- The price of Bitcoin has remained stable between $94,000 and $100,000 for nearly two weeks.
- On Monday, Ethereum’s price stands at approximately $2,680, following a modest increase of 1.3% last week.
- XRP continues to gain momentum on Monday, having surged by 14% last week.
Bitcoin (BTC) has been fluctuating between $94,000 and $100,000 for nearly two weeks. Meanwhile, Ethereum (ETH) mirrors BTC’s movement and trades around $2,680, while Ripple (XRP) shows resilience and prolongs its gains on Monday after a significant rally last week.
Bitcoin Appears to Consolidate Ahead of a Major Move
Bitcoin’s price fell below the $100,000 support mark on February 4 and has remained within the $94,000 to $100,000 range since. As of Monday, BTC is navigating around the $96,400 mark.
Should BTC close below the lower boundary of $94,000, it may prompt a further decline towards the crucial psychological barrier of $90,000.
The Relative Strength Index (RSI) on the daily chart registers at 44, indicating consolidation after being rejected at its neutral point of 50 last week, thus suggesting a slight bearish trend. Additionally, the Moving Average Convergence Divergence (MACD) indicates a bearish crossover and is reflected in the red histogram bars, suggesting further correction potential.
BTC/USDT daily chart
Conversely, should BTC cross the upper limit of the consolidation zone at $100,000, it could potentially rally to test its peak of $106,012 from January 31.
Ethereum Bulls Set Their Sights on the $3,000 Level
Ethereum’s price encountered resistance near its descending trendline on February 1, resulting in a 13.87% decline, which continued as it closed below the crucial $3,000 mark the following day. The cryptocurrency suffered an additional nearly 9% drop the following week, though it rebounded slightly by 1.3% last week. As of Monday, ETH trades around $2,670.
If ETH maintains its recovery, it could potentially test the $3,000 resistance level.
The RSI on the daily chart shows a reading of 38, having bounced back from its oversold threshold of 30, signaling decreased selling pressure. Nevertheless, the RSI must surpass its neutral level of 50 to sustain bullish momentum, which would bolster the recovery trend. Furthermore, the MACD indicator displayed a bullish crossover on the daily chart last week, issuing buy signals and suggesting a potential upward trend ahead.
ETH/USDT daily chart
On the flip side, should ETH continue its downward trajectory and close below $2,359, it may trigger a decline towards its next weekly support level of $1,905.
XRP’s Momentum Indicators Indicate Bullish Price Activity
Ripple’s price surged 14% last week, overcoming the daily level of $2.72 on Friday and establishing support around that level on Sunday. As of Monday, it is hovering around its daily support of $2.72.
If XRP maintains this daily support level, it may extend its rally to retest the January 16 high of $3.40.
The RSI on the daily chart is currently at 54, which is above its neutral mark of 50, indicating bullish momentum. Additionally, akin to Ethereum, XRP’s MACD indicator has demonstrated a bullish crossover on the daily chart last week, which provides buy signals and indicates an impending upward trajectory.
XRP/USDT daily chart
However, if XRP closes below the pivotal support level of $2.72, it could decline further towards its next support threshold at $1.96.
Bitcoin, Altcoins, Stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, designed to function as a form of currency. This digital asset is decentralized, meaning no single person, group, or entity can control it, eliminating the need for intermediaries during transactions.
Altcoins refer to any cryptocurrency other than Bitcoin. Some consider Ethereum not to be an altcoin due to its significant status. The first altcoin, Litecoin, was forked from Bitcoin’s protocol, hence it’s seen as an “improved” version of Bitcoin.
Stablecoins are cryptocurrencies designed to maintain a stable price, their value typically backed by reserves of the asset they represent. They are pegged to a commodity or financial instrument, such as the US Dollar (USD), with supply regulated via algorithms or market demand. Their primary purpose is to provide an on/off ramp for investors transitioning in and out of cryptocurrencies, as well as to serve as a store of value amid market volatility.
Bitcoin dominance measures Bitcoin’s market capitalization relative to the total capitalization of all cryptocurrencies. This metric reflects investor interest; high dominance often corresponds with bull runs, as investors gravitate towards Bitcoin’s relative stability. A decline in dominance typically indicates a shift of investor capital toward altcoins seeking higher returns, often resulting in altcoin rallies.
