- Bitcoin price closed above the $66,000 resistance level and is looking ahead to the upside.
- Ethereum price has rebounded from the support level at $2,542, indicating potential for further upside.
- Ripple price is approaching the 200-day EMA of $0.553. A higher close suggests a possible recovery.
Bitcoin (BTC) and Ethereum (ETH) have established support at important levels, suggesting a potential rally. In contrast, Ripple (XRP)’s approach to key resistance levels suggests that a successful breakout could lead to upward momentum in the coming days.
Bitcoin bulls are showing signs of strength
Bitcoin price broke through the $66,000 resistance level on Tuesday and was up 2.42% by Wednesday. As of this writing Thursday, it is hovering around $67,600.
The Moving Average Convergence Divergence (MACD) indicator further supports Bitcoin's rally after recording a bullish crossover on the daily chart on Monday. The MACD line (blue line) has risen above the signal line (yellow line), giving a buy signal. It also shows a rising green histogram bar above the neutral zero, suggesting upward momentum is building.
Furthermore, the relative strength index (RSI) on the daily chart shows that Bitcoin is approaching overbought levels. It is trading at 67, close to the overbought level of 70. If the price enters this zone on a closing price basis, traders would be advised against increasing 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. If it goes into overbought and then breaks out and returns to the neutral level of 50, it would be a sign of a deeper correction.
If the $66,000 level holds as support, BTC will continue its continued upward move to retest the July 29 high of $70,079.
BTC/USDT daily chart
However, if BTC fails to find support around the $66,000 level and closes below it, Bitcoin could widen its decline by 6% and retest the $62,000 support level. . This coincides with the 61.8% Fibonacci retracement level of $62,059 (argument from the July high of $70,079). (to an August low of $49,084).
Ethereum price shows upside potential
Ethereum price rebounded 6.5% on Monday, breaking through daily resistance at $2,461 and ending well above its 50-day exponential moving average (EMA). On Tuesday, ETH refused to test and find support near the 50-day EMA at $2,542. As of writing on Thursday, the price of ETH has been slowly rising, trading at around $2,600.
The MACD indicator supports Ethereum’s rise and suggests a bullish crossover on the daily chart. On Monday, the MACD line rose above the signal line, giving a buy signal. This shows the green histogram bar rising above the neutral zero, which also suggests that the price of Ethereum is likely to rise.
Additionally, the RSI on the daily chart is trading at 61, above the neutral level of 50, suggesting bullish momentum is gaining momentum.
If the 50-day EMA at $2,542 continues to hold as support, ETH could extend the rally to retest the August 24 high of $2,820.
ETH/USDT daily chart
On the other hand, if Ethereum price closes below the daily support level of $2,461, ETH could extend its decline by 13% and retest its September 6 low of $2,150.
If Ripple price closes above the 200-day EMA, the price could rise
Ripple price has been rejected multiple times since Monday near the 200-day EMA at $0.553. As of Thursday, it was trading around $0.551, close to the 200-day EMA of $0.553.
If XRP closes above the 200-day EMA at $0.553, it could rise more than 13% and retest the next daily resistance at $0.626.
The MACD indicator reversed a bullish crossover on the daily chart on Wednesday. The MACD line has risen above the signal line, giving a buy signal. This suggests that the bullish momentum is under control and that upward momentum may emerge.
Additionally, the RSI on the daily chart is trading at 49, close to the neutral level of 50. For the bullish momentum to gain momentum, the RSI needs to trade above the neutral level.
XRP/USDT daily chart
However, if XRP price fails to close above the $0.553 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.
