- Bitcoin’s price has been fluctuating between $94,000 and $100,000 since the start of February.
- Ethereum is currently trading around $2,700 on Monday, following a nearly 6% rally last week.
- XRP has encountered resistance at its daily level of $2.72, suggesting a potential decline ahead.
Bitcoin (BTC) has been holding within the range of $94,000 to $100,000 since early February. Both Ethereum (ETH) and Ripple (XRP) are displaying signs of weakening momentum indicators, which could indicate an impending downturn.
Potential Correction for Bitcoin if it Closes Below $94,000
Bitcoin’s price has been stable between $94,000 and $100,000 for nearly three weeks. As of Monday, it is trading slightly lower around $95,600.
If BTC drops and settles below the crucial support level of $94,000, it could lead to further declines toward the psychologically significant level of $90,000.
The Relative Strength Index (RSI) on the daily chart is at 43, which is below the neutral level of 50 and trending downwards, suggesting increasing bearish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator appears to be indecisive on the daily chart.
BTC/USDT daily chart
Conversely, if BTC rallies and breaks above the upper limit of the consolidation at $100,000, it could pave the way for a recovery to test its peak from January 30 at $106,457.
Ethereum’s RSI Indicates Weak Momentum
Following a near 6% recovery last week, Ethereum’s price has slightly declined at the beginning of this week, hovering around $2,754.
If ETH maintains its downward trend, it might retest the next support level at $2,359.
The daily RSI for ETH currently sits at 46, having faced resistance at the neutral level of 50 on Sunday and is trending downwards, reflecting bearish momentum.
ETH/USDT daily chart
On the flip side, should ETH continue to bounce back, it could test the $3,000 level again.
Ripple Facing a Downtrend if it Cannot Surpass $2.72 Resistance
Ripple’s price dropped by 5.57% last week after being rejected at the daily resistance level of $2.72. At present, it continues to decline, trading around $2.49.
If the resistance at $2.72 holds, it may lead to further declines toward the subsequent support level at $1.96.
The RSI on the daily chart for XRP reads 42, rejecting the neutral level of 50 and trending downwards, indicating bearish sentiment. Similar to Bitcoin, the MACD indicator shows indecision among traders on the daily chart.
XRP/USDT daily chart
However, should XRP manage to close above $2.72 and establish support, it could see a rally back to reconnect with its January 16 high of $3.40.
FAQs on Bitcoin, Altcoins, and Stablecoins
Bitcoin is the leading cryptocurrency by market capitalization, created as a decentralized form of currency that operates independently of any central authority, thus enabling peer-to-peer transactions without the need for intermediaries.
Altcoins refer to any cryptocurrencies other than Bitcoin. Some classify Ethereum as a non-altcoin since it often serves as a foundation for forks. The first altcoin, Litecoin, was forked from Bitcoin and marketed as an “enhanced” version of it.
Stablecoins are cryptocurrencies aimed at maintaining a stable price, typically backed by a reserve of the asset they represent. They are pegged to commodities or financial instruments like the US Dollar (USD), with supply managed through algorithms or market demand, primarily designed to offer a safe entry and exit for investors in the crypto market.
Bitcoin dominance measures Bitcoin’s market capitalization relative to the total cryptocurrency market cap. It offers insights into investor behavior and trends. A high BTC dominance often indicates a bull market phase, while a drop suggests investor migration towards altcoins in search of higher returns, which can trigger significant altcoin rallies.
