- Bitcoin price could fall 5% to the support confluence between 100-day SMA and horizontal line at $40,650 as boring chop continues.
- Ethereum price could revisit $2,200, a 4% correction, as the 50-day SMA proves impenetrable.
- A retest of the October lows around $0.4734 seems likely for Ripple price as XRP token holders show weakness.
Bitcoin (BTC) price continues to record a boring chop, trading horizontally, with altcoins such as Ethereum (ETH) mimicking the price action. Meanwhile, Ripple (XRP) price continues to suffer in the hands of unmotivated traders.
Also Read: Week Ahead: Crypto markets to turn volatile as AI steals the spotlight
Bitcoin price likely to fall 5%
Bitcoin (BTC) price is trading within a range, consolidating between the centerline and the upper band of the Bollinger indicator at $41,895 and $44,210, respectively. With the two Bollinger bands contracting, BTC could record an impulsive or rash move soon.
The Relative Strength Index (RSI) is closely bearish, teasing with a cross below the signal line (yellow band). The Moving Average Convergence Divergence (MACD) also appears subdued with miniature volumes on the histogram bars. This is also reflected in the Awesome Oscillator (AO), tilting the odds in favor of the bears.
If the bears have their way, Bitcoin price could descend 5% to find support due to the confluence between the 100-day Simple Moving Average (SMA) and the horizontal line at $40,650. If this level fails to hold as support, BTC could extend the fall into the demand zone between $38,496 and $39,582. A break and close below the midline of this order block at $39,196 would confirm the continuation of the downtrend, potentially going as low as the $37,800 support.
BTC/USDT 1-day chart
Conversely, if bulls have their way, Bitcoin price could shatter past the upper band of the Bollinger indicator at $44,210. This could see BTC climb to $48,000, or in a highly bullish case, tag $50,000, nearly 20% above current levels.
Also Read: Bitcoin price gains strength as GBTC outflows shrink
Ethereum price could drop to $2,200
Ethereum (ETH) price action is almost similar to that of BTC. It could fall 4% to $2,200 as overhead pressure due to the 50-day SMA continues to build. The Proof-of-Stake (PoS) token’s price has made multiple attempts to breach this supplier congestion level to no avail.
With the RSI below 50, the AO and MACD in negative territory, and below the latter’s signal line (orange band), the odds favor the downside. Ethereum price could slip past $2,200 to test the 100-day SMA at $2,203. In a dire case, the fall could see ETH dip into the demand zone between $2,059 and $2,118.
ETH/USDT 1-day chart
On the other hand, increased buying pressure could see Ethereum price overcome the 50-day SMA to confront the $2,388 barrier. Flipping this into support could restore Ether into the ascending parallel channel, a gateway to more gains.
Also Read: Ethereum monthly transaction count climbs to highest level since July 2022
Ripple price looks for pullback as XRP holders show weakness
Ripple (XRP) looks ready to fall as it is stuck below the foothold of the midline of the descending parallel channel. Increased selling pressure could see XRP price retest the October lows around $0.4734, with technical indicators showing an unmotivated holder community. This is seen by the waning momentum on the RSI below 50 and the position of the AO and MACD in negative territory.
XRP/USDT 1-day chart
On the flipside, enhanced buyer momentum could see XRP price breach the resistance due to the midline of the channel, bringing the $0.6000 psychological level into focus.
Also Read: XRP price trades broadly unchanged leading up to crucial milestone in SEC vs. 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.
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