- The price of Bitcoin continues to decrease on Friday, having dropped over 15% this week.
- Ethereum has closed below its key support level of $2,359, persisting in its downward trajectory.
- XRP is nearing its critical support point at $1.96; a solid close beneath this level would fuel its downward trend.
The price of Bitcoin (BTC) remains in decline on Friday, experiencing a reduction of more than 15% throughout the week. Ethereum (ETH) and Ripple (XRP) have mirrored BTC’s decline, dropping nearly 24% and 21%, respectively.
Bitcoin bears targeting the $73,000 level
The price of Bitcoin has broken out of its lengthy consolidation stage, dipping below the $94,000 support level and closing at $91,552 after a 4.89% drop on Monday. BTC has continued its correction, decreasing by 8.2% over the next three days and settling below the $85,000 support level on Wednesday. As of this writing on Friday, it is still in a sell-off, trading at approximately $81,000.
If BTC maintains its downward trend, it could decrease further to test the next support level at $73,000.
The Relative Strength Index (RSI) indicator on the daily chart is at 21, which is below oversold conditions and trending downward, signifying strong selling pressure but may be technically positioned for a potential reversal or bounce. Nevertheless, traders should exercise caution, as the RSI could remain beneath oversold levels and continue correcting.
BTC/USDT daily chart
However, if BTC makes a recovery, it could attempt to retest the resistance level at $85,000.
Ethereum at risk for further downturn if it drops below $2,125
Ethereum’s price fell nearly 11% on Monday and continued on a downward path for the next three days, ultimately dropping 8.4% and closing below its daily support level of $2,359. As of Friday, it persists in its downward movement, testing the February 3 low of $2,125.
If ETH continues its decline and closes beneath $2,125, it may extend its drop to retest the weekly support level of $1,905.
Similar to Bitcoin, Ethereum’s daily chart RSI stands at 27, indicating it is below oversold conditions and trending downward, reflecting significant selling pressure but may technically be poised for a potential reversal or bounce. Caution is advised as the RSI might remain under oversold levels and continue its correction.
ETH/USDT daily chart
On the flip side, if ETH sees a recovery, it could reach toward its resistance level at $2,359.
Ripple bears might target the $1.77 mark
Ripple’s price dropped nearly 12% on Monday, hitting a daily low of $2.06 the following day. XRP’s decline continued with a 5.33% drop until Thursday. Currently, as of Friday, it is down by 7.6%, trading around $2.03.
If XRP closes below the daily support level of $1.96, it will extend its decline to challenge the February 3 low of $1.77.
The RSI reading on the daily chart stands at 29, which is below its oversold threshold and trending downward, indicating considerable selling pressure but could technically be due for a potential reversal or bounce. Traders are advised to proceed with caution, as the RSI may stay below oversold levels and continue to correct.
XRP/USDT daily chart
Conversely, if XRP manages a recovery, it could push towards testing its resistance level at $2.72.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization; it serves as a virtual currency intended for use as money. This form of currency is not governed by any single individual, group, or entity, thus mitigating the need for intermediary participation in financial transactions.
Altcoins refer to any cryptocurrency other than Bitcoin; however, some consider Ethereum not an altcoin, as forking primarily occurs from these two cryptocurrencies. In this context, Litecoin would be recognized as the first altcoin, having forked from Bitcoin’s protocol and presenting itself as an “enhanced” version.
Stablecoins are digital currencies intended to maintain a stable value, their worth typically backed by a reserve representing the asset it mirrors. They achieve this by pegging the value of each stablecoin to a commodity or financial instrument, like the US Dollar (USD), with their supply managed through algorithms or demand. Stablecoins mainly aim to provide an accessible entry and exit point for investors looking to trade and invest in cryptocurrencies, as well as serving as a means of value storage due to the general volatility of cryptocurrencies.
Bitcoin dominance measures the ratio of Bitcoin’s market capitalization against the total market capitalization of all cryptocurrencies combined. It provides insight into Bitcoin’s popularity among investors. A high BTC dominance is typically seen before and during a bull market when investors favor investing in relatively stable and high-capitalization assets like Bitcoin. Conversely, a decrease in BTC dominance usually indicates a shift where investors reallocate their capital and/or profits into altcoins, seeking higher returns, which often leads to robust rallies in altcoins.
