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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.