- Bitcoin fell to $18,000 and pulled most altcoins down with it, BTC recovery is still out of sight.
- Ethereum embraced support at $530, giving way for a rebound eyeing $560 in the near term.
- Ripple is still in grave danger of plunging to $0.45, especially if support at $0.5 fails to hold.
The market is a sea of red following Bitcoin’s recent slide to $18,000. Altcoins across the board dived in tandem with BTC, but on-chain metrics suggest that this is the best time to buy the dip and capitalize on their potential recovery.
Bitcoin network growth remains bearish
According to Santiment, Bitcoin’s DAA vs. Price Divergence has deviated from the mean for nearly two years. The network’s active address activity has also been bearish, mostly due to the consistent decline in the number of addresses joining the network and interacting on the blockchain. In other words, BTC address activity is failing to keep up with the month-over-month price increase since September.
Bitcoin DAA vs. Price Divergence chart
Meanwhile, Bitcoin is on the verge of a retreat to $16,500 if the short-term 200 Simple Moving Average caves. Sell orders are likely to surge, creating enough volume to validate the bearish trend. On the upside, overhead pressure is mounting under $18,000, further dampening the hope for recovery.
BTC/USD 4-hour chart
For now, Bitcoin’s path of least resistance is downwards. However, a bullish outlook may start to form if the price closes the day above beneath the 200 SMA. Price action past $18,000 will call for more buyers to join the market as BTC scales the levels back to $19,000.
Ethereum investors await the most reliable entry point
The MVRV Opportunity/Danger Zones indicator from Santiment shows that investments in the last seven days have suffered greatly. On the other hand, investments with a 30-day moving average have remained relatively neutral.
Intriguingly, the network is still netting a long-term success record. For now, it is still shaky ground to go all-in on Ether. Still, investors are probably waiting for another leg down before they confidently pounce on the second-largest cryptocurrency.
Ethereum MVRV Opportunity/Danger Zones chart
After Ether extended the bearish leg under the ascending triangle, support at $530 seems to have come in handy. The near-term buyer congestion at the 200 SMA was not touched. In the meantime, ETH has rebounded to $540.
The Relative Strength Index adds credence to the short-term bullish outlook by embracing recovery from the oversold region. A daily close above $540 would be a critical bullish signal, allowing buyers to focus on gains above $560 and $580, respectively.
ETH/USD 4-hour chart
Ripple’s dumping continues as $0.4 beckons
The cross-border token’s breakdown seems unstoppable after the breakout under the symmetrical triangle. At the time of writing, XRP is seeking refuge above $0.5 while trading at $0.52. A daily close below $0.5 might confirm the impending drop to $0.4, marginally above the 200 SMA.
The triangle has presented a downward target of $0.33. Therefore, bulls have an uphill battle to shake off the bearish pressure and return XRP on the pathway to $1. The RSI doubles down on the intense bearish pressure as it buries itself more in-depth in the oversold area.
XRP/USD 4-hour chart
Ripple will get back to the uptrend if support at $0.5 remains intact. Trading above $0.55 might confirm the return of the bulls, thus encouraging recovery above $0.6.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.