Bitcoin, Ethereum, Ripple Price Forecast: Bitcoin Expected to Decline by 19% in Dead-Cat Scenario

Bitcoin, Ethereum, and Ripple are currently displaying signs of modest recoveries, with each digital currency witnessing brief upward movements. However, these positive trends are expected to be short-lived as technical analysis and market conditions point towards the likelihood of broader downward trends for these assets in the near future.

Bitcoin’s price recently broke below the ascending trendline that originated from multiple swing lows starting on July 5. This led to a 12% decline over the subsequent three days. Despite this, Bitcoin found support at $49,917, rebounded with a 3.7% increase on Tuesday, and saw a slight recovery to trade 1.5% higher at $56,694 by Wednesday.

In the current scenario, Bitcoin might experience a dead-cat bounce, a temporary price increase within a broader downtrend. It could face resistance at the 61.8% Fibonacci retracement level of $62,066, which aligns with the broken trendline and the 100-day Exponential Moving Average at around $63,022, marking a critical reversal zone. Failure to surpass $62,066 could trigger a 19% decline back to retest the $49,917 daily support level.

Ethereum’s price closed below the daily support level of $2,927 on August 3, resulting in a 16.5% drop over the following two days. However, after testing the weekly support at $2,118, Ethereum rebounded with a 1.7% increase on Tuesday and continued its recovery, trading 1.8% higher at $2,505 by Wednesday.

If Ethereum’s price continues to recover, it may face rejection around the 50% retracement level at $2,843, which aligns with the daily resistance level at $2,927, making it a crucial reversal zone to monitor. Failure to surpass $2,843 could lead to a 25% decline, revisiting the weekly support at $2,118. The RSI and the Awesome Oscillator on the daily chart indicate an overall bearish trend.

Ripple’s price fell below the daily support level of $0.544 on August 4, resulting in a 6.7% drop on Monday. However, it rebounded with a 3.7% increase on Tuesday after testing support around $0.413. As of Wednesday, Ripple shows signs of recovery, trading 0.6% higher at $0.509.

In this context, Ripple may undergo a dead-cat bounce, possibly facing resistance at the previous daily support level of $0.544, which now aligns with the 200-day Exponential Moving Average at approximately $0.539, indicating a key reversal point. Failure to surpass $0.544 could result in a 25% decline, potentially revisiting the $0.413 weekly support level. The RSI and the AO on the daily chart suggest a predominantly bearish trend.

In summary, while these cryptocurrencies are currently experiencing temporary recoveries, the broader trend indicates a potential resumption of the downtrend in the coming days. Traders and investors should closely monitor key levels and indicators to navigate these volatile markets effectively.