Bitcoin price ended below the $100,000 support level, hinting at further decline. Ethereum price ended below the weekly level of $3,522, indicating that a correction is near. Ripple price retests the $2.21 support level daily. If the price closes firmly below, the decline will continue.
Bitcoin (BTC) prices were trading below $98,000 on Friday after falling more than 6% this week. Ethereum (ETH) and Ripple (XRP) followed in the footsteps of BTC, closing below key supports and dropping 12% and 4.5%, respectively, this week.
This recent price drop has triggered a wave of liquidations across the crypto market. According to data from CoinGlass, this economic downturn has resulted in total liquidations of more than $1.17 billion in the past 24 hours, including more than $238 million in BTC, more than $220 million in ETH, and more than $47 million in XRP. It became.
Liquidation chart. Source: Coinglass
Bitcoin price is poised to fall as it closes below the $100,000 support level
Bitcoin price reached an all-time high of $108,353 on Tuesday, then fell 7.8% over the next two days, ending below the $100,000 support level. As of this writing Friday, it is hovering around $97,500.
If BTC continues to correct, it could extend the decline to retest the $90,000 support level.
The Relative Strength Index (RSI) on the daily chart is 49 points below the neutral level of 50 and is trending down, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) indicator also showed a bearish crossover on Wednesday, suggesting a downtrend.
BTC/USDT daily chart
However, if BTC recovers and closes above $100,000, the rally could extend to retest the all-time high (ATH) of $108,353.
Ethereum bears gain momentum
Ethereum price faced a rejection near the $4,000 level on Monday and then fell 14% over the next three days to close below the weekly level of $3,522. As of writing on Friday, it was trading at around $3,450.
If the $3,522 level holds as resistance and ETH closes below $3,335, it will extend the pullback to retest the next daily support at $3,029.
The RSI on the daily chart is 42 below the neutral level of 50 and is trending downward, indicating strong bearish momentum.
ETH/USDT daily chart
If ETH breaks and closes above the $3,522 level, the recovery could be extended to retest the $4,000 level.
Ripple bulls are showing signs of fatigue
Ripple price faced a pullback near the $2.66 level on Tuesday, falling 12.78% in the following two days. As of writing on Friday, the stock is trading around $2.33, rebounding from the daily support level of $2.21.
If XRP closes below the $2.21 support level, it could extend the decline to retest the next support level at $1.96.
On the daily chart, the RSI is at 57, negating Tuesday's overbought level of 70, suggesting signs of weakening bullish momentum. If the RSI falls below the neutral level of 50, it could indicate a sharp decline in Ripple price.
XRP/USDT daily chart
If XRP rises and closes above $2.66, the rally could extend 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 a 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.
