Bitcoin’s (BTC) price led the crypto market’s decline amid the bearish macro-financial market conditions. Ethereum (ETH) followed suit and fell to a multi-month low this week. Ripple (XRP) faced a similar fate, breaking through critical support and becoming oversold.
Bitcoin’s Price Below $60,000
Bitcoin’s price has been influenced by broader market trends, resulting in a sharp decline. Over the past few days, BTC has dropped from $61,500 to approximately $54,500 at its lowest this week. This is the first time the cryptocurrency has fallen below $55,000 since the end of February.
Although discouraging, this decline was anticipated by BeInCrypto towards the end of June. The double-top pattern suggests that BTC could potentially fall to $50,980, a level that is now within reach.
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Should Bitcoin’s price reach $50,980, it would represent a 17% decline from the neckline at $61,483. A bounceback would warrant reclaiming $55,000 as the support floor, and breaching $58,800 would invalidate the bearish thesis.
Ethereum (ETH) Loses Recent Gains
Ethereum’s price dropped 14% over the last couple of days, falling from $3,450 to $2,921 at the time of writing. ETH also lost the critical support of $3,000, nearly reaching $2,800 during the intra-day low.
This drawdown resulted in the second-generation cryptocurrency losing all the gains it noted during the mid-May rally when ETH validated the descending wedge pattern. Although a further drop in price is not expected for ETH, the altcoin will likely hover within the 23.6% and 38.2% Fibonacci Retracement lines.
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Breaching the latter will take some time, but that would confirm recovery. Reclaiming $3,500 as support would completely invalidate any potential additional losses.
Ripple (XRP) Is Oversold
XRP price is no exception as the altcoin also witnessed a 14% drawdown resulting in losing $0.45 as a support floor. As the crypto asset hit lows of $0.41, the bearishness peaked and likely saturated as well.
This is visible in the Relative Strength Index (RS) slipping into the oversold zone. The RSI is a momentum oscillator that measures the speed and change of price movements. Traders typically use it to identify overbought or oversold conditions in a market.
Oversold conditions are synonymous with recoveries since losses are at their highest, preventing further selling.
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This signals a potential bounce back for XRP, which will likely reclaim $0.42 as support over the weekend. However, the bearish trend would be invalidated only if the altcoin rises above $0.46 again.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
