- Bitcoin retested and found support around the $66,000 level, with recovery on the cards.
- Ethereum price stabilizes after retesting its daily support level of $2,461; a firm close below would suggest a decline ahead.
- Ripple price was rejected at its 200-day EMA of $0.552, with a possible continuation of a downtrend.
Bitcoin (BTC) has found support at the key $66,000 level, suggesting a potential recovery. However, Ethereum (ETH) and Ripple (XRP) prices are struggling below their critical support levels, indicating a possible continuation of their downtrends.
Bitcoin shows some signs of recovery after finding support around $66,000
Bitcoin price declined to retest the $66,000 level on Wednesday and found support, rising by 2.3% on Thursday. At the time of writing on Friday, it trades slightly down around $68,000.
If the $66,000 level continues to hold as support, it could rally to reclaim its Monday high of $69,519. A successful break and close above $70,000 could extend the rally to retest its next key barrier, which is already the all-time high of $73,777 seen in mid-March.
The Relative Strength Index (RSI) indicator on the daily chart reads 60 and points upwards after bouncing off around the neutral level of 50 on Wednesday, indicating the bullish momentum is gaining traction.
BTC/USDT daily chart
Conversely, if BTC breaks and closes below $66,000 support, it could decline 5.8% to retest its next support at $62,055, its 61.8% Fibonacci retracement level (drawn from July’s high of $70,079 to August’s low of $49,072).
Ethereum is poised for a downturn if it breaks below $2,460
Ethereum price broke and closed below the 50-day Exponential Moving Average (EMA) at $2,559 on Wednesday after encountering resistance near a descending trendline (drawn by joining multiple highs from the end of May) earlier in the week. However, it stabilized after retesting its daily support level of $2,461 on Thursday but faces resistance around the 50-day EMA. As of Friday, it trades slightly down around $2,519.
If ETH breaks and closes below the $2,461 support level, it could decline over 12% to retest its September 6 low of $2,149.
The RSI indicator on the daily chart has declined to 47, below its neutral level of 50, indicating increasing bearish momentum.
ETH/USDT daily chart
However, if ETH rises and closes above the 50-day EMA at $2,560, it could rally to retest its Monday high of $2,769.
Ripple price poised for a downtrend following rejection from 200-day EMA
Ripple price faced resistance from its 200-day EMA at the $0.551 level earlier this week and declined 3.78% until Wednesday. As of Friday, it continues to trade slightly down around $0.527.
If the 200-day EMA at $0.551 holds as resistance, it could continue its decline to retest its September 6 low of $0.502.
The RSI indicator on the daily chart is at 41, below its neutral level of 50, suggesting that bearish momentum is gaining traction.
XRP/USDT daily chart
On the other hand, if XRP breaks and closes above the 200-day EMA at $0.552, it could continue its rally 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.
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
Bitcoin Weekly Forecast: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
XRP fails to recover even as Ripple files appeal in response to SEC's move
Ripple price has been range bound between $0.5666 and $0.5068 since October 3. Over the past 20 days, XRP has traded within the range even as the SEC vs. Ripple lawsuit sees new developments.
Ethereum Price Forecast: ETH declines below $2,500 as demand fades
Ethereum price is nearing its daily support level of $2,461; a firm close below this level would suggest a decline ahead. Coinbase Premium Index shows signs of weakness and remains below neutral levels.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC shows signs of recovery
Bitcoin has found support at the key $66,000 level, suggesting a potential recovery. However, Ethereum and Ripple prices are struggling below their critical support levels, indicating a possible continuation of their downtrends.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin (BTC) trades slightly down at around $67,500 on Friday after finding support around the $66,000 level on Wednesday, following three consecutive days of decline earlier in the week.
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.