The crypto market started August on a cautious note. Bitcoin, Ethereum, and Ripple faced strong resistance zones.
Price action slowed after recent bullish momentum. The top three digital assets — BTC, ETH, and XRP — slipped away from recent highs.
All three now trade near key support levels. Bears are active, and volume is thinning.
Why Are Crypto Bulls Struggling This Week?
Bitcoin tried to go over $61,000 but got rejected. It had resistance close to $61,400 before it dropped toward $59,000.
Ethereum followed the weakness. ETH rejected at $3,500 and retraced back under $3,400.
The ETH outlook has now turned bearish. Ripple’s price also dipped.
XRP failed to penetrate past $0.65 and is back at $0.63. That resistance has been stubborn since July.
The investor sentiment has numbed. Regulatory fears and U.S. inflation numbers due out in a few days have served as pressure.
What Resistance Levels Are Capping Prices?
The 50-day EMA for Bitcoin sits at $61,400.This zone remains resistant to upward action. A close above this could hint at a trend reversal.
Ethereum has been struggling at around the $3,500 zone. This level coincides with its 100-day EMA. It will require strong momentum to get above this.
XRP is facing a tight resistance range between $0.65 and $0.68. This range has been capping rallies for the past several weeks.
Unless a breakout happens, the upside remains limited. This decrease in trading volumes in the three tokens suggests consolidation is likely.
Could the Market See a Deeper Correction?
Technical indicators hint at further downside. Bitcoin has been unable to make fresh highs. Next key support for BTC could be found at 58,400.
Continued pressure could see Ethereum test $3,300. Below that lies the next major thrust at $3,200. XRP might trade down towards 60 cents.
That would mean an 8% drop from this week’s highs. Macro developments remain the core drivers for the crypto market, with upcoming U.S. macro-data also playing the lead role in risk sentiment.
Bitcoin Holds Ground but Fails to Extend Rally
$59,800 is the consolidation area for Bitcoin. The support continues to hold, although upside momentum seems gone.
The Relative Strength Index (RSI) still lingers around 50, suggesting market neutrality. In order to regain bullish momentum, BTC must muster above $61,400.
If not, it sets the downside risk towards $56,000. Macro conditions, including equities and yields, will remain a key factor.
Ethereum Sees Declining Momentum After Rejection
Ethereum has pulled back after rejection at the $3,485 level. Currently, it trades just above $3,380.
RSI has declined below 50. The MACD indicates a bearish crossover. The path for ETH is downward unless the buyers show up. Support rests at $3,300, with $3,180 below it.
A breakout over $3,550 would indicate the start of a bullish trend, and until then, price movement remains sideways or bearish. A slowdown in on-chain activity is also dampening the overall sentiment.
Ripple’s XRP Faces Stiff Resistance at $0.65
Ripple has found it hard to push. XRP has been rejected at $0.652 and has declined to $0.631. $0.63 is acting as near-term support. If this breaks, $0.60 may be tested very quickly.
The resistance levels for XRP remain solid between $0.65 and $0.68. Bulls must forcefully breach this for any meaningful rally to begin.
Volume is low, and technical indicators are neutral to bearish. There is a 4-hour bearish divergence, so short-term weakness could stay around.
Also Read: Bitcoin Tanks while AI Tokens Rocket in Modified Market
Conclusion
Uncertainty prevails. Strong resistance zones stand in the way of price action for Bitcoin, Ethereum, and Ripple.
Momentum has slowed and disappeared. In the presence of sellers reclaiming key levels, this is sure to lure a more extensive correction. The major triggers are macroeconomic, like U.S. inflation data and regulatory news.
Meanwhile, the outlook is neutral-bearish for BTC, ETH, and XRP. For now, traders will need to wait for clear breakouts or breakdowns to stake their bets.
