- Bitcoin price faces a slight rejection around its critical level on Wednesday after recovering 3.16% the previous day.
- Ethereum price breaks above its daily resistance at $1,861, eyeing a recovery ahead.
- XRP price falls below its 100-day EMA, indicating a correction on the horizon.
Bitcoin (BTC) price faces a slight rejection around its $85,000 resistance level on Wednesday after recovering 3.16% the previous day. Ripple (XRP) follows BTC as it falls below its critical level, indicating weakness and a correction on the horizon. However, Ethereum’s (ETH) price broke above its key resistance level, eyeing a recovery. Traders should watch US President Donald Trump’s “Liberation Day” on Wednesday, with significant tariff announcements, which could trigger increased volatility in the cryptocurrency market due to the potential impact of reciprocal tariffs.
Bitcoin recovers and approaches key resistance level
Bitcoin price stabilized around $82,500 to start the week on Monday and recovered 3.16% the next day. At the time of writing on Wednesday, it faces a slight rejection from its daily resistance level of $85,000. This daily level coincides with the 200-day EMA and a descending trendline, making it a key resistance zone.
The Relative Strength Index (RSI) indicator on the daily chart reads 47 and points downward after facing rejection from its neutral level of 50, indicating bearish momentum. If the RSI continues to slide downwards, the bearish momentum will increase, leading to a sharp fall in the BTC price.
The Moving Average Convergence Divergence (MACD) lines coil against each other, indicating indecisiveness among traders.
If BTC continues to find rejection from its daily resistance at $85,000, it could extend the decline to retest its next support level at $78,258.
BTC/USDT daily chart
However, if BTC recovers and closes above its daily resistance at $85,000, it could extend the recovery rally to the key psychological level of $90,000.
Ethereum could continue its downleg if the $1,861 support fails to hold again
Ethereum price closed below its daily support level of $1,861 last week and declined 9.88%. However, at the start of this week, ETH recovered 4.05%, closing above the $1,861 level until Tuesday. At the time of writing, it trades slightly down, nearing its daily resistance level of $1,861.
If ETH fails to find support around $1,861 and continues its downward trend, it could extend its decline to retest its important psychological level of $1,700.
The RSI on the daily chart reads 40, below its neutral level of 50 and points downward, indicating bearish momentum.
ETH/USDT daily chart
Conversely, if ETH finds support around the $1,861 level and continues to recover, it could extend the recovery to its March 24 high of $2,104.
XRP shows weakness as it closes below its 100-day EMA
XRP price closed below its 100-day EMA at $2.30 last week and declined 12.40%. In the last two days of this week, it stabilized around the $2.14 level. At the time of writing on Wednesday, it trades slightly down around the $2.09 level.
If XRP continues correcting, it could decline to test its next support level at $1.96.
The RSI on the daily chart reads 39, below its neutral level of 50, like Bitcoin and Ethereum, indicating bearish momentum.
XRP/USDT daily chart
On the other hand, if it continues to recover, it could extend the recovery to its previously broken 100-day EMA at $2.30.
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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