- Bitcoin’s support price is around $66,000, and a recovery is certain.
- Ethereum price is supported by an uptrend line. If the closing price is below, it indicates that there is a possibility of a decline in the future.
- Ripple price finds support near the $0.488 level. A solid close below would suggest a continuation of the downtrend.
Bitcoin (BTC) has found support near the key level of $66,000, suggesting a possible recovery. However, Ethereum (ETH) and Ripple (XRP) are showing signs of weakness and will continue to fall if they close below key support levels.
Bitcoin Shows Potential Upward After Finding Support Near $66,000
Bitcoin price found support around the $66,000 level on Friday and has since risen by 1.66% over the next two days. As of Monday, it was trading slightly lower at around $67,700.
If the $66,000 level holds as support, there is a possibility of a retrieval of the October 21 high of $69,519. If the price successfully closes above $70,000, the rally could widen to retest the all-time high of $73,777, which was already set in mid-March, as the next important barrier.
The Relative Strength Index (RSI) indicator on the daily chart is at 63, above the neutral level of 50, indicating bullish momentum is gaining momentum.
BTC/USDT daily chart
However, if BTC closes below the $66,000 support, it would fall 5.8% to the next support at $62,055, or the 61.8% Fibonacci retracement level (July high $70,079 to August low $49,072). (values up to USD) may be retested.
Ethereum finds support near the uptrend line
After facing resistance near the 200-day EMA at $2,778 on October 21st, Ethereum price found support at the uptrend line (a trendline connecting multiple low levels since early September) and then It fell by 11.87% in 5 days. As of Monday, it was trading slightly lower at around $2,490.
If ETH closes below the uptrend line near $2,419, the decline could widen by 11% and retest the September 6 low of $2,150.
The RSI indicator on the daily chart is 46, below the neutral level of 50, indicating increasing bearish momentum.
ETH/USDT daily chart
However, if ETH continues to find support near the uptrend line and closes above Friday’s high of $2,560, it could move higher to retest the 200-day EMA at $2.778.
If Ripple price closes below $0.488, it is ready to enter a downtrend
Ripple price faced resistance at the $0.550 level of the 200-day EMA on October 21st and fell 8.3% by Friday. It retested the August 6 low of $0.488 and rose slightly through Sunday. At the time of writing on Monday, it was trading slightly lower at around $0.514.
If XRP continues its decline and closes below $0.488, the decline could widen by 12% and retest the August 5 low of $0.431.
The RSI indicator on the daily chart is at 39, below the neutral level of 50, suggesting bearish momentum is gaining momentum.
XRP/USDT daily chart
If the $0.488 level holds as support, XRP will move higher to retest the 200-day EMA at $0.550.
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. Stablecoins also allow investors to store value, as cryptocurrencies are generally volatile.
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. A decline in BTC's dominance usually means investors are moving capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
