As Bitcoin (BTC) and Ripple (XRP) break through key resistance levels, both cryptocurrencies are eyeing potential upward rallies. Meanwhile, Ethereum (ETH) is showing signs of recovery as it approaches a critical resistance point, suggesting that a significant price movement could be on the horizon.
Bitcoin's price action has been noteworthy this week, particularly after it broke above a descending trendline established from multiple high points since the end of July. As of Thursday, BTC is trading slightly above the 61.8% Fibonacci retracement level around $62,000, which is crucial for its next move.
If Bitcoin manages to close above this retracement level, it could rally approximately 5.6% to retest the daily resistance at $65,379. Supporting this bullish outlook is the Moving Average Convergence Divergence (MACD) indicator, which has signaled a bullish crossover on the daily chart. The MACD line has crossed above the signal line, coupled with rising green histogram bars above the neutral line, indicating growing upward momentum. Additionally, the Relative Strength Index (RSI) remains above its neutral level of 50, reinforcing the bullish sentiment.
However, if Bitcoin fails to maintain this upward momentum and breaks below the descending trendline, a drop below the $56,022 daily support level could occur, potentially leading to a further decline to the psychologically significant level of $54,000.
Ethereum has faced its challenges, notably failing to close above the daily resistance level of $2,461 on September 13, which led to a subsequent decline of 5.88% over the next three days. However, ETH has demonstrated a recovery of 3.4% from Tuesday to Wednesday, and it is currently trading at $2,394, inching closer to the critical resistance level.
A successful close above $2,461 could propel Ethereum by 5% to retest its 61.8% Fibonacci retracement level at $2,565, drawn from the August 24 swing high of $2,820 to the September 6 swing low of $2,152. The MACD indicator also supports this positive outlook, showing a bullish crossover on the daily chart. Yet, the RSI remains close to its neutral level, indicating a potential lack of momentum.
If Ethereum fails to break above the daily resistance, it risks a decline to retest its September 6 low of $2,152.
Ripple has been making positive strides, particularly after retesting and bouncing off its 100-day Exponential Moving Average (EMA) at $0.554. This EMA aligns with the daily support level at $0.544, creating a significant support zone. Currently, XRP trades above $0.586.
Should the 100-day EMA and daily support around $0.544 hold, Ripple could continue its upward trend, potentially retesting its daily resistance level at $0.626. The MACD also indicates a bullish crossover, further supporting this upward trajectory. The RSI is above its neutral level of 50, adding to the bullish momentum.
However, if Ripple's daily candlestick closes below the $0.544 support level, it could result in a decline of approximately 7.5% to retest the September 6 low of $0.502.
As Bitcoin, Ethereum, and Ripple show signs of potential rallies, market participants are keeping a close eye on key resistance and support levels. The indicators suggest bullish momentum, but traders should remain cautious of potential reversals should these cryptocurrencies fail to maintain their current positions. The coming days will be crucial in determining the trajectory of these major cryptocurrencies as they navigate the complexities of the market.
September 2024, Cryptoniteuae