After facing a healthy correction this week, Bitcoin price extended its recovery and approached the $100,000 level on Friday. Ethereum price closed above the weekly resistance level at $3,454, hinting at a rally ahead. Ripple price is supported near the $1.40 level, indicating that a rise is on the horizon.
After facing a healthy correction this week, Bitcoin (BTC) price extended its recovery and approached the $100,000 level on Friday. Ethereum (ETH) and Ripple (XRP) closed above key resistance levels, hinting at gains in the coming days.
Bitcoin recovers and approaches $100,000 milestone
Bitcoin price reached an all-time high (ATH) of $99,588 last week and began to fall. BTC fell 7% to a low of $90,791 on Tuesday. However, there was some improvement on Wednesday. The recovery continues as of Friday's writing, trading around $96,200.
If BTC continues its recovery, it could reach the ATH level of $99,588. The Relative Strength Index (RSI) indicator on the daily chart is at 67, above the neutral level of 50, indicating bullish momentum. However, traders should be cautious as the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover on Tuesday, indicating a sell signal.
BTC/USDT daily chart
If BTC fails to recover and continues to decline, the decline could widen to re-test the key psychological level of $90,000.
Ethereum Price Ends Above Weekly Resistance, Eyeing the $4,000 Milestone
On Wednesday, Ethereum price rose 9.8% to close above weekly resistance at $3,454. At the time of writing on Friday, it was trading slightly lower at around $3,560.
If $3,454 holds as support, ETH could rebound to retest the psychologically important $4,000 level.
On the daily chart, the RSI is at 66, above the neutral level of 50, indicating that bullish momentum is increasing and well below overbought conditions.
ETH/USDT daily chart
However, if ETH declines and closes below the $3,454 level, it could face a pullback that retests the $3,000 support level.
Ripple Poised for Rise Following Retest of $1.40 Support Level
Ripple price ended last week above weekly resistance at $1.40, but faced a pullback. It found support around this level on Tuesday and had risen 10.6% by Thursday. As of writing on Friday, it continues to trade high around $1.54.
If $1.40 continues to hold as support, XRP could continue to rise and retest the three-year high of $1.96 (April 2021).
However, the RSI is at 85, indicating an overbought situation and suggesting that the risk of a correction is increasing. A breakout of the RSI from overbought territory could signal a pullback.
XRP/USDT daily chart
If XRP closes below $1.40, the 50% price retracement level (from the April 2021 high of $1.96 to the June 2022 low of $0.28) will decline to retest $1.12. There is a possibility of expansion.
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. Stablecoins also allow investors to store value, as cryptocurrencies are generally volatile.
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.
