BTC, ETH, and XRP collectively fell below key support levels! Analyst: "This is a precursor to a significant retracement"

The crypto assets market has started to show obvious signs of weakness this week, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) facing severe technical pressure. As key support levels are successively broken, investors need to be wary of a potentially larger adjustment coming. Technical indicators consistently point to increased downside risk, and market sentiment is rapidly shifting towards caution.

Bitcoin Dangerous at the Edge of a Cliff: 50-Day Moving Average as the Last Line of Defense

(Source: Trading View)

Bitcoin has shown weakness again in trading on September 22 after a slight pullback of 0.3% last week. Currently, BTC is testing its key 50-day Exponential Moving Average (EMA) support level at $114,002, which is regarded as the last line of defense for the bulls.

Technical analysis shows that if Bitcoin's daily closing price falls below this key support level, it could trigger a larger-scale sell-off, with the next target support level being $107,245, which implies a potential further decline of about 6%.

The daily chart technical indicators have issued a clear warning: the Relative Strength Index (RSI) has fallen below the neutral level of 50, indicating that sellers are gaining control; at the same time, the Moving Average Convergence Divergence (MACD) is about to form a bearish crossover, which is typically a precursor to further declines.

However, if Bitcoin can stabilize at the current level, it may challenge the resistance level of $116,000 again. Investors should closely monitor today's closing situation, as it will determine the short-term trend direction.

Ethereum breaks below $4,300: technical structure has been damaged

(Source: Trading View)

The situation for Ethereum is more severe, having closed below the key support level of $4,488 last Friday, and further dropping 3.43% to around $4,293 on September 22, with the technical structure clearly deteriorating.

ETH is currently approaching the next important support level of $4,232. If this level is also breached, it may trigger a larger scale adjustment, with a target price of $3,593, which would represent a significant decline.

The daily chart RSI indicator has dropped to 43, well below the neutral level of 50, indicating that selling pressure continues to strengthen. More concerning is that the MACD formed a bearish crossover last Friday, issuing a clear sell signal, which usually signals the beginning of a medium-term downtrend.

Market analysts point out that Ethereum has recently performed weaker than Bitcoin, and this relative weakness is often a precursor to further adjustments in the overall market. Investors should consider reducing their positions during rebounds or setting strict stop-loss levels.

XRP breaks below the 50-day moving average: increased risk of correction

(Source: Trading View)

After falling nearly 2% last week, XRP continued to weaken on September 22, closing below the 50-day moving average with a trading price of about $2.90. The deterioration of this technical pattern indicates that XRP may face further corrections.

If the downtrend continues, XRP's next support level is at $2.72, which is a key price point that investors need to keep a close eye on.

Similar to Ethereum, the technical indicators for XRP also show bearish signals, with both RSI and MACD supporting the view that it may continue to decline in the short term. The consistency of this technical pattern increases the likelihood of further pullbacks.

However, if XRP can stabilize and rebound, it may challenge the resistance level of 3.40 USD again. However, under the current technical formation, the likelihood of this scenario is low.

Market Overview and Investment Strategy

The technical patterns of the three major mainstream crypto assets are consistently weakening, which is usually a signal that the overall market may face a larger adjustment. Factors contributing to this situation include:

· Profit-taking after the Federal Reserve's interest rate cut

· Macroeconomic data is below expectations

· Institutional investors reduce holdings in risk assets

· Demand for technical overbought correction

For investors, the current market environment suggests adopting a more cautious strategy:

· Set strict stop-loss positions to protect existing profits

· Avoid entering the market fully at the current level

· Consider a staggered accumulation strategy, reserving funds to cope with potential further declines.

· Keep a close eye on macroeconomic data and changes in market sentiment.

This week will be a key period for determining the short-term direction of the market. Investors should remain vigilant and be prepared for greater volatility.