• Bitcoin price is nearing the previously broken lower consolidation boundary at $65,729, rejection suggests further correction ahead.
• Ethereum price rises 4% after finding support around the $1,800 level the previous day.
• XRP recovers slightly after retesting its weekly support at $1.30, though broader downside pressure remains intact.

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are posting a cautious recovery on Wednesday following a market correction earlier this week.  BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels. Despite the short-term bounce in the top three cryptocurrencies, traders should be cautious as technical indicators suggest downside risks remain intact.

Bitcoin tests breakdown zone

Bitcoin price broke and closed below the lower consolidation boundary at $65,729 on Monday and declined slightly, hitting a daily low of $62,510 the next day. As of writing on Wednesday, BTC is testing this breakdown zone.

If BTC fails to close above the $65,729 breakdown level on a daily basis, it could extend the decline toward the key support level at $60,000.

The Relative Strength Index (RSI) reads 36, rebounding from the oversold territory, indicating fading bearish momentum. The Moving Average Convergence Divergence (MACD) showed a bullish crossover that remains intact, suggesting a positive outlook. 

If BTC continues its recovery and closes above $65,729 on a daily basis, it could extend the advance toward the upper boundary of the mentioned consolidation range at $71,746.

Ethereum finds support around $1,800

Ethereum price corrected slightly during the previous week, extending its loss since mid-January. ETH continued its correction, falling 5.5% to test the key psychological level at $1,800 on Tuesday. As of writing on Wednesday, ETH is trading at $1,916.

If ETH continues its downward trend and closes below $1,800, it could extend the decline toward the lower consolidation range at $1,747. A firm close below this level could extend further losses toward the daily support at $1,669.

Like Bitcoin, Ethereum’s momentum indicators show mixed signals: the RSI indicates fading bearish momentum, while the MACD is showing a bullish crossover. 

However, if ETH recovers, it could extend the advance toward the upper consolidation range at $2,149.

XRP revisits its lower trendline boundary

XRP price closed below the lower trendline boundary of a falling wedge on Monday and declined slightly, nearing the weekly support at $1.30 the next day. As of Wednesday, XRP is recovering slightly, revisiting this broken trendline.

If XRP fails to find support around the trendline and corrects, it could extend the decline toward the weekly support at $1.30. A close below this level could extend the losses toward the February 6 low of $1.11.

Like Bitcoin and Ethereum, XRP’s momentum indicators also show mixed signals: the RSI indicates fading bearish momentum, while the MACD is showing a bullish crossover. 

Conversely, if the lower trendline boundary holds as support, it could extend the recovery toward the key psychological level at $1.50.