- 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.
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