Bitcoin Poised for a Rally if It Breaks Above $66,000
Bitcoin (BTC) is facing a significant challenge at the $66,000 resistance level. Recently, Bitcoin climbed above a consolidation range of $62,000 to $64,700, marking a modest 1% increase over two days. However, the momentum stalled as it reached the psychological barrier of $66,000 on Saturday, leading to a slight pullback. As of Monday, Bitcoin is trading around $64,500.
To resume its upward trajectory, Bitcoin needs to break and close above $66,000, which could lead to a 6% rally, targeting the July 29 high of $70,079. However, the **Relative Strength Index (RSI)**—a tool used to assess the strength of an asset’s price movements—has declined slightly, indicating weakened bullish momentum. Currently, the RSI is at 59; a rise above this level would be necessary for Bitcoin to maintain its rally. Investors should watch for an RSI over 70, which indicates an overbought condition and could signal a potential reversal.
On the downside, a break below $62,000 could result in a further 7% decline, potentially revisiting the September 17 low of $57,610.
Ethereum Finds Support at Key Level, Eyeing Potential Rally
Ethereum (ETH) is currently trading near its 50-day Exponential Moving Average (EMA), around $2,601. The EMA is a commonly used indicator to identify the trend direction, and finding support here is a positive sign for Ethereum. Following a breakout above its descending trendline on September 19, Ethereum experienced an 11% increase.
For the rally to continue, support at the 50-day EMA must hold, potentially pushing ETH from its current level of $2,625 to retest the August 24 high of $2,820. The daily chart's RSI is around 55, showing a decrease in bullish momentum. An RSI above 60 would suggest growing strength among buyers.
If the 50-day EMA support fails, Ethereum could decline, breaking below the $2,461 daily support and potentially revisiting its September 6 low of $2,152.
Ripple Price Eyes a Rally if It Closes Above Resistance
Ripple (XRP) has stepped out of its consolidation range between $0.560 and $0.613, rallying by 4.5% to retest its July 31 high of $0.658. Currently, it trades slightly above $0.645.
The next target for Ripple is a close above $0.658, which could spur an 11% rally toward the March 12 high of $0.732. However, the RSI is approaching the overbought threshold of 70, posing a risk of a price pullback if it enters this zone. Alternatively, the rally could continue if the RSI climbs further into overbought territory.
Conversely, if Ripple’s price falls below $0.613, it might reverse and decline to test the lower consolidation boundary at $0.560.
