- Bitcoin price has established weekly resistance at $65,600, which could lead to a drop into the liquidity pool between $60,600 and $59,005.
- Ethereum price may confirm a falling wedge pattern by 25% above $3,406 at the breakout point.
- Ripple price is defending $0.5000, but due to excessive bearish activity, XRP holders’ vision of $0.6000 will remain a hopium dream.
Bitcoin (BTC) price has hit a new high in the past seven days, and a similar outlook can be seen for altcoins. Meanwhile, altcoins present a rather gloomy outlook amid widespread market hemorrhage, but fundamentals indicate we could see some relief soon.
- Greatly cools down euphoria and sentimentality
The cooling phase allows the market to correct itself, stabilize and establish a more sustainable growth trajectory.
- Healthy outlook for funding rates
Healthy funding rates indicate that the market ecosystem is well-functioning and balanced, promoting stability, reducing the risk of manipulation, and fostering trust among market participants.
- Overleveraged short positions are waiting to be liquidated
While the initial liquidation of an overleveraged short position may cause short-term volatility, the ultimate impact can often be positive for asset prices.
Read more: Bitcoin could surprise investors this week
Bitcoin price forms $5,000 range
Bitcoin price established the $5,000 macro market range after consecutive weekly closes below $65,600 and bulls preventing a fall below $60,000. Given that the Relative Strength Index (RSI) remains subdued below the average level of 50 and the Awesome Oscillator (AO) indicator continues to record a red histogram in the negative region, the odds suggest further decline. Masu.
If the sellers gain momentum and Bitcoin price falls into the liquidity pool between $60,600 and the March 5th intraday low of $59,005, the bulls could move just above the psychological level of $50,000. Wait to buy BTC and the downtrend may continue.
BTC/USDT 1 day chart
Conversely, if history repeats itself, Bitcoin price could move in the opposite direction to the DXY comparison indicator. However, to confirm the continuation of the uptrend, bulls need to push BTC above $72,000. This is because a lot of bearish moves await the BTC price near the $70,000 threshold.
Also Read: Bitcoin Price Outlook: Will BTC Ignore Key Macro Market Trends This Week?
Ethereum price could rise by 25%, pending confirmation
Ethereum price is trading with a bearish bias, but it won’t last long as the price movement since March 12th has consolidated into a descending wedge pattern. The execution of this bullish reversal technical formation occurs after a definitive breakout above the upper trend line on the 1-day time frame.
The target objective for this pattern is a 25% upside towards $4,250, determined by measuring the health of the wedge and superimposing it on the expected breakout point.
While the Relative Strength Index (RSI) continues to hover around the average level of 50, the AO indicator shows increasing bullish sentiment indicated by the green histogram heading towards positive territory.
The bullish theory is also supported by the higher highs compared to lows of ETH price seen on the RSI chart since mid-April, suggesting a bullish divergence. If the RSI is above the average level, the odds will further tilt in favor of a bullish breakout.
ETH/USDT 1 day chart
On the other hand, if the ETH bears have their way and take profits from the nearly 10% gain since Ethereum price rebounded from the $2,900 support, the market could undergo a correction. The bullish theory will be invalidated if the candlestick falls below $2,900.
Also read: Ethereum fees drop to lowest since October, ETH remains above $3,200
Ripple price suffers from the weight of excessive bearish pressure
Ripple’s downside potential is still very strong, with a bearish move waiting for XRP price to rise and then fall. This can be seen in the multiple spikes in the volume profile (gray) on his daily chart below. The RSI has also been steadily declining, indicating downward momentum.
This, combined with the red histogram bar remaining in negative territory, strengthens the bearish outlook. If the psychological support of $0.5000 is lost, Ripple price could fall to the $0.4500 threshold, and in the worst case, the decline will extend to the lower end of the market range at $0.4188, nearly 20% below current levels. there is a possibility.
XRP/USDT 1 day chart
Conversely, if an XRP bull market emerges, Ripple price may recover. However, for the bearish theory to be invalidated, the price needs to cross $0.6500 at candlestick close. This is because a massive bearish move awaits the payment token in the area around $0.6000 as XRP bears wait to cash out.
Also read: XRP drops to $0.50 as ETH Gate controversy resurfaces, Ripple CTO discusses implications for litigation
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. 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. A decline in BTC's 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.
