Bitcoin price was hovering around $95,700 on Wednesday. Technical indicators are showing weakness. Ethereum has support near the weekly level of $3,454, indicating a rally towards $4,000. Ripple price is hovering above the $2.55 level after rising more than 10% so far this week.
Bitcoin (BTC) hovered around $95,700 on Wednesday, hinting at potential weakness as technical indicators point to a decline, while Ethereum (ETH) and Ripple (XRP) hovered around key levels. It remains stable, suggesting the possibility of an increase after martial law is lifted in South Korea.
Bitcoin bulls are showing signs of slowing down
Bitcoin prices started the week down 1.38%, hitting a low of $93,578 on Tuesday, before rebounding to close above $95,800. As of this writing Wednesday, it is hovering around $95,700.
If BTC continues to fall, the correction could be extended to retest the $90,000 support level.
Momentum indicators support the Bitcoin correction theory. The Relative Strength Index (RSI) on the daily chart is at 62, but the overbought level of 70 has been rejected and it is trending downward, indicating weaker bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator also showed a bearish crossover, generating a sell signal. The MACD also shows a rising red histogram bar below the zero neutral line, suggesting that Bitcoin price may fall.
BTC/USDT daily chart
However, if BTC continues its upward momentum, it could reach an all-time high (ATH) level of $99,588.
Ethereum finds support near weekly levels and is poised for a rally
Ethereum price retested on Tuesday and found support near the weekly level of $3,454. As of Wednesday, it was trading just above $3,670.
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 66, above the neutral level of 50, indicating that the bullish momentum is gaining momentum, well below the overbought situation.
ETH/USDT daily chart
On the other hand, if ETH declines and closes below the $3,454 level, it could face a pullback that retests the $3,335 support level.
Ripple Bullseye is $3.00 mark
Ripple price soared more than 18% on Monday and extended its gains on Tuesday, reaching a six-year high of $2.90, before falling 7.8%. As of this writing Wednesday, it is trading slightly higher at around $2.55.
If XRP continues its upward trend, it could extend its rally to retest the psychologically important level of $3.00. However, the RSI is at 83, indicating overbought conditions 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 fails to maintain its upward momentum and faces a pullback, it could fall to retest the $1.96 support level.
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.
