- Bitcoin is retesting the $66,000 resistance level. If the stock price exceeds this, there is a possibility that the stock price will continue to rise.
- Ethereum price has broken through the resistance barrier and is poised for further upside.
- Ripple price is approaching the 200-day EMA of $0.553. A higher close suggests a possible recovery.
Bitcoin (BTC) is currently retesting its key resistance level, and a solid close above this threshold could fuel the ongoing rally. Meanwhile, Ethereum has successfully broken through the resistance level, suggesting a possible rally, while Ripple is approaching a key resistance wall, and a close breakout could signal a recovery ahead. There is sex.
Bitcoin bulls aim for $70,000 level
Bitcoin price found support near the 200-day exponential moving average (EMA) of $60,217 on Thursday, before retesting the psychological level of $66,000, rising 9.7% over the next four days. As of Tuesday, it was down slightly to about $65,700.
If BTC breaks through and closes above the $66,000 level, it could continue its upward move to retest the July 29 high of $70,079.
The Moving Average Convergence Divergence (MACD) indicator provides further support for Bitcoin's rally, showing a bullish crossover on the daily chart. The MACD line (blue line) rose above the signal line (yellow line), giving a buy signal on Monday. This shows that the green histogram bar is rising above the neutral zero line, which also suggests that the price of Bitcoin is likely to rise.
Additionally, the relative strength index (RSI) on the daily chart shows that Bitcoin is not overbought yet, with Bitcoin trading at 62, but close to the overbought level of 70. Traders will be alerted if it enters this zone on a closing price basis. The rally may continue, but we need to avoid adding to long positions. If it enters an overbought condition and then breaks out and returns to the neutral level of 50, it would be a sign of a deeper correction.
BTC/USDT daily chart
However, if Bitcoin fails to find support around $62,000 and closes below it, it could extend the decline by 3% and retest the 200-day EMA at around $60,000.
Ethereum bulls show signs of retaliation
Ethereum price broke through the daily resistance at $2,461, rebounded 6.5%, and closed above the 50-day EMA at $2,536 on Monday. As of this writing Tuesday, it is trading just around $2,600.
If the 50-day EMA at $2,536 holds as support, ETH could extend the rally to retest the August 24 high of $2,820.
The MACD indicator further supports Ethereum’s rise, showing a bullish crossover on the daily chart. The MACD line rose above the signal line, giving a buy signal on Monday. 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 59, above the neutral level of 50, suggesting bullish momentum and further gains for Ethereum.
ETH/USDT daily chart
On the other hand, if Ethereum price closes below the daily support level of $2,461, the decline could widen by 13% and retest the September 6 low of $2,155.
Ripple price could rise if it closes above the 200-day EMA
Ripple price broke above the daily resistance level of $0.544 on Monday. As of Tuesday, it was trading around $0.547, 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 is about to reverse a bullish crossover on the daily chart. If the MACD line crosses above the signal line, a buy signal occurs. This suggests that the bullish momentum is under control and that upward momentum may emerge.
XRP/USDT daily chart
However, if XRP price fails to close above the $0.553 level and closes below the daily resistance level of $0.547. 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.
