Bitcoin breaks above the $56,000 resistance level

• Bitcoin Price Approaches $56,022 Support Level; if the level is maintained, he can continue his recovery.
• Ethereum price is facing resistance around the $2,421 level, and a close below this level could extend the downtrend.
• Ripple price is facing rejection around the 200-day EMA at $0.548, going lower.

Bitcoin (BTC) price is approaching a critical support level; if it holds, it could pave the way for a further recovery. However, Ethereum (ETH) and Ripple (XRP) are finding rejection around their resistance levels and could be set for declines, diverging from BTC’s potential rally.

Bitcoin price could continue its recovery if it finds support around the $56,000 level

Bitcoin price retested and found support around the $54,000 level on Saturday, rebounding 6% over the next three days. It broke and closed above the daily resistance level of $56,022 on Monday. At time of writing on Wednesday, it is trading slightly down 1% at $57,038.

If $56,022 continues to hold as support, BTC could rise 6% to retest the 50% price retracement level at $59,529 (drawn from a late July high to an early August low) .

The Relative Strength Index (RSI) on the daily chart is hovering around its neutral level of 50, indicating indecision among investors. The Awesome Oscillator (AO) is still trading well below its neutral level of zero. Both indicators would need to trade above their respective neutral levels for any future rally to be supported.

BTC/USDT Daily Chart

This bullish thesis will be invalidated if Bitcoin price closes below the $54,000 support level. In this scenario, BTC could fall another 7% and retest the next daily support at $49,917.

Ethereum price is set for a decline as it approaches its daily resistance level

Ethereum price is facing rejection around the daily resistance at $2,421 after recovering 7.5% in the last four days. At time of writing on Wednesday, it is trading slightly lower by 1.6% at $2,349.

If ETH continues to face resistance from the $2,421 level, it could drop 5.5% from its current trading level to retest the September 7 low of $2,225.

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 and closes above the $2,421 level, 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 at downside risk as it finds rejection around the 200-day EMA

Ripple price is finding rejection around the 200-day exponential moving average (EMA), hovering around $0.548 and the daily support level at $0.544 on Tuesday. As of Wednesday, it is trading slightly down 1.37% at $0.533.

If the 200-day EMA at $0.548 continues to hold as resistance, it could drop 6% to retest the September 6 low of $0.502.

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 breaks above the daily resistance level of $0.544 and closes above the 200-day EMA at $0.548. This would invalidate the bearish thesis and it could rise 4% to revise the September 3 high of $0.572.