Bitcoin struggles below $60,000

VaselineAugust 30, 2024

0 3 minutes read

Bitcoin price is above the $58,700 level; a close lower would continue its bearish trend.
Ethereum price is finding resistance around its trend retracement, with a decline ahead.
Ripple price finds support around 200-day EMA at $0.552; a slip lower would signal a bearish move on the horizon.

Bitcoin (BTC) and Ripple (XRP) prices are hovering around their critical support level; closing below could signal a decline ahead. While Ethereum (ETH) price is finding rejection around its resistance level, eyeing a bearish move on the horizon.

Bitcoin price is set for a downleg if it falls below the $58,700 level

Bitcoin price bounced around the daily resistance level at $65,379 on Sunday, down 8% over the next three days. At the time of writing on Friday, it is hovering around the $59,306 level.

If BTC continues to decline and close below the $58,783 level, it could further decline by 4.5% to retest the daily support at $56,002.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart have dipped below their neutral levels of 50 and zero, respectively. Both indicators suggest weak momentum and an impending bear trend.

BTC/USDT Daily Chart

However, let’s assume Bitcoin price finds support at around $58,700 and closes above $62,042, its 61.8% Fibonacci retracement level (drawn from a high in late July to a low in early August) , the bear thesis will be invalidated. BTC could rise 5.5% to revise its daily resistance level at $65,379.

Ethereum price is poised for a downtrend after retesting its resistance barrier

Ethereum price retested its broken uptrend line around $2,619 on Thursday and faced resistance around it. This trend line was formed by connecting several August 7 lows. As of Friday, it continues to trade slightly lower by 0.4% at $2,516.

If the previously broken uptrend line at $2,619 continues to act as resistance, ETH could further decline by 6% to retest the August 8 low of $2,327.

The daily chart’s RSI and AO are trading below the neutral 50 and zero levels. These momentum indicators strongly point to bearish dominance.

ETH/USDT Daily Chart

If ETH breaks above the $2,619 level and closes above the daily resistance at $2,927, forming a higher high on the daily chart, this would invalidate the bearish thesis and could rise 11% to retest the weekly resistance level at $3,236 .

Ripple price is at downside risk if it falls below the 200-day EMA

Ripple price found support around the 200-day exponential moving average (EMA) at $0.552 after being rejected by its daily resistance level of $0.626 on August 24. As of Friday, it is trading up 0.4% to $0.564.
If XRP breaks below the 200-day EMA and closes below $0.544, its daily support level, it could drop 10% to retest the August 7 low of $0.492.

The RSI and AO are trading below the neutral 50 and zero levels on the daily chart. These momentum indicators strongly point to bearish dominance and imminent decline on the horizon.

XRP/USDT Daily Chart

However, if Ripple price closes above the daily resistance level of $0.626, it would change the structure of the market by creating a higher high on the daily chart, which may lead to a 5.3% increase to revise the high of 31 July of $0.658.

Frequently Asked Questions About Cryptocurrency Values

The developer or creator of each cryptocurrency decides the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted through mining, staking or other mechanisms. This is defined by the underlying blockchain technology algorithm. Since its inception, a total of 19,445,656 BTC have been mined, which is the circulating supply of Bitcoin. On the other hand, the circulating supply can also be reduced by actions such as burning tokens or erroneously sending assets to the addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a particular asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is over $570 billion, which is the result of over 19 million BTC in circulation multiplied by the price of Bitcoin around $29,600.

Trading volume refers to the total number of tokens for a particular asset that have been traded or exchanged between buyers and sellers during set trading hours, for example 24 hours. It is used to measure market sentiment, this metric combines all volumes from centralized exchanges and decentralized exchanges. Increasing trading volume often denotes demand for a particular asset as more people buy and sell the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure that perpetual contract prices match spot markets. It defines a mechanism through exchanges to ensure that future prices and periodic payments of indexed prices converge regularly. When the funding rate is positive, the perpetual contract price is higher than the mark price. This means that traders who are bullish and have opened long positions pay traders who are short. On the other hand, a negative funding rate means that perpetual prices are below the reference price, and thus traders with short positions pay traders who opened long positions.

VaselineAugust 30, 2024

0 3 minutes read