The cryptocurrency market is broadly correcting on Wednesday following modest early-week gains that pushed Bitcoin (BTC) to highs around $76,000. Although the ceasefire between the United States (US) and Iran continues to hold, the US blockade in the Strait of Hormuz is weighing on global Oil and Gas supplies.
Altcoins, including Ethereum (ETH) and Ripple (XRP), are showing technical weakness and are at risk of further correction. Ethereum holds above the $2,300 support while major moving averages cap its recovery potential. Meanwhile, XRP hovers around $1.35 amid a deteriorating technical structure.
Trump hints at US-Iran peace talks resuming
US President Donald Trump said on Tuesday that peace negotiations with Iran could resume this week despite the blockade in the Strait of Hormuz and the failed talks in Pakistan over the weekend.
US Vice President J.D Vance said on Sunday that Iran did not make an affirmative commitment not to seek a nuclear weapon, collapsing the peace talks. Iranian officials who attended the talks said that the US had not gained the regime’s trust.
The US Navy continues its blockage of the Straight of Hormuz, with ships from Iranian ports forced to suspend their journeys. Global Oil and Gas supplies remain pressured amid fears that inflation could escalate and slow economic growth.
Despite the sentiment across the crypto market remaining in extreme fear territory with a reading of 23 on Wednesday, it has improved from 21 the previous day. The general increase in investor risk appetite pushed BTC to highs around $76,000, but the Crypto King lacks follow-through momentum to sustain the recovery toward the $80,000 threshold.
Crypto Today: Bitcoin struggles to retain gains amid selling pressure
Bitcoin trades around $73,847, keeping a mildly bullish near-term bias as it holds above the 50-day Exponential Moving Average (EMA) around $71,117 and the broken descending trendline now offering support near $72,888. On the other side, the price sits below a dense confluence of medium-term resistance, with the 38.2% Fibonacci retracement from the January 14 high to the February 6 low at roughly $74,684 and the 100-day EMA at $75,263 capping the topside for now.
Still, a positive Moving Average Convergence Divergence (MACD) reading on the daily chart and a Relative Strength Index (RSI) just under 60 hint that upside momentum remains constructive without yet being overbought.
On the downside, Bitcoin’s immediate support lies at the recent breakout area around $72,888, ahead of the 50-day EMA at $71,117, while a deeper pullback would target the 23.6% Fibonacci retracement near $69,231 as a more solid demand zone. On the topside, a clear daily close above the $74,684 Fibonacci barrier would expose the 100-day EMA at $75,263, with further bullish extension targeting the 50% retracement near $79,091.
Altcoins technical outlook: Ethereum and XRP at risk of further correction
Ethereum trades at $2,322, keeping a constrained tone as it holds above the 50-day EMA at $2,182 but remains below the 100-day EMA at $2,356 and the 200-day EMA at $2,660. This configuration suggests that, while the broader trend remains pressured by overhead averages, the short-term structure is underpinned by the reclaimed 50-day EMA.
Momentum readings are constructive, with the RSI hovering around 60 on the daily chart and the MACD firmly above zero with a positive histogram, hinting that buyers retain the initiative but still need to clear key resistance to sustain the early-week momentum for further upside.
On the topside, immediate resistance aligns first with the 100-day EMA at $2,356, followed closely by the 38.2% Fibonacci retracement, drawn from the January 14 high to the February 6 low, at $2,374, forming a nearby supply zone that bulls must overcome to extend the advance. Beyond that, additional hurdles emerge at the 50% retracement at $2,570 and the 200-day EMA at $2,660. On the downside, initial support is seen at the 50-day EMA near $2,182, with a deeper cushion provided by the 23.6% Fibonacci retracement at $2,131. A sustained break below this area would weaken the constructive short-term tone and expose a more decisive correction.
XRP, on the other hand, trades roughly at $1.35, maintaining a capped tone as it holds below the 50-day, 100-day, and 200-day EMAs at $1.40, $1.55, and $1.81, respectively. The MACD histogram is marginally positive on the daily chart, and the indicator remains above zero, hinting at mild bullish momentum. Nonetheless, the RSI around 49 underscores a lack of directional conviction, as price action remains constrained under this stacked overhead supply.
On the topside, XRP’s initial resistance lies at the 50-day EMA near $1.40, with further barriers at the 100-day EMA around $1.55 and the descending trendline reference near $1.72, ahead of the more distant 200-day EMA at $1.81. On the downside, an upward-sloping trendline break level around $1.29 offers the first notable layer of support, and a daily close beneath this area would likely expose XRP to deeper retracements despite the presently constructive, but fragile, momentum backdrop.
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.
(The technical analysis of this story was written with the help of an AI tool.)