BTC temporarily retraces, taking major altcoins with it

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The price of Bitcoin has plunged into the demand zone of $ 43,150 to $ 45,791 in search of a stable base. The price of Ethereum is trading below the psychological level of $ 3,000, anticipating a sell off at $ 2,893. Ripple price shows strength as it re-tests the recently flipped $ 1.09 support level.

The price of Bitcoin has slipped deep into the newly formed demand zone where it is seeking stable ground for a trend reversal. This move pushed many, but not all, altcoins into a momentary downtrend. Investors can expect this descent to turn into a recovery soon.

Bitcoin price awaits resurgence of buyers

The price of Bitcoin is currently trading inside the demand zone of $ 43,150 to $ 45,791 after establishing a high range of $ 47,886 on August 13. If this trend continues, BTC could slide 5% and retest the high range at $ 42,451.

A resurgence of buyers here could trigger a new uptrend towards $ 49,024. Successful crossing of this barrier would pave the way for the $ 50,958 supply area. In a very bullish case, the big crypto could take a run to the cap of $ 55,210.

1 Day BTC / USDT Chart

On the flip side, things could turn sour for the pioneer cryptocurrency if the support level of $ 42,451 is broken. This move will confirm the weakness of buyers and pave the way for a further descent.

In this case, the Bitcoin price is likely to retest the support levels at $ 41,333 and $ 40,500. A breakdown of $ 40,500 will invalidate the bullish thesis.

Ethereum price drops below critical level

The price of Ethereum has fallen by around 11% over the past two days and is currently grappling with the psychological level of $ 3,000. ETH appears to be stuck between a critical support barrier at $ 3,000 and a supply area of ​​$ 3,201 to $ 3,559.

Given the recent massive selloff, the price of Ethereum should continue to fall to find support around the demand level of $ 2,893.

A potential spike in selling pressure here could end the low higher and trigger a new uptrend. The resulting rise must produce a decisive daily close above $ 3,559 to confirm further upward movement.

If this happens, the Ethereum price has free space to move up to the caps of $ 3,716 and $ 4,071.

ETH / USDT 1 Day Chart

Regardless of the optimism around the $ 2,893 support level, a sudden increase in selling pressure that breaks this area to produce a lower low will invalidate the bullish thesis.

In this case, ETH could drop to $ 2,742 or $ 2,514 depending on the intensity of the bearish momentum.

Ripple price shows signs of reversal

The ripple price has established higher highs and lows since November 2020. The drawing of trend lines connecting these oscillation points shows the formation of an ascending parallel channel. On July 22, the price of XRP bounced off the lower trendline and rose about 161%. This climb broke through two of the three crucial resistance barriers and marked the midpoint of the channel at $ 1.31.

While impressive, the rally has since retraced 20% and is currently grappling with the $ 1.09 demand barrier and showing signs of resuming the uptrend.

If the $ 1.09 level does not hold, the XRP price could drop 12% to mark the next support level at $ 0.964, where buyers are likely to make a comeback.

The resulting rise should break the midpoint of the channel and take a hit at the $ 1.70 resistance barrier after rising 55%.

XRP / USDT 1 Day Chart

While assuming a resurgence of buyers around $ 1.09 or $ 0.964 is practical, investors should note that things will turn south if the bullish momentum does not manifest or if investors continue to make profits. Such a move that produces a convincing close below $ 0.964 will invalidate the bullish narrative.

In a very bearish case, this move could trigger a 20% crash at $ 0.77.

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