Ethereum
Bitcoin breaks through descending wedge
- Bitcoin price breaks out of descending wedge, signaling bullish potential.
- Ethereum price remains supported at $3,288, the 61.8% Fibonacci retracement level.
- Ripple price still faces resistance at $0.500.
Bitcoin (BTC) breaking through the descending wedge trend on Monday signals a bullish move, with Ethereum (ETH) and Ripple (XRP) poised to follow as they find support at key levels, setting the stage for a rally to the increase in the days to come.
Bitcoin Price Looks Promising
THE Bitcoin Price breaks out of the descending wedge on Monday and is trading 1.24% higher at the $63,571 level.
If BTC price closes above the daily resistance level at $63,956, it could rise by 5% to retest its next weekly resistance at $67,147.
The Relative Strength Index (RSI) and the Awesome oscillator on the daily chart are below their neutral levels of 50 and zero. If the bulls do indeed return, then both momentum indicators should maintain their positions above their respective neutral levels.
If the bulls are aggressive and the overall outlook for the cryptocurrency market is positive, BTC could extend another 6% rally to revisit its weekly resistance at $71,280.
BTC/USDT Daily Chart
However, if BTC closes above the $58,375 level and forms a lower low in the daily time frame, it could indicate that bearish sentiment persists. Such a development could trigger a 3% drop in Bitcoin price, returning to its May 1 low of $56,522.
Ethereum Price Shows Upside Potential
Ethereum Price retested its $3,288 support level, the 61.8% Fibonacci retracement level from the May 14 low of $2,862 to the May 27 high of $3,977 on June 24.
ETH rebounded 6.7% from the 61.8% Fibonacci retracement level and is trading around $3,501, up about 2% on Monday.
If this support at $3,288 holds, ETH price could surge 6% from its current trading level of $3,457 to reach its previous high of $3,717 on June 9.
The Relative Strength Index (RSI) and the Awesome Oscillator in the daily chart are below their neutral levels of 50 and zero. If the bulls do indeed return, then both momentum indicators should maintain their positions above their respective neutral levels.
If ETH closes above $3,717, the June 9 high, it could extend an additional 7% rally to reach its previous resistance level of $3,977.
ETH/USDT daily chart
On the other hand, if Ethereum’s daily candlestick price were to close below the $3,288 level, it would produce a lower low and signal a breakdown in the market structure. This move would invalidate the aforementioned bullish thesis, potentially triggering an additional 13% crash from the previous support level of $2,862.
Ripple price shows its resilience
Ripple price is currently trading at $0.478, below the daily resistance level of $0.500.
If Ripple price breaks the 0.500 barrier, it could rise by 7%, from $0.500 to $0.532, its previous high from June 5.
On the daily chart, the Relative Strength Index (RSI) is currently below the 50 mark, indicating neutral to bearish sentiment, while the Awesome Oscillator (AO) remains below zero, suggesting bearish momentum. Both indicators need to cross their critical thresholds of 50 for the RSI and zero for the AO for a sustained uptrend. Such a development would strengthen the ongoing rally in the market.
If the XRP daily candlestick closes above $0.532, it could extend an additional 9% rally to $0.581, a 50% price retracement level of $0.419 and $0.744 from March 11 to April 13.
XRP/USDT daily chart
Conversely, if the daily Ripple price candlestick closes below $0.450, marking the June 7 low, it would invalidate the uptrend. outlook establishing a low on the daily chart. This scenario could lead to a 7% drop in the price of XRP towards the April 13 low of $0.419.