- Bitcoin price has broken through the resistance level around $62,000 and is poised for further upside.
- Ethereum price is approaching a key resistance barrier around $2,500. If the topside is solid, it would suggest a rise in the future.
- Ripple price is approaching the resistance level around $0.554. If rejected, the downward trend may continue.n.
Bitcoin (BTC) has surged above a resistance wall, hinting at a possible rally, while Ethereum (ETH) is testing a key resistance level around $2,500, with its closing price pointing to further gains. Suggests. In contrast, Ripple (XRP) is approaching its resistance and a rejection here could lead to a continuation of the downtrend.
Bitcoin price breaks through resistance level and is poised for a rally
Bitcoin price retested and found support at the 200-day exponential moving average (EMA), around $60,000, on October 2nd. Over the next four days, the stock rose 3.5% and broke through the resistance level at $62,125. As of Monday, it was trading above $63,600.
If $62,125 holds as support, BTC could extend the rally and retest the $66,000 psychological level.
The Relative Strength Index (RSI) on the daily chart is trading at 56, above the neutral level of 50, indicating that the bulls are controlling the momentum.
BTC/USDT daily chart
However, if the $62,125 level fails, BTC could decline to retest the 200-day EMA level at $60,000.
If Ethereum price closes above the resistance wall, the price could rise
Ethereum price retries the daily resistance level around $2,461 on Monday. This level roughly coincides with the 50% price retracement level at $2,487 and the 50-day EMA near $2,557, making it a key resistance zone.
If ETH breaks out and closes above the $2,557 level, it could extend its rally to retest the August 25 high of $2,820.
The RSI is approaching the neutral level of 50, indicating indecision among traders. For Ethereum to sustain its rise, the RSI needs to continue rising above the neutral level.
ETH/USDT daily chart
On the other hand, if ETH fails to break out and closes below the daily resistance level of around $2,461, it could retest the September 6 low of $2,155.
Ripple bulls show weakness
Ripple price is below the 200-day EMA of approximately $0.554, and its daily support level was $0.544 on October 2nd. It also closed below the uptrend line. As of Monday, it was trading around $0.540, approaching a key resistance level.
If the 200-day EMA is around $0.554, the daily level is $0.544, and the uptrend line holds as resistance, XRP could fall and retest the September 6 low of $0.502.
The RSI indicator on the daily chart is also below the neutral level of 50, indicating bearish momentum and a continuation of the downtrend.
XRP/USDT daily chart
Conversely, if XRP breaks through the $0.554 level and closes, it could extend the rally to retest the next daily resistance at $0.626.
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.
