Bitcoin (BTC) price is hovering around $102,000 at the time of writing on Friday after losing over 7% so far this week, as bearish sentiment continues to weigh on the broader crypto market. Meanwhile, Ethereum (ETH) finds support around a key level, while Ripple (XRP) faces rejection from crucial resistance, both hinting at a possible consolidation phase before its next directional move.
Bitcoin could recover if the $100,300 level holds
Bitcoin price faced rejection around its previously broken trendline on Monday and declined 8.18% until the next day, retesting the 50% retracement level at $100,353. However, on Wednesday, BTC rebounded 2.35% after finding support near the $100,353 level, though much of those gains were erased the following day. At the time of writing on Friday, BTC hovers at around $102,200.
If the 50% retracement level at $100,353 continues to hold as support, BTC could extend its recovery toward the next key resistance level at $106,435.
The Relative Strength Index (RSI) is 36, hovering slightly above the oversold territory, suggesting that selling momentum may be easing and that a potential short-term rebound could be on the horizon.
On the other hand, if BTC closes below the $100,353 support level, it could extend the decline toward the next daily support at $97,460.
Ethereum could rebound after retesting key support at $3,171
Ethereum price faced rejection from the 100-day EMA at $3,906 on Monday, then declined by 15.73% the next day and retested the 50% retracement level at $3,171. On Wednesday, ETH staged a mild rebound but ran into rejection near the previously broken trendline the following day. At the time of writing on Friday, ETH hovers at around $3,300.
If the $3,171 continues to hold as support, ETH could extend the recovery toward the 61.8% Fibonacci retracement level at $3,593.
The Relative Strength Index (RSI) is 34 and rising after retesting oversold territory, suggesting that selling momentum may be easing and a potential short-term rebound could be on the horizon.
However, if ETH closes below $3,171, it could extend the decline toward the next daily support at $3,017.
XRP could recover if it closes above the $2.35 resistance level
XRP price started the week on a negative note, declining by more than 12% through Tuesday after being rejected around the 50-day EMA at $2.58 on Monday. XRP recovered slightly on Wednesday but was rejected at the daily resistance level at $2.35 the next day. At the time of writing on Friday, XRP hovers at around $2.22.
If XRP recovers and closes above the daily resistance at $2.35, it could extend the recovery toward the 50-day EMA at $2.58.
Like Bitcoin and Ethereum, XRP RSI indicates that selling momentum is starting to ease, suggesting a potential short-term rebound may be on the horizon.
However, if the $2.35 level continues to hold as resistance, XRP could extend the decline toward the next daily support at $1.96.
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.