- Bitcoin finds support at around $66,000, with recovery on the cards.
- Ethereum price finds support at the ascending trendline; a close below indicates a possible decline ahead.
- Ripple price finds support around the $0.488 level; a firm close below would suggest a continuation of its downtrend.
Bitcoin (BTC) found support around its crucial level of $66,000, suggesting a potential recovery. However, Ethereum (ETH) and Ripple (XRP) show signs of weakness, and a close below their key support levels would continue their ongoing decline.
Bitcoin shows potential for a rally after finding support around $66,000
Bitcoin price found support at around $66,000 level on Friday and rose 1.66% in the next two days. As of Monday, it trades slightly down at around $67,700.
If the $66,000 level continues to hold as support, it could rally to reclaim its October 21 high of $69,519. A successful break and close above $70,000 could extend the rally to retest its next key barrier, which is already the all-time high of $73,777 in mid-March.
The Relative Strength Index (RSI) indicator on the daily chart reads 63, above its neutral level of 50, indicating the bullish momentum is gaining traction.
BTC/USDT daily chart
However, if BTC breaks and closes below $66,000 support, it could decline 5.8% to retest its next support at $62,055, its 61.8% Fibonacci retracement level (drawn from July’s high of $70,079 to August’s low of $49,072).
Ethereum finds support around the ascending trendline
Ethereum price finds support at the ascending trendline (drawn from joining multiple low levels with a trendline since early September) after it faced resistance around the 200-day EMA at $2,778 on October 21 and declined 11.87% in the next five days. As of Monday, it trades slightly down at around $2,490.
If ETH breaks and closes below the ascending trendline around $2,419, it could extend the decline by 11% to retest its September 6 low of $2,150.
The RSI indicator on the daily chart reads 46, below its neutral level of 50, indicating increasing bearish momentum.
ETH/USDT daily chart
However, if ETH continues to find support around the ascending trendline and closes above Friday’s high of $2,560, it could rally to retest its 200-day EMA at $2.778.
Ripple price is poised for a downtrend if it closes below $0.488
Ripple price faced resistance from its 200-day EMA at the $0.550 level on October 21 and declined 8.3% until Friday. It retested its August 6 low of $0.488 and bounced slightly higher until Sunday. At the time of writing on Monday, it trades slightly lower, around $0.514.
If XRP continues its decline and closes below $0.488, it could extend the decline by 12% to retest its August 5 low of $0.431.
The RSI indicator on the daily chart is at 39, below its neutral level of 50, suggesting that bearish momentum is gaining traction.
XRP/USDT daily chart
If the $0.488 level holds as support, XRP will rise to retest its 200-day EMA at $0.550.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.