- Bitcoin price could extend the fall to $60,000 without invalidating the bullish thesis.
- Ethereum price could drop 10% if BTC weakness prevails
- Ripple price could drop 7% to $0.5740 before the next leg up.
Bitcoin (BTC) price has crashed, and with it, altcoins have followed in a cascade of dumps that has seen over $530 million in total liquidations across the cryptocurrency market. However, the thesis remains bullish, with the current correction likely a good buying opportunity for late bulls before the next move north.
Also Read: Over $530 million in crypto positions forcibly closed as Bitcoin price dips on Friday
Is $60,000 the next level as Bitcoin price dumps?
Bitcoin price remains below the $69,000 threshold, which had capped the upside potential for BTC since November 2021. Technicals suggest a continuation of the fall, amid a nose-diving Relative Strength Index (RSI), which suggests momentum is falling.
The histogram bars of the Awesome Oscillator (AO) are flashing green, a sign of the bears’ having a strong presence in the BTC market. Additionally, the volume indicator is showing large red bars, showing the downtrend is gaining strength.
Bitcoin price could extend the fall, which means investors could still have an opportunity to buy lower before a strong move north ahead of the BTC halving. One trader and analyst on X, @Cryptomanran, indicates, “A 20% or 30% dip would be completely normal and healthy in a bull market, especially a month before the halving.”
A 20%/30% dip would be completely normal and healthy in a bull market, especially a month before the halving.
We could go as low as $55k/$60k easily and that would be a crazy buying opportunity.
I’m not rushing to buy anything yet…
— Ran Neuner (@cryptomanran) March 15, 2024
Nevertheless, investors are encouraged to conduct their own research. In a dire case, however, Bitcoin price could slip below the $60,000 psychological level for a liquidity grab of the March 5 low of around $59,005.
BTC/USDT 1-day chart
On the other hand, if the bulls act now, buying BTC at current levels, Bitcoin price could recover. To confirm the uptrend, investors must watch for a candlestick close above $64,044, the mean threshold of the supply zone between $71,290 and $73,193. Such a move would clear the path for BTC to reclaim the $70,000 psychological level, or higher to clear the $73,777 peak before a new all-time high.
Also Read: Bitcoin price slumps further from Thursday's record high above $73K
Ethereum price suffers the wake of a weakening BTC
Ethereum price is nose-diving, taking direct cues from BTC despite the recent Dencun Upgrade, which was expected to be a bullish fundamental to positive impact ETH price. With technicals flashing bearish, Ethereum price could extend the fall to test the $3,527 support.
If the aforementioned level fails to hold as support, Ethereum price could slip past this buyer congestion level, potentially going as low as the $3,200 level, a 12% drop below the current price.
ETH/USDT 1-day chart
Conversely, a re-entry by the bulls could see Ethereum price recover. A flip of the formidable resistance due to the equal lows of $3,722 into support after a strong spike in bullish momentum would improve the chances of continuing the uptrend. This development could result in ETH heading straight to the $4,093 range high.
Also Read: Ethereum L2 bridge deposits skyrocket after Dencun Upgrade
Ripple price eyes a 7% drop
Ripple price is down 15% after a peak of $0.7440 on March 11. Amid falling momentum and a downtrend that is gaining strength, XRP price could extend the fall 7% to $0.5740 before a possible recover.
However, in a dire case where this level fails to hold, Ripple price could extend lower to the $0.5368 support level where the bulls could have another buying opportunity.
XRP/USDT 1-day chart
On the other hand, if bullish momentum increases, Ripple price could reverse the direction. A move above the $0.700 psychological level would inspire more buy orders, reinvigorating the trend for XRP price to clear the $0.7500 range high.
In a highly bullish case, Ripple price could reach the $0.8000 psychological level. Such a move would denote a 27% climb above current levels.
Also Read: XRP price plummets to $0.67 as holders brace for SEC vs. Ripple lawsuit deadline
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.
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