Bitcoin price hit a low of $90,500 before rebounding to $97,000 after hitting the $100,000 milestone the previous day. Ethereum price is above the weekly level of $3,454, suggesting a rally towards $4,000. Ripple price faces a rejection from the $3 mark, indicating more serious corrections to come.
Bitcoin (BTC) rebounded to $97,000 on Friday after falling precariously to $90,500 following the $100,000 milestone the previous day. Ethereum (ETH) maintains bullish momentum above key support levels, suggesting a potential rally towards $4,000. In contrast, Ripple (XRP) has shown a bearish trend, suggesting further decline.
Bitcoin shows signs of volatility after $100,000 milestone
Bitcoin prices soared past the six-digit price milestone, reaching a high of $104,088 before plummeting to an intraday low of $90,500, before rebounding to a low of $90,000 on Thursday. It closed at over $6,900. As of this writing Friday, it is hovering around $97,800.
The Relative Strength Index (RSI) on the daily chart is at 64, which has been rejected by the overbought level of 70, indicating weak bullish momentum.
If BTC continues to fall, the correction could be extended to retest the $90,000 support level.
BTC/USDT daily chart
However, if BTC continues its upward momentum, it could reach a new all-time high (ATH) level of $104,088.
Ethereum bulls focus on $4,000 level
Ethereum price retested on Tuesday and found support around the weekly level of $3,454. It rose 4.6% over the next two days. As of Friday, it was trading just above $3,870.
If the $3,454 level holds, ETH could extend the rally to retest the psychologically important $4,000 level.
The RSI indicator on the daily chart is at 70, above the neutral level of 50, indicating that the bullish momentum is gaining momentum.
ETH/USDT daily chart
Conversely, if ETH declines and closes below the $3,454 level, it could face a pullback that retests the $3,335 support level.
Ripple bulls are showing signs of fatigue
Ripple price soared more than 18% on Monday and further increased its gains on Tuesday, hitting a six-year high of $2.90. It then fell 17.6% by Thursday. As of this writing on Friday, it is trading slightly higher at around $2.31.
If XRP continues to decline, the decline could extend to retest the $1.96 support level.
Momentum indicators support ripple correction. The RSI is at 72, indicating overbought conditions and suggesting the risk of a correction is increasing. A breakout of the RSI from overbought territory could mean a pullback.
XRP/USDT daily chart
However, if XRP continues its recovery, the recovery could be extended to retest the psychologically important level of $3.00.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of one stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Also, since cryptocurrencies are generally volatile, stablecoins allow investors to store value.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC's dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. Decreasing BTC dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
