Bitcoin could fall after retesting key resistance level

• Bitcoin price is retesting the key resistance area at $62,066 and the rejection may continue to drive its downtrend.
• Ethereum price sees a brief rally before a potential downtrend continues.
• Ripple price retests its daily resistance level at $0.643; failure to close above this level could result in a price decline.

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) each saw modest recoveries with brief moves higher on Thursday. However, these gains seem temporary as technical analysis and market conditions indicate that the overall bearish trends for these cryptocurrencies are expected to resume in the coming days.

Bitcoin price is poised for a decline after rejection at the key resistance level

Bitcoin price retested its 61.8% Fibonacci retracement level at $62,066 (pulled from the July 29 swing high of $70,079 to the Monday low of $49,101) on Thursday. Since Friday, it is trading slightly lower by 0.6% at $61,380.

If BTC faces rejection at the $62,066 level, which also coincides with the broken trendline and 100-day exponential moving average (EMA) at around $63,021, it will be a critical area to watch.

Failure to break above $62,066 could trigger a 19% crash back to retest the daily support level of $49,917.

The Relative Strength Index (RSI) indicator on the daily chart is facing resistance around the neutral level of 50, and the Awesome Oscillator (AO) is still below its neutral level of zero. However, they are comfortably below their respective neutral levels of 50 and zero. These momentum indicators strongly point to bearish dominance.

BTC/USDT Daily Chart

On the other hand, if BTC closes above the August 2 high of $65,596, it would change the market structure by forming a higher high on the daily time frame. Such a scenario could lead to a 6% rise in Bitcoin price to retest the weekly resistance at $69,648.

Ethereum price vulnerable to downside after hitting key resistance barrier

Ethereum price closed below the daily support level of $2,927 on August 3, falling 16.5% over the next two days. However, after testing weekly support at $2,118, it bounced back with a 10.68% gain from Tuesday to Thursday. As of Friday, it is trading slightly lower at $2,668, down 0.3%.

If ETH continues to rally, it may encounter resistance around the 50% retracement level at $2,843 (drawn from the swing high of $3,562 on July 22 and the low of $2,124 on Monday). This level closely aligns with daily resistance at $2,927, making it a crucial area to monitor for a potential reversal.

If Ethereum price fails to break above the $2,843 level, it could drop 25% to retest the weekly support at $2,118.

The daily chart’s RSI and AO have dropped below their neutral levels of 50 and zero, respectively, indicating an overall bearish trend based on these momentum indicators.

ETH/USDT Daily Chart

However, if Ethereum price closes above the July 29 daily high of $3,396, it would create a higher high on the daily time frame, potentially leading to a 5% rally as it retests the July 22 high of $3,562.

Ripple price is poised for a decline as the key resistance level holds firm

Ripple price retested its daily resistance level at $0.643 on Wednesday and faced several rejections at this level. Since Friday, it is trading slightly lower by 0.2% at $0.616.

If the $0.643 level holds as resistance, XRP could crash 15% to review its next daily support at $0.544.

The daily chart’s RSI and AO recently broke above their neutral levels of 50 and zero, respectively. However, for the bears to take control, both momentum indicators must fall below their neutral levels, which would reinforce the bearish trend.

XRP/USDT Daily Chart

Conversely, if Ripple price closes above the daily resistance level of $0.643, it would change the structure of the market by forming a higher high on the daily chart, potentially leading a 12% rally towards the next daily resistance level at $0.724.