- Bitcoin price is facing resistance near the key level of $66,000. If the price closes above this level, the rally may continue.
- Ethereum price has found support near the 50-day EMA level of approximately $2,600, and is looking ahead to a rise.
- Ripple price has broken out of the consolidation zone between the key levels of $0.560 and $0.613, suggesting a rise on the horizon.
Bitcoin (BTC) is at a key resistance point, and a close above this level could signal further upside. At the same time, Ethereum (ETH) and Ripple (XRP) are gaining momentum as they establish support and break through key levels, hinting at the potential for further upside.
Bitcoin Poised to Rise Above $66,000
Bitcoin price broke above the consolidation zone between $62,000 and $64,700 on Thursday, rising 1% over the next two days. However, it faced a rejection near the psychological level of $66,000 on Saturday and fell slightly the next day. As of this writing on Monday, the stock continues to decline around $64,500.
If BTC closes above the $66,000 level, it could rise by 6% and retest the July 29 high of $70,079.
The Relative Strength Index (RSI) on the daily chart has declined slightly and is currently trading on the downside at 59, indicating that the bullish momentum is slowing. For Bitcoin to continue rising, the RSI needs to rise above the current trading level. However, traders should be cautious if the price breaks above the overbought level of 70.
BTC/USDT daily chart
However, if BTC closes below the security zone around $62,000, the decline could widen by 7% and retest the September 17 low of $57,610.
Ethereum Gains Support at Major Levels, Looks to Possible Rise in the Future
Ethereum price on Monday was trading near its 50-day exponential moving average (EMA) of $2,601. It broke above the downtrend line and found support on September 19, leading to an 11% rally.
If the 50-day EMA support at $2,601 holds, ETH could continue rising from the current trading level of $2,625 and retest the August 24 high of $2,820.
The RSI on the daily chart is declining around the 55 level, reflecting the decline in bullish momentum. For a bull market to sustain, the RSI needs to rise above 60, which generally indicates bulls are gaining momentum.
ETH/USDT daily chart
However, if the 50-day EMA fails to hold and Ethereum price declines and closes below the daily support level of $2,461, it could fall further and retest the September 6 low of $2,152. .
If Ripple price closes above the resistance barrier, the price may rise
Ripple price broke through the consolidation zone between key levels $0.560 and $0.613 on Sunday, rising 4.5%. It also retested the July 31 high of $0.658, but was unable to close above it. It was trading just above $0.645 on Monday.
If Ripple price closes above the $0.658 level, it could rise by 11% and retest the March 12 high of $0.732.
The RSI is approaching the overbought level of 70. If the price enters this zone on a closing price basis, there is a high probability that the price will fall. Another possibility is that the rally continues and the RSI rises further into overbought territory.
XRP/USDT daily chart
However, if Ripple price closes below the consolidation zone around $0.613, it could continue and extend its decline and retest the consolidation floor at $0.560.
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.
