Bitcoin risks falling further below $54,000

• Bitcoin price hovers around the $54,000 support level; a firm close below would suggest a decline ahead.
• Ethereum price is facing resistance around $2,300 and a close below it could extend the downtrend.
• Ripple price is approaching the $0.544 resistance; a rejection would suggest a continuation of the downtrend.

Bitcoin (BTC) hovers around the $54,000 support level; a firm close below would suggest a downside ahead, while Ethereum (ETH) and Ripple (XRP) prices approach key resistance levels; rejection would suggest the continuation of the downtrend.

Bitcoin price is poised for a decline if it closes below the $54,000 support level

Bitcoin rejected $59,560, its 50% price retracement level, on September 2 (pulled from a late July high to an early August low) and has fallen 8.7% over the next four days. It finds support around the $54,000 level on Saturday and trades just above $54,900 on Monday.

If BTC closes below the $54,000 level, it could drop 7% to retest the next daily support at $49,917.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) momentum indicator on the daily chart are trading below their respective neutral levels of 50 and zero, respectively. Both indicators suggest weak momentum and a continuation of the downtrend.

BTC/USDT Daily Chart

However, the bearish thesis will be invalidated if Bitcoin price breaks the $56,022 resistance. In this scenario, BTC could extend the positive move by 6% to review its 50% price retracement level at $59,560.

Ethereum price is poised for a drop if it continues to struggle below $2,300

Ethereum price is facing resistance at the $2,327 resistance level after falling 12.37% last week. On Monday, it is trading slightly higher by 0.22% at $2,302.

If ETH continues to face resistance from the $2,327 level and the downtrend line (broken from the adherence to multiple August 24 highs), it could drop 9% to retest the weekly level at $2,118.

The RSI and AO are trading below the neutral 50 and zero levels on the daily chart. These momentum indicators signal continued bearish dominance and imminent price declines on the horizon.

ETH/USDT Daily Chart

On the other hand, if ETH breaks above the $2,327 level and closes above the daily resistance at $2,421. This would invalidate the bearish thesis and it could rise 5.8% to retest its 61.8% Fibonacci retracement level at $2,564.

Ripple price is set for a downtrend if $0.544 acts as a resistance barrier

Ripple price has dipped below the 200-day EMA, hovering around $0.548, and the daily support level at $0.544 on Thursday. It fell 4.3% on Friday. It recovered slightly over the weekend and since Monday, it is trading at $0.529 and nearing the $0.544 resistance level.

If XRP recovers, it could face resistance around the daily resistance level of $0.544. It could drop 9.6% to retest the August 7 low of $0.492.

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

XRP/USDT Daily Chart

However, if Ripple price closes above the daily resistance level of $0.544, it would change the structure of the market by creating a higher high on the daily chart, which may lead to a 5% rally to revise the high of September 3 $0.572.