- Bitcoin’s price encounters a minor setback around its crucial resistance level on Wednesday, following a recovery of 3.16% the previous day.
- Ethereum’s price surpasses its daily resistance at $1,861, signaling a potential recovery ahead.
- XRP’s price dips below its 100-day EMA, suggesting a correction may be on the way.
The price of Bitcoin (BTC) is seeing a slight rejection around the $85,000 resistance level on Wednesday after bouncing back by 3.16% the day prior. Ripple (XRP) trails Bitcoin as it has dropped below its crucial support, indicating weakness and a possible correction ahead. On the other hand, Ethereum (ETH) has successfully breached its key resistance level, suggesting a recovery could be on the horizon. Traders should keep an eye on US President Donald Trump’s “Liberation Day” announcement on Wednesday, which includes significant tariff updates that could lead to heightened volatility in the cryptocurrency sector given the potential implications of reciprocal tariffs.
Bitcoin rebounds and approaches significant resistance level
Starting the week on Monday, Bitcoin’s price stabilized around $82,500 and saw a recovery of 3.16% the following day. As of Wednesday, it is facing a slight rejection at its daily resistance level of $85,000, a crucial zone that aligns with both the 200-day EMA and a descending trendline.
The Relative Strength Index (RSI) on the daily chart shows a reading of 47 and is trending downwards after hitting a resistance at its neutral level of 50, indicating a bearish momentum. Should the RSI continue to decline, it may lead to a significant drop in Bitcoin’s price.
The Moving Average Convergence Divergence (MACD) lines are entangled, reflecting a lack of decisive movement among traders.
If Bitcoin keeps facing resistance at the $85,000 daily level, it may extend its decline and retest the next support level at $78,258.
BTC/USDT daily chart
However, if Bitcoin manages to recover and close above the $85,000 resistance, it could lead a rally toward the key psychological milestone of $90,000.
Ethereum may face further declines if $1,861 support fails again
Last week, Ethereum’s price closed below its daily support level of $1,861, experiencing a decline of 9.88%. However, at the beginning of this week, ETH rebounded with a 4.05% increase, staying above the $1,861 mark until Tuesday. At present, it is trading slightly lower and approaching its daily resistance of $1,861.
If ETH cannot find adequate support around $1,861 and continues its downward path, it could plunge to test the vital psychological level of $1,700.
The RSI on the daily chart indicates a reading of 40, falling below the neutral point of 50 and showing a downward trend, which suggests bearish momentum.
ETH/USDT daily chart
Conversely, if ETH manages to hold at the $1,861 level and continue its recovery, it could rally towards its recent high of $2,104 set on March 24.
XRP shows signs of weakness as it closes beneath its 100-day EMA
XRP’s price closed beneath its 100-day EMA at $2.30 last week, recording a decline of 12.40%. Over the past two days, it has stabilized around $2.14. As of Wednesday, it is trading slightly lower at approximately $2.09.
If XRP’s correction continues, it may drop to test its next support level of $1.96.
The daily RSI shows a reading of 39, falling below its neutral level of 50, similar to Bitcoin and Ethereum, indicating bearish momentum.
XRP/USDT daily chart
On the flip side, if XRP continues to recover, it might reach towards its previously breached 100-day EMA at $2.30.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin stands as the largest cryptocurrency by market capitalization, functioning as a virtual currency intended for monetary transactions. This payment method is decentralized, meaning it isn’t governed by any one individual, group, or entity, thus removing the necessity for third-party involvement in financial exchanges.
Altcoins refer to any cryptocurrencies besides Bitcoin. Some define Ethereum as a non-altcoin, as significant forks primarily arise from these two currencies. If this is the case, Litecoin is considered the first altcoin, as it forked from the Bitcoin protocol, thus representing an “enhanced” version of it.
Stablecoins are cryptocurrencies engineered to maintain a stable value, with their price supported by a reserve of the underlying asset. They typically peg their value to a commodity or financial asset, like the US Dollar (USD), with their supply adjusted based on demand or algorithmic controls. The primary aim of stablecoins is to provide a bridge for investors wanting to trade and invest in cryptocurrencies, while also allowing them to hold value amidst the volatility that typically characterizes the crypto markets.
Bitcoin dominance measures the proportion of Bitcoin’s market capitalization in relation to the total market capitalization of all cryptocurrencies combined. This ratio reveals investor interest in Bitcoin. A high BTC dominance often precedes and coincides with a bull market, as investors tend to favor more stable and high market cap cryptocurrencies like Bitcoin. Conversely, a drop in BTC dominance suggests that investors are reallocating their capital and profits toward altcoins in search of higher returns, typically sparking altcoin rallies.
