Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC finds support around $60,000
- Bitcoin finds support around the 200-day EMA at $60,000; a firm close below would suggest a decline ahead.
- Ethereum price is nearing its crucial resistance barrier at $2,461; rejection from this level suggests a decline ahead.
- Ripple price consolidates between $0.506 and $0.544 key levels, suggesting a phase of uncertainty among traders.
Bitcoin (BTC) is finding support around the key level, and a close below this level could signal a decline. Ethereum (ETH) is approaching a critical resistance barrier; rejection from this level suggests a decline ahead. Meanwhile, Ripple (XRP) is stuck in a range, reflecting a period of indecision among traders.
Bitcoin could decline further if it breaks below $60,000
Bitcoin price broke below the $62,059 level on Wednesday and declined over 3% until Thursday. At the time of writing, it is retesting and finding support around its 200-day Exponential Moving Average (EMA) at $60,024.
Suppose it closes below $60,024, BTC could decline over 4% and retest its September 16 low of $57,493, which roughly coincides with the ascending trendline (drawn by joining multiple lows since August 5).
The Relative Strength Index (RSI) on the daily chart trades below its neutral level of 50, suggesting weak momentum, which could further lower Bitcoin’s price.
BTC/USDT daily chart
However, the bearish thesis would be invalidated if BTC breaks and closes above $62,059. This scenario could lead to the BTC price rising and retesting its psychologically important $66,000 level.
Ethereum price approaches its key resistance level
Ethereum price faced rejection from its daily resistance level of $2,461 on Monday and declined 2.85% in the next two days. The daily level roughly coincides with the 50% price retracement level at $2,487 and the 50-day EMA around $2,532, making it a key resistance zone. As of Friday, it trades slightly above $2,413, approaching its daily resistance.
The RSI on the daily chart trades at 45 below its neutral level, indicating weakness and continuing a downward trend.
If the daily resistance level at $2,461 continues to hold as resistance, ETH could decline 10% from its current trading level to retest its September 6 low of $2,155.
ETH/USDT daily chart
On the other hand, If ETH breaks the $2,461 resistance level and closes above the 50-day EMA at $2,532, it could extend the rise to retest its August 25 high of $2,820.
Ripple price consolidates between $0.506 and $0.544 range
Ripple price broke below its ascending trendline, its 200-day EMA of around $0.553, and its daily support level of $0.544 on October 2. After the breakdown, XRP has been consolidated between $0.506 and $0.544 over a week. As of Friday, it trades at around $0.535, approaching its upper consolidation level at $0.544.
If XRP breaks and closes below the $0.506 level, it could extend the decline by 15% to retest the August 5 low of $0.431.
The RSI indicator on the daily chart also trades below its neutral level of 50, indicating bearish momentum and a continuation of the downward trend.
XRP/USDT daily chart
However, if XRP breaks above the $0.544 level and closes above the 200-day EMA at $0.553, it could extend the rise by 13% to retest its next daily resistance at $0.626
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.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
