Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC shows weakness, likely to provoke a cascade of chops
- Bitcoin price could drop 10% after a weeklong consolidation with BTC bulls showing exhaustion.
- Ethereum price is likely to revisit $2,800, a 5% fall that could trigger a cascade of losses.
- Ripple price eyes $0.6000 as XRP bulls show strength on the heels of SEC lawsuit conclusion.
Bitcoin (BTC) price’s bullish breakout appears to be losing steam, with the sentiment spreading across the market and leaving Ethereum (ETH) and altcoins in general susceptible to a crash. Meanwhile, Ripple (XRP) price is an outlier, pushing north on the heels of developments in the legal front.
Also Read: Bitcoin price likely to drop 10% as US markets commemorate Presidents’ Day
Bitcoin likely to correct before next leg up
Bitcoin (BTC) price is confronting resistance at $52,768 blockade, a roadblock that has stood for the past week. With the Relative Strength Index (RSI) dejected and moving horizontally, coupled with its position at 79, BTC is overbought, a status that often precipitates a correction.
Likely targets in a southbound directional bias would be the 78.6% and 61.8% Fibonacci levels, at $49,786 and $47,445, respectively. In a dire case, Bitcoin price could roll over to the 50% Fibonacci level at $45,801, 12% below current levels.
The Spent Output Profit Ratio (SOPR) indicator also suggests a possible correction, having increased above 1 as a 30-day Simple Moving Average (SMA). This is bolstered by fading histogram bars on the Moving Average Convergence Divergence (MACD) indicator.
BTC/USDT 1-day chart
Notably, however, the bulls still have a presence in the BTC market, seen with the status of the MACD in positive territory. If these traders act, Bitcoin price could push north, clearing the $52,768 blockade and potentially record a new range high.
Also Read: Bitcoin price bullish outlook inspires IntoTheBlock’s 85% forecast of BTC at a new ATH by August
Ethereum price likely to revisit $2,800
Ethereum (ETH) price has outperformed BTC. However, it appears to be delaying the inevitable as altcoins await the Bitcoin cue. The RSI shows ETH is already overbought, worsened by the SOPR above 1, hinting at possible correction.
A move south could see Ethereum price lose the immediate support at $2,874, potentially extending the fall to the $2,800 base, 5% below current levels. In a dire case, ETH could roll over to the confluence between the midline of the channel and the horizontal line at $2,689. A break and close below this level would invalidate the bullish thesis.
ETH/USDT 1-day chart
On the other hand, a reentry by the bulls could send Ethereum price further north, clearing the $2,944 range high and potentially extend the gains to the $3,000 psychological target, almost 3% above current levels.
Also Read: Ethereum outperforms Bitcoin with double-digit weekly gains and spike in Open Interest
Ripple price eyes $0.6000
Ripple (XRP) price remains bullish despite the broader market showing weakness, an optimism inspired by hopes of a conclusion in the legal saga against the US Securities & Exchange Commission (SEC).
With RSI at 58 and leaning north, Ripple price could increase amid rising momentum and the fact that there is still more room north before ETH is overbought.
Enhanced activity among the bulls could see XRP price shatter the resistance due to the upper boundary of the descending parallel channel bringing the $0.6000 psychological level into focus. A tag of this milestone would constitute a 7% climb above current levels.
XRP/USDT 1-day chart
On the other hand, a rejection from the channel’s upper boundary could send Ripple price south, first losing support due to the $0.5368 buyer congestion level. An extended fall could see Ripple price test the midline of the channel at $0.5145, or in a dire case, slip to the support floor at $0.4734, 15% below current levels.
Also Read: XRP price steadies above $0.56 ahead of deadline in SEC v. Ripple lawsuit
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
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.
What are altcoins?
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.
What are stablecoins?
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.
What is Bitcoin Dominance?
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
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
