- Bitcoin price could dip below $60,000 before BTC halving date amid elevated market risk.
- Ethereum price brews bullish reversal toward $4,000 contingent on how BTC bulls play their hand.
- Ripple price could revisit weekend lows below $0.4500 amid mounting overhead pressure.
Bitcoin (BTC) price has the broader cryptocurrency market on standby, awaiting a definitive directional bias. Like in the case for most altcoins, Ethereum (ETH) and Ripple (XRP) are in the red on the back of chaos in the Middle East between Iran and Israel.
Geopolitical tensions between the two countries have markets in risk-off mode. For instance, Bitcoin price dipped to $62,000 on Saturday when reports confirmed that Iran had launched dozens of drones at Israel. However, following reports by Iran’s United Nations (UN) Mission that the country’s retaliatory attack on Israel was “deemed complete,” Bitcoin price bounced above $65,000 on Sunday.
I know a guy who sold all his Bitcoin at $61,666 because Iran was apparently “very serious” about destroying Israel this time and that global nuclear warfare was “inevitable”. Now he’s in a state of panic as BTC has bounced back to $65,000 and he doesn’t know what to do. Scary.
— Mike Alfred (@mikealfred) April 13, 2024
As indicated in a previous report, the crypto markets are dumping because of a general atmosphere of fear and risk aversion in financial markets. Investors are looking to liquidate their positions to reduce risk and move toward more traditional safe-haven assets like Gold and Silver.
Nevertheless, the market has the BTC halving in sight, out barely five days with just about 642 blocks remaining.
Also Read: Bitcoin price tanks to $62K ascribed to geopolitical tension a week to BTC halving
Bitcoin price could revisit $60,000
Bitcoin price downside momentum could have more play before the halving. The pioneer crypto remains below crucial support provided by the ascending trendline after a slip below three days ago. Stuck in the lower section of the market range between $61,970 and $73,122, where selling pressure climaxed and buying pressure peaked, respectively, the odds favor the bears.
For starters, the Relative Strength Index (RSI) is below the ‘50’ mean level with an overall southbound inclination. This, coupled with the position of both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) in negative territory reinforced the bearish outlook.
While a retest of the $61,970 base is likely, the dire case could see Bitcoin price go as low as the $60,000 psychological level before a pullback.
BTC/USDT 1-day chart
On the other hand, a show of strength by BTC bulls could see Bitcoin price reclaim above the bullish trendline, confirmed by a flip of the 50% Fibonacci placeholder into support above $67,546. This could draw more bulls to the scene, sending BTC price above the $69,000 threshold. In a highly bullish case, BTC could reclaim the $73,777 all-time high before an attempt at further upside.
Also Read: Bitcoin price unable to tag $67K despite Hong Kong BTC and ETH spot ETF approvals
Ethereum price works out a bullish reversal, but BTC won’t let it happen
Ethereum price is consolidating within a falling wedge, which is a bullish reversal pattern. Contingent on whether BTC shows strength or crashes further, ETH price could respond in kind. A show of strength could send Ethereum price higher. A breach of the upper boundary of the governing chart pattern above the $3,750 level would signal the opening of a long position.
ETH/USDT 1-day chart
Conversely, with the broader market still in the red, Ethereum price could continue the fall below the 100-day Simple Moving Average (SMA) at $3,023. A candlestick close below $2,750 would invalidate the bullish thesis.
Also Read: Ethereum whales pushes its price up as Hong Kong approves spot ETH ETF
Ripple price next move hinges on RSI bounce
Ripple price could have more downside momentum to come amid growing overhead pressure due to the 50, 100 and 200-day Simple Moving Averages (SMAs) at $0.6094, $0.5754, and $0.5837, respectively.
With the RSI well below 50 and the MACD and AO in negative territory, XRP price could slide to $0.4500. Even worse, it could establish a lower low below the April 13 bottom, tagging the $0.4000 psychological level.
XRP/USDT 1-day chart
On the flip side, traders buying the correction could bode well for Ripple price. While a move above the $0.6000 psychological level would be ideal, the bearish thesis would only be invalidated upon a candlestick close above $0.6685. Traders should watch for the RSI bouncing above the 30 threshold for possible entry.
Also Read: XRP recovers from weekend massive decline after developers propose native lending on XRP Ledger
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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