- Bitcoin’s price remains around $82,000 on Monday after a nearly 15% decrease last week.
- Ethereum’s price closes beneath the $2,125 support mark, signaling potential further correction.
- XRP is trading at approximately $2.17 on Monday following a significant 27.25% drop last week.
Bitcoin (BTC) is steady around $82,000 on Monday, having dropped close to 15% the previous week. Similarly, Ethereum (ETH) and Ripple (XRP) experienced declines of almost 20% and 28%, respectively, as their momentum indicators still display weakness, indicating possible further corrections ahead.
Bitcoin’s price seems set for further decline after closing below the 200-day EMA
On Sunday, Bitcoin’s price fell and closed beneath its 200-day Exponential Moving Average (EMA) at $85,754, marking a 6.37% decrease. As of Monday, it is hovering around $81,800.
If BTC maintains its downtrend, it could fall to test the low of $78,258 from February 28. A close below this level could lead to further declines towards the next support level at $73,072.
The Relative Strength Index (RSI) on the daily chart reads 36, having rejected the neutral level of 50 last week, which indicates bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) showed a bearish crossover on Sunday, signaling potential sell-offs and a downward trend.
BTC/USDT daily chart
Nonetheless, should BTC find support and recover, it may rise to $85,000.
Ethereum’s price momentum indicators reveal ongoing weakness
Ethereum closed below the $2,125 support level on Sunday after experiencing a nearly 20% drop last week. As of Monday, it trades around $2,051.
If ETH continues its negative trajectory, it could see further declines testing the weekly support level at $1,905.
The RSI on the daily chart is at 35, having fallen from the neutral level of 50 last week, indicating bearish momentum. Additionally, the MACD showed a bearish crossover last week, suggesting a continuation of this downward trend.
ETH/USDT daily chart
Conversely, if ETH mounts a recovery and closes above the $2,125 level, it might challenge its next resistance at $2,359.
Ripple demonstrates bearish strength
Ripple faced rejection near its key psychological resistance of $3 on March 3 and has since declined by 27% through Sunday. At the time of writing on Monday, it is trading around $2.17.
If XRP continues its decline, it might test its daily support level at $1.96. A close below this level could lead to further declines, potentially reaching the low of $1.77 observed on February 3.
The RSI reads 42, which is below its neutral range of 50, indicating a bearish trend. The MACD also exhibited bearish crossover signals on Sunday, suggesting potential sell-offs and a downward trend.
XRP/USDT daily chart
However, if XRP recovers, it could rebound to test its next resistance level at $2.72.
FAQs About Bitcoin, Altcoins, and Stablecoins
Bitcoin is the largest cryptocurrency by market capitalization, designed as a digital currency for transactions. It is decentralized, meaning no single person, group, or organization controls it, eliminating the need for intermediaries in financial transactions.
Altcoins refer to any cryptocurrency other than Bitcoin. Some consider Ethereum a non-altcoin since most forks originate from these two cryptocurrencies. If true, Litecoin would be the first altcoin created from a fork of Bitcoin’s protocol, thus seen as an “improved” version.
Stablecoins are cryptocurrencies intended to maintain a stable value, pegged to a reserve asset. Their value is often tied to commodities or financial instruments, like the US Dollar (USD), with their supply adjusted by algorithms or market demand. Stablecoins aim to facilitate smoother transitions for investors trading in cryptocurrencies while providing a stable value storage option amidst overall market volatility.
Bitcoin dominance indicates the ratio of Bitcoin’s market cap relative to the total market cap of all cryptocurrencies. It reflects Bitcoin’s appeal to investors. A high BTC dominance often precedes or occurs during a bull market, as investors flock to more stable, high-cap cryptocurrencies. Conversely, a dip in BTC dominance can signify that investors are reallocating capital to altcoins in pursuit of higher returns, typically leading to a surge in altcoin activity.
