Bitcoin Indicates Weakness

• Bitcoin teeters around critical $62,000 support, with potential for a further decline on the horizon.
• Ethereum encounters a barrier at $2,461 resistance, pointing towards bearish tendencies.
• Ripple’s price approaches key resistance at $0.554, with a potential fall if rejected.

Bitcoin (BTC) is showing signs of weakness as it hovers near a pivotal support level. A dip below this level could indicate a bearish trend is imminent. Meanwhile, Ethereum (ETH) and Ripple (XRP) are nearing crucial resistance points, and a rejection could signify a move towards bearish momentum.

Bitcoin’s Potential Downtrend: $62,000 is Key

Bitcoin found support at the 200-day Exponential Moving Average (EMA) of approximately $60,000 on October 2nd. Over the next four days, it gained 3.5%, breaking past the $62,125 resistance. As of mid-week, Bitcoin trades just above $62,000. Notably, if Bitcoin falls past the $62,125 support, it may continue declining to revisit its 200-day EMA of $60,030.

Currently, the Relative Strength Index (RSI) is near its neutral mark at 50. This lack of momentum suggests trader indecision. A fall below this neutral point could imply waning strength, leading to a potential drop in Bitcoin’s price.

BTC/USDT daily chart

Conversely, if the $62,125 level holds, Bitcoin might target the psychological milestone of $66,000.

Ethereum Faces Resistance Amid Weakness

Ethereum’s price hit a wall at the $2,461 resistance on Monday. This point aligns closely with the 50% price retracement level at $2,487 and the 50-day EMA at $2,546, forming a significant resistance zone. Presently, Ethereum trades around $2,400, approaching this resistance.

If the $2,461 resistance remains intact, Ethereum may drop by 12% from its current value, aiming to retest its low from September 6 at $2,155. The RSI on the daily chart reads 46, below the neutral level, indicating ongoing weakness and a decline trajectory.

ETH/USDT daily chart

However, if Ethereum breaks past the $2,461 resistance and closes above the 50-day EMA at $2,546, it may rise to challenge the August 25 high of $2,820.

Ripple and Its Looming Downtrend

Ripple is nearing its previously broken ascending trendline, drawn from several lows since early July. This trendline aligns with two key resistance levels: the 200-day EMA at $0.554 and the daily mark at $0.544. Currently, Ripple trades below these, around $0.532.

If the 200-day EMA at $0.554 acts as a barrier, Ripple may fall 19% from its current position, aiming to retest the August 5 low of $0.431. The RSI on the daily chart also resides below the neutral 50-mark, highlighting continued bearish tendencies.

XRP/USDT daily chart

If Ripple breaks and holds above the 200-day EMA at $0.554, it could see a 13% rise to retest the next resistance at $0.626.

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