The crypto market was hit by the rise in US CPI data, adding to the volatility of an already volatile market. Despite being the standard-bearer for decentralization, Bitcoin's close ties to the US market caused its price to plummet this week.
After a 4% plunge overnight, Bitcoin price ended the day at $67,150, recovering from a low of $65,320. The fall of the market leader has sent bearish ripples through the altcoin sector.
According to Coinglass data, this Friday's wave of selling wiped out $784 million in long-term liquidations.
So, will Bitcoin, Ethereum, and XRP price trends take a nosedive next week as bearish momentum builds? Or will rising expectations surrounding the Bitcoin halving cause a bullish run like a phoenix from the ashes? Will I start?
Is $100,000 just a pipe dream for Bitcoin?
As the entire market panics, the BTC price chart shows a huge bearish candlestick emanating from the overhead trendline. This pullback tests the 50D EMA and indicates a small correction within the bullish flag.
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Furthermore, despite the decline, Bitcoin has maintained above the 23.60% Fibonacci level, indicating lower price rejection. Therefore, the potential demand for Bitcoin remains significant.
Therefore, the likelihood of a bullish surge is increasing as Bitcoin halving day approaches. This surge could cause BTC price to trigger a flag pattern breakout rally, prolonging the general uptrend.
According to price levels and psychological barriers, the largest cryptocurrencies could reach the $100,000 level. However, in the short term, a bullish surge could push BTC price to $76,000 next week.
Stress on Ethereum, tensions rise above $3,000 level
As Bitcoin prices are undergoing a correction, the biggest altcoins are also sharing the heat of increased supply in the market. However, Ethereum price remains above the psychological mark of $3,000 and is expected to reject any decline in price in the long term.
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A lower price rejection indicates similar underlying demand for Bitcoin, increasing the likelihood of a reversal. However, the 7.50% drop overnight ended ETH price below the broken resistance trend line of the ascending channel.
This calls into question the possibility of a reversal. Nevertheless, the RSI divergence in the ETH price trend increases the possibility of a reversal.
Moreover, according to trend-based Fibonacci levels, ETH price could reach the $4,000 mark as a new breakout attempt.
Will the sleeping giant wake up in April?
With the supply of Bitcoin and Ethereum being massively reduced, altcoins like Ripple have no choice but to face a similar fate. The price of the XRP token loses 10% of its market value, falling to $0.54.
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This decline is testing the bulls' dominance of the rising support trend line that has been in place since early 2023. Moreover, dynamic resistance on the weekly timeframe has failed to provide significant momentum for a reversal.
Nevertheless, the RSI divergence, coupled with the rejection of the baseline lows, suggests a stronger rebound. If the long-awaited altcoin season arrives with the Bitcoin halving, altcoins could soar this week and break out of the triangle.
According to trend-based Fibonacci levels, the $0.8966 level is a good target for a triangle breakout rally.
What will happen to the prices of Bitcoin, Ethereum, and XRP?
Despite overnight declines, Bitcoin and altcoins are bracing for a rebound next week. Falling prices, a prevailing uptrend, and an upcoming halving could push the market to new heights. Therefore, a decline presents an opportunity to buy blue-chip cryptocurrencies at a discount.
