Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around $60,000
- Bitcoin price finds support near its 200-day EMA around $60,000; a firm close below would suggest a decline ahead.
- Ethereum price closes below its critical support at $2,461, eyeing a decline ahead.
- Ripple price closes below its key support levels, hinting at the continuation of the downtrend.
Bitcoin (BTC) is hovering around its key support level; a sustained close below this threshold could signal further declines. On the other hand, Ethereum (ETH) and Ripple (XRP) have closed below their critical support levels, indicating further downsides.
Bitcoin is set to resume a downtrend if it falls below the key support level
Bitcoin price retested and found support around its 200-day Exponential Moving Average (EMA) at $59,904 on Wednesday after being rejected from its psychological level of $66,000 on Sunday. As of Friday, it trades slightly above that level at around $61,000.
Momentum indicators like the Moving Average Convergence Divergence (MACD) signal weakness for Bitcoin, showing a bearish crossover on Tuesday. The MACD line (blue line) crossed below the signal line (yellow line), giving a sell signal. Moreover, it also shows rising red histogram bars below the neutral line zero, suggesting that Bitcoin’s price could experience downward momentum.
Additionally, the Relative Strength Index (RSI) trades at 47, below its neutral level of 50, indicating bearish momentum. Bitcoin price could decline further if the RSI continues to stay below 50 and decline.
If BTC closes below its 200-day (EMA) at $59,904, it could decline nearly 5.7% from its current trading level to retest its September 18 low of $57,493.
BTC/USDT daily chart
However, if BTC rises, closing above the $62,125 level, it could resume the rally to retest its next resistance at $66,000.
Ethereum shows signs of weakness as it closes below $2,400 support level
Ethereum price broke below its 50-day EMA at $2,569, closed below its daily support level of $2,461 on Tuesday, and declined more than 9% until Thursday. As of Friday, it trades slightly above at around $2,300.
Momentum indicator MACD signal weakness, like Bitcoin, showed a bearish crossover on Wednesday. The MACD line crossed below the signal line, giving a sell signal. Moreover, it also shows rising red histogram bars below the neutral line zero, suggesting that Ethereum’s price could experience downward momentum. Additionally, the RSI trades at 40, below its neutral level of 50, indicating strong bearish momentum.
If the $2,461 level acts as resistance, ETH could continue its decline to retest its September 6 low of $2,155.
ETH/USDT daily chart
Conversely, if ETH’s daily candlestick breaks above the $2,461 level and closes above its 50-day EMA at $2,569, the rally could continue to retest its August 24 high of $2,820.
Ripple is set for a downturn as it closes below its key support levels
Ripple price was rejected from the July 31 high of $0.657 and declined more than 18% in the next four days. During this decline, XRP closed below its 200-day EMA at $0.555 and its daily support level at $0.545, closing below its ascending trendline. On Friday, it trades slightly above around $0.532.
If these levels (the 200-day EMA at $0.555, the daily level at $0.544, and the previous broken ascending trendline) hold as resistance, it could extend the decline further and retest its August 5 low of $0.431.
Like Bitcoin and Ethereum, the momentum indicators MACD and RSI signal bearish biases and suggest the continuation of downward moves.
XRP/USDT daily chart
However, if Ripple rises and closes above the 200-day EMA at $0.555, it could extend its rise to retest its July 31 high of $0.657.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
