- Bitcoin and gold are correcting from overbought territory.
- Fundamental factors are still positive for the cryptocurrency.
- Ripple regains ground after a short-lived correction.
The cryptocurrency market stalled after a short-lived recovery attempt on Wednesday. Bitcoin retreated from the intraday high of $11,355 and touched the area below $11 000. Altcoins are also in decline amid technical correction. Gold also hit the pause button after a nine-day rally as investors analyzed the outcome of the FED’s meeting and weighed comments from the FED’s governor about economic uncertainties.
The central bank left the rates near zero and promised to support the recovery whatever it takes, while Jerome Powell called the most severe “in our lifetime.” Despite the gloomy expectations, traders and investors used the promise to support the economy as a pretext for a technical correction on the overbought markets.
Gold and silver were both grossly overbought and arguably still are. News items at the moment are unlikely to make much short-term difference as these metals have developed independent momentum of their own and need to shake off some of the excesses,” Rhona O’Connell, head of market analysis for EMEA and Asia regions at StoneX Group Inc. commented as cited by Bloomberg.
ETH/BTC Daily Chart
ETH/BTC stopped the four-day sell-off and regained ground after the sell-off to $0.02850. At the time of writing, the cross is changing hands at $0.02910 unchanged on a day-to-day basis. The psychological $0.0300 serves as a local resistance that needs to be taken out before the price can extend the recovery to $0.03100 reinforced by the upper line of the daily Bollinger Band. The move above those barriers will cancel the bearish scenario and increase the upside momentum. The local support is created by the middle line of the daily Bollinger Band on approach to $0.02740. It is followed by the 100-week Simple Moving Average at $0.02650.
Above the current price, the first resistance level is at 0.03000, then the second at 0.03100 and the third one at 0.0320.
Below the current price, the first support level is at 0.02730, then the second at 0.0260 and the third one at 0.02500.
BTC/USD Daily Chart
BTC/USD is currently trading at $10,976. The first digital asset has been hovering around $11,000 after several numerous attempts to develop a rally towards the recent high of $11,414. This barrier may serve as a strong resistance, that separates the price from a strong move to the next psychological target of, $12,000. If it is broken, the upside momentum will start gaining traction and the market may become really violent. Meanwhile, the RSI on a daily chart reversed to the downside, which implies that the price may be vulnerable to further correction. BTC/USD has stayed mostly unchanged since this time on Wednesday and lost 1.3% on a day-to-day basis. The next local support comes at $10,800. Once it is out of the way, the sell-off is likely to gain traction with the next focus $10,500.
Above the current price, the first resistance level is at $11,400, then the second at $12,000 and the third one at $12,500.
Below the current price, the first support level is at $10,800, then the second at $10,500 and the third one at $10,000.
ETH/USD Daily Chart
ETH/USD is currently trading at $318.70. The second-largest digital asset has entered the range-bound phase after a sharp rally to $334 on Monday, July 27. The coin touched the intraday low of $314.46 and attempted a recovery above $320.00. ETH/USD stays inside the daily Bollinger Band, while its upper line of this channel serves as a local resistance. On the downside, the critical support is created by psychological $300.00
Above the current price, the first resistance level is at $330, then the second at $350 and the third one at $400.
Below the current price, the first support level is at $300, then the second at $260 and the third one at $242.
XRP/USD Daily Chart
XRP/USD hit the intraday low at $0.2347 and recovered to $0.2449 by press time. The coin is the biggest winner of the day out of top-5 with over 2.5% of gains in the recent 24 hours. The upside momentum may gain traction with the next focus on psychological $0.2500 that coincides with Wednesday’s high.
Above the current price, the first resistance level is at $0.2500, then the second at $0.2600 and the third one at $0.2700.
Below the current price, the first level of support is at $0.2400, then the second at $0.2260 and the third one at $0.2200.