Bitcoin risks falling further below $54,000

• Bitcoin price is hovering around the $54,000 support level. A firm close below this would indicate further decline.
• Ethereum price is facing resistance around $2,300 and a close below this level could extend the downtrend.
• Ripple price is approaching the $0.544 resistance. A rejection would indicate a continuation of the downtrend.

Bitcoin (BTC) continues to hover around the $54,000 support level. A firm close below this would signal further declines, while Ethereum (ETH) and Ripple (XRP) prices approach key resistance levels. A rejection would signal a continuation of the downtrend.

Bitcoin price is poised to fall if it closes below $54,000 support level

Bitcoin was rejected at $59,560, the 50% price retracement level, on September 2 (pulled from a high in late July to a low in early August) and fell 8.7% over the next four days. On Saturday, it found support around the $54,000 level and was trading slightly above $54,900 on Monday.

If BTC closes below the $54,000 level, the price could decline by 7% and retest the next daily support at $49,917.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) momentum indicators on the daily chart are trading below their respective neutral levels of 50 and zero respectively. Both indicators suggest weak momentum and a continuation of the downtrend.

BTC/USDT daily chart

However, the bearish thesis will be invalidated if Bitcoin price breaks above the $56,022 resistance. In this scenario, BTC could extend the positive move by 6% to revisit its 50% price retracement level at $59,560.

Ethereum price is about to drop if it stays below $2,300

Ethereum price is facing resistance at the $2,327 resistance level after dropping 12.37% last week. On Monday, the price is slightly up by 0.22% to $2,302.

If ETH continues to face resistance from the $2,327 level and the descending trendline (formed by the merging of multiple highs on August 24), the price could decline by 9% and retest the weekly level of $2,118.

The RSI and AO are trading below the neutral levels of 50 and zero on the daily chart. These momentum indicators signal a continuation of bearish dominance and an impending price decline on the horizon.

ETH/USDT daily chart

On the other hand, if ETH breaks above the $2,327 level and closes above the daily resistance at $2,421, it would invalidate the bearish thesis and it could rise 5.8% to retest its 61.8% Fibonacci retracement level at $2,564.

Ripple price is set for a downtrend as $0.544 acts as a resistance barrier

Ripple price broke below the 200-day EMA, hovering around $0.548 and the daily support level at $0.544 on Thursday. It dropped 4.3% on Friday. It recovered slightly over the weekend and as of Monday, it is trading at $0.529, approaching its resistance level of $0.544.

If XRP recovers, it could face resistance around the daily resistance level of $0.544. It could drop by 9.6% to retest the August 7 low of $0.492.

The RSI and AO of the daily chart are trading below the neutral levels of 50 and zero. These momentum indicators strongly indicate a bearish dominance.

XRP/USDT daily chart

However, if Ripple price closes above the daily resistance level of $0.544, the market structure will change by creating a higher high on the daily chart. This could lead to a 5% increase and a return to the high of $0.572 on September 3.