would plunge it back under a confining bearish trendline. The downtrend could go as low as the $1,552 level.
ETH/USDT 1-day chart
Otherwise, if bullish momentum increases, Ethereum price could very well rise above the immediate hurdle at $1,682, then $1,791, with a confirmed daily candlestick close above the $1,900 likely to kickstart an uptrend. The steady climb of the AO is a good sign, with the sustained green shade solidifying the case for the bulls.
Also Read: Ethereum and Bitcoin are ready to dive
Ripple price repels the MT
Ripple (XRP) price has repelled the supply zone order block's mean threshold (MT) at $0.5337. However, the overall outlook is still bullish, with the RSI inclined north and the AO steadily climbing to the positive region. Nevertheless, investors should still wait for confirmation above the aforementioned level for the uptrend to be considered plausible.
XRP/USDT 1-day chart
A strong rejection from the mean threshold, potentially positioning Ripple price under $0.4600 could mean the supply zone will hold as a resistance level, with the ensuing selling pressure sending Ripple price toward the foot of the latest uptrend at $0.4600. In the dire case, the downtrend could continue, with the remittance token potentially tagging the May lows at $0.4191.
Also Read: XRP is the next Bitcoin if we solve a multi-trillion-dollar problem, Ripple CEO Brad Garlinghouse
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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