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Bitcoin (BTC) price is trading without directional bias, just sliding horizontally after the late August dip. With it, Ethereum (ETH) and Ripple (XRP) prices also show a lack of momentum, which could bode poorly for investors as markets tend not to hold out for so long.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Bitcoin price readies for a fall
Bitcoin (BTC) price is treading on dangerous grounds, exhausting the $24,995 support level after a longstanding consolidation. Unless the king of crypto finds its footing, it could soon lose the aforementioned support, and descend to the psychological $24,000 level. In the dire case, expect an extended hobble to the demand zone at $21,915, where some buying activity could finally present. This assumption comes as demand zones are often populated by buyers.
Notably, the Relative Strength Index (RSI) is inclined south and could soon cross below the signal line (yellow band). Such a move is often interpreted as a sell signal. Also notable, the histogram bars of the Awesome Oscillator are negative, suggesting bears have the upper hand.
BTC/USDT 1-day chart
On the flipside, with the $24,995 support level acting as a buyer congestion zone, bullish momentum above this level could send Bitcoin price north, potentially confronting the 200-, 50-, and 100-day Exponential Moving Averages (EMA) at $27,085, $27,830, and $27,522 levels respectively, before the $29,692 resistance is activated.
While overcoming this barricade would be ideal, Bitcoin price would remain in the woods until after a decisive daily candlestick close above the $31,518 level.
Also Read: Bitcoin set to form death cross as Dollar Index teases Golden crossover.
Ethereum price could fall if the RSI divergence fails
Ethereum (ETH) price is inclined towards the downside, recording lower lows as the price tests the $1,621 support level. Meanwhile, the RSI is recording higher highs, with the disparity presenting a bullish divergence. This forecasts a possible move north, but it all depends on whether the $1,621 support level holds. If it does not, ETH could fall 5% to the $1,552 support level. The negative AO adds credence to the bearish outlook.
ETH/USDT 1-day chart
Conversely, if the bullish divergence works out, Ethereum price could pull north, past the $1,701 hurdle before confronting the 50-, 200- and 100-day EMA at $1,741, $1,765, and $1,778, respectively. The $1,841 could be overcome in highly ambitious cases, but the bearish outlook would only be invalidated once the PoS token makes it above the $2,008 level.
Also Read: Ethereum whales accumulate ETH as researchers explore scaling beyond EIP-4844.
Ripple price bulls are not acting
Ripple (XRP) continues to stagnate despite swimming in a demand zone, suggesting bulls are sitting on their hands. This exposes XRP to a slump, possibly sending it below the critical support at $0.4800, which is the mean threshold of the order block. A decisive break below this level would whiplash any short-term hope of a bullish case, with the price possibly breaking below the lower base of the demand zone at $0.4600.
In a dire case, Ripple price could extend to the August 17 intraday low of $0.4191, marking a 15% drop below current levels. The RSI is also heading down, pointing to falling momentum.
XRP/USDT 1-day chart
On the flipside, the AO histograms are edging toward the midline with consistently green bars, showing that bulls maintain a presence in the market. Increased activity from this cohort of traders could send XRP up, flipping the 200-day EMA hurdle into support and potentially using it as a jumping-off point for more gains. In such a case, the $0.5040 would be the level to beat, considering it is where the 100- and 50-day EMA converge at $0.5567 and $0.5624 levels, respectively.
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