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- Bitcoin price reclaims the 2020 ascending trend line while printing a new rally high.
- Ethereum price steadies at key support, but bearish momentum divergence remains a concern.
- XRP price rebounds from the 38.2% Fibonacci retracement level with authority, prepares to press higher.
Bitcoin price, along with Ethereum and Ripple, has respected key support levels during the consolidations, with BTC and ETH correcting in time versus price, demonstrating the strength of the underlying bid.
Bitcoin price battles momentum divergence
Bitcoin price has emerged from the recent consolidation around the 50% retracement of the April-July correction at $46,849 and the 200-day simple moving average (SMA) at $45,719, reclaiming the 2020 ascending trend line that had become influential on price since August 7.
Today’s breakout, if it holds, has the potential to stretch the Bitcoin price rally to the 78.6% retracement of the April-June correction at $57,173 in the coming days before striking formidable resistance framed by the February, March, April and May highs. At that level, BTC investors can anticipate a substantive pullback.
A bearish BTC development that may interrupt the Bitcoin price journey higher is the emerging bearish momentum divergence on the daily Relative Strength Index (RSI). A bearish momentum divergence occurs when the RSI does not confirm new price highs with a new high.
BTC/USD daily chart
Even if the new Bitcoin price breakout fails to gain traction above the 2020 ascending trend line, it is well supported by the earlier trifecta of support between $41,500 and $43,000, which includes the January high, the February low, the June high, and the 38.2% retracement level. Only a daily close below $41,500 would alter the bullish BTC narrative.
Here, FXStreet’s analysts evaluate where BTC could be heading next as it looks primed to retrace.
Ethereum price faces a short term obstacle
The Ethereum price consolidation has been in time versus price, keeping the downside limited to -10% and confirming the previous resistance between $2,900 and $3,050 has become a new layer of support for the smart contracts giant.
The immediate potential for Ethereum price to mark a trajectory to the all-time high of $4,384 is weighed down by the resistance of the 61.8% Fibonacci retracement of the May-July correction at $3,358 and the 261.8% Fibonacci extension of the 2018 secular correction at $3,587. After those two levels, ETH is free to explore a new all-time high, including a jump to the 361.8% extension of the 2018 secular correction at $4,926.
Despite the bullish price structure, the daily RSI is showing a bearish momentum divergence at the recent Ethereum price high, indicating that the underlying momentum driving ETH has waned and questioning the ability of ETH to break the resistance levels mentioned above.
ETH/USD daily chart
Critical to the bullish forecast for Ethereum price is the durability of the support between $2,900 to $3,050. A daily close below introduces the potential for ETH to target the 50-day SMA at $2,486 or even the 200-day SMA at $2,313. It would be a significant bearish development, pointing to a more complex bottoming process or a resumption of the cyclical correction initiated in May.
Here, FXStreet’s analysts evaluate where ETH could be heading next as it tests crucial resistance level.
XRP price awaits a Golden Cross
XRP price has exploded higher since closing above the noteworthy resistance associated with the 200-day SMA on August 7, logging a 65% gain last week and breaking the resistance aligned with the psychologically important $1.00 and the 38.2% retracement of the April-July cyclical Ripple correction at $1.06.
This week XRP price has opted for consolidation, pulling back around 20% and successfully testing the $1.00-$1.06 range with a robust three-day rebound. The rebound repositioned Ripple at the 50% retracement of the April-July correction and removed the excess overbought condition daily RSI.
Moving forward, XRP price is poised to continue the new rally with some possible resistance at the 61.8% retracement at $1.40 before encountering heavy push-back at the 78.6% retracement, which is reinforced by a series of highs printed in the first half of May. It represents close to a 30% return from the current Ripple price.
Additionally, Ripple will be featuring a bullish Golden Cross on the daily chart within the next week if the upside XRP price momentum continues.
XRP/USD daily chart
A renewal of the XRP price pullback needs to hold the $1.00-$1.06 range on a daily closing basis. If not, Ripple will endure a 15% fall to the 200-day SMA at $0.84, thereby dimming the bullish aspirations of not only a break of the April high at $1.96 but also the all-time high of $3.30 recorded in January 2018.
The cryptocurrency majors continue to flex a bullish posture, discovering support at the crucial support prices while showing no distribution on down days. It is consistent with a strong cryptocurrency market and creates the energy for new rally highs and all-time highs for BTC and ETH.
Here, FXStreet’s analysts evaluate where Ripple could be heading next as it seems primed for a pullback before higher highs.
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