- Bitcoin price is oscillating at the 50% retracement level at $46,849 as the underlying momentum continues to weaken.
- Ethereum price is trying to maintain its July trendline as divergent bearish momentum accompanies recent rallies.
- XRP price strength is raising the daily RSI to the most overbought reading since the April high.
Bitcoin and Ethereum price meet the jump points of the July rally as the Fibonacci pivot levels appear as massive resistance. XRP price has paused, but it probably won’t last for long.
Bitcoin price has reached a minor inflection point
Bitcoin price closed last week with its fourth consecutive weekly gain, marking the first time since February and lifting BTC to August gains of 11.48% and 32.14% for the third quarter. It’s the best August performance since the August 2017 gain of 66.05% and the best third-quarter return since the 76.73% rise in the third quarter of 2017.
However, the momentum has declined significantly since the August 7 close, just below the 200-day simple moving average (SMA) at $44,637. Over the past nine trading days, bitcoin price has risen by only 3.61%, carrying bitcoin to new highs but causing bearish momentum to diverge as the RSI did not confirm price hikes on different time frames.
9 hour BTC / USD . chart
The divergence of bearish momentum is putting the July rally at risk in the short term. It raises the possibility that Bitcoin will test the previous Trifecta of resistance (now support) between $41,500 and $43,000, including the 38.2% retracement of the April-July retracement, resulting in an 11% retracement from the current price.
If the BTC correction gains momentum below the triple support, Bitcoin price will not face support until the 50-day simple moving average at $37,446, which is currently near the critical June 29 high at $35301.
BTC/USD daily chart
The potential for a deeper pullback is higher than it was a week ago, but given a variety of support, including the 200-day SMA at $45,473 and a 38.2% retracement at $42,589, Bitcoin weakness could be well contained. It leads to correction in time versus price. The bearish momentum divergence can still be reconciled, creating an additional entry price for late entrants and removing weaker stockholders.
As Bitcoin price momentum slows and altcoins are broadening their participation in the overall rally in the cryptocurrency complex, BTC’s market dominance has broken the May uptrend. It is correcting now, currently at 44.15%. It does not warn of a pending crash of the cryptocurrency but a correction.
BTC/USD Market Dominance – Daily Chart
Here, FXStreet analysts are assessing which direction Bitcoin could head next as it appears to be ready for a correction.
Ethereum price has reached major market dominance level
Ethereum price closed last week with its fourth consecutive weekly gain, marking the first time since May and lifting ETH to August gains of 27.12% and 41.48% for the third quarter. It’s the best performance for August since the August 2017 gain of 93.81%.
Similar to the price of Bitcoin, the price of Ethereum recorded a clear drop in momentum since claiming a 50% retracement on August 7. Over the past 9 sessions, ETH is up 5.62%, making new highs but showing divergence in bearish momentum at the same time as the RSI did not confirm the price on different time frames.
ETH/USD 9 hour chart
The divergence of bearish momentum increases the possibility of ETH falling, which could push Ethereum price lower from the $2900 to $3,050 range, which is an 11% retracement. The range was reinforced by the 50% retracement level of the May-July correction at $3,042 and the 50 nine-hour simple moving average at $2,934.
The daily close below $2900 changes the Ethereum price outlook at least in the short term as there is no meaningful support until the confluence of the July 7 high at $2,411 and the 50-day simple moving average at $2,410.
ETH/USD daily chart
Since the July drop, the 80%+ rally in the Ethereum price has pushed ETH market dominance beyond the 50% retracement of the 2017-2019 retracement of 18.82% and the psychologically significant 20.00% where the smart contract giant found resistance in early May.
ETH/USD Market Dominance – Weekly Chart
Here, FXStreet analysts are assessing which direction ETH could head next as it tests a crucial resistance level.
XRP price regains the bullish shape it had earlier in the year
XRP price closed last week with its fourth consecutive weekly gain, marking the first time since April and lifting Ripple to August gains of 65.77% and 74.75% for the third quarter. It’s the best August performance since the August 2017 gain of 57.68%.
Last week’s gain of 65.04% was the best weekly performance since the beginning of April. It broke the resistance formed by the psychologically important $1.00 level and the 38.2% retracement of the April-July retracement at $1.06, as well as the 50% retracement at $1.23.
XRP/USD daily chart
Ripple’s daily RSI is showing an overbought condition which could portend a pullback in the short term. As long as the XRP price holds the support given at $1.00 and is down 38% at $1.06, Ripple is preparing for a price rally. The combination of the 78.6% retracement at $1.65 with the tops of the first half of May would act as a convincing resistance before testing the April high at $1.96.
The price of XRP has set the token for international settlements to achieve better results, including testing its April high at $1.96. However, it is essential for Ripple investors not to lose sight of the ongoing legal battle with the Securities and Exchange Commission. If Ripple suffers a temporary defeat in action, this could negatively affect the price of XRP, and potentially significantly.
XRP/USD monthly chart
BTC and ETH charts indicate the period of consolidation or pullback. However, the availability of strong support below current prices suggests that any pullback will be limited, taking the form of a timely correction against the price. Instead, the price of XRP reached escape velocity last week, which quickly prepared Ripple for higher prices, especially in the aggressively expanding crypto pool of altcoins.
Here, FXStreet analysts are assessing which direction Ripple could go next as it attempts to resume the uptrend.