- Bitcoin price is approaching the $70,000 resistance level, and a solid close above this mark could start a bull run that retests the ATH.
- Ethereum price is approaching a downtrend line, and a close above it would signal further upside.
- Ripple price is consolidating near the 200-day EMA of $0.552. A higher close suggests a possible recovery.
Bitcoin (BTC) is approaching a resistance level around $70,000. A solid close above this mark could spark a rally that retests all-time highs. Ethereum (ETH) is approaching a downtrend line, with a breakout and close indicating a potential upside. Ripple (XRP) is also consolidating near key levels, and a break above the closing price would suggest a potential recovery.
If Bitcoin price closes above $70,000, it could spike to retest ATH
Bitcoin price broke through October 15th's psychological level of $66,000 and rose 2.7% before moving closer to its July 29th high of $70,079 on Monday.
If BTC closes above $70,079, the rally could extend and retest the all-time high of $73,777.
The Relative Strength Index (RSI) indicator on the daily chart is trading at 69, approaching the overbought level of 70. If the price enters this zone on a closing price basis, traders would be advised not to add to long positions. The pullback will be large. However, another possibility is that the rally continues and the RSI remains in the overbought zone.
BTC/USDT daily chart
However, if BTC fails to break out of the $70,079 level, BTC could fall and find support near the psychologically important $66,000 level.
If Ethereum price closes above the downtrend line, the price is poised to rise
After finding support near the 50-day exponential moving average (EMA) of $2,564 on October 15th, Ethereum price moved closer to the downtrend line (connected with multiple highs from the end of May) on Monday. are.
If ETH closes above the downtrend line near $2,820, it could first move higher and retest the daily resistance at $2,927. A close above $2,927 could extend the rally and retest weekly resistance at $3,236.
The RSI indicator on the daily chart is trading at 66, approaching the overbought level of 70. If the pair enters this zone on a closing price basis, traders would be advised not to increase their long positions as the probability of a pullback increases. However, another possibility is that the rally continues and the RSI remains in the overbought zone.
ETH/USDT daily chart
However, if ETH fails to close above the downtrend line, it may decline to retest the 50-EMA support at $2,564.
If Ripple price closes above the 200-day EMA, the price could rise
Ripple price has been hovering around the 200-day EMA of $0.552 for the past week. As of Monday, it was trading around $0.547, close to the 200-day EMA of $0.552.
If XRP closes above the 200-day EMA at $0.552, it could rise more than 13% and retest the next daily resistance at $0.626.
The RSI on the daily chart is hovering at 48, approaching the neutral level of 50, suggesting indecision among traders. For the bullish momentum to gain momentum, the RSI needs to trade above the neutral level.
XRP/USDT daily chart
On the other hand, if XRP price fails to close above the $0.552 level and closes below the daily resistance level of $0.544. This scenario could lead to a decline in Ripple price and retest the October 3rd low of $0.506.
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.
