- Bitcoin’s value remains close to $78,600 on Monday following a nearly 5% decline last week.
- Ethereum struggles to maintain support at crucial levels, reaching prices not observed since 2023.
- XRP dips below its support threshold of $1.96, aiming for its annual low.
The price of Bitcoin (BTC) sits at approximately $78,600 on Monday after experiencing a nearly 5% drop last week. Similarly, Ethereum (ETH) and Ripple (XRP) mirrored BTC’s performance with respective declines of 13% and 10%. The market remains dominated by bearish sentiment as ETH hits lows not seen since 2023, while BTC and XRP aim for their yearly lows.
Bitcoin bears target its yearly low of $76,606
If Bitcoin fails to hold above $78,258 and closes below it, a further decline could occur, testing its annual low at $76,606 (March 11 low). A confirmed close below this level could lead to an additional drop toward the next daily support level at $73,072.
The Relative Strength Index (RSI) on the daily chart indicates a reading of 37, well below the neutral level of 50, suggesting strong bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator displayed a bearish crossover on Sunday, signaling potential sell conditions and a downtrend.
BTC/USDT daily chart
However, should Bitcoin find support at the $78,258 level, it could stage a recovery and attempt to retest its daily resistance at $85,000.
Ethereum hits levels not witnessed since October 2023
Ethereum experienced a significant drop of nearly 13% last week after failing to maintain a close above the daily level of $1,861. Moreover, on Sunday, it fell back to its critical psychological level of $1,700, a price point not reached since October 2023. At the time of this writing on Monday, it is trading around $1,575.
If Ethereum’s downward momentum continues, it may further decline toward its next daily support at $1,449.
The RSI currently registers at 27, indicating it is below the oversold threshold of 30, which may suggest that Ethereum is undervalued and could be ready for a price recovery. However, the RSI may remain in this oversold territory and continue its downtrend. The MACD also shows a bearish crossover from Sunday, indicating sell signals and a prevailing downtrend.
ETH/USDT daily chart
Conversely, should Ethereum find a recovery, it could push back up to test its important psychological level of $1,700.
XRP bears target annual low after closing below $1.96 support
XRP fell 10% in the previous week and ended below its 200-day Exponential Moving Average (EMA) at $1.94, closing beneath its daily support level of $1.96 on Sunday. At present, XRP continues trading at approximately $1.86.
If XRP maintains its downward trajectory, it could extend its decline to test the daily low of $1.77 from February 3, marking the lowest level of the year.
XRP/USDT daily chart
On the flip side, if XRP manages to recover, it may attempt to retest its previous daily level at $1.96.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin stands as the largest cryptocurrency in market capitalization, designed to function as a form of digital money. This currency operates without oversight from any individual, group, or entity, removing the necessity for third-party involvement in financial transactions.
Altcoins refer to any cryptocurrency that is not Bitcoin, although some classify Ethereum as a non-altcoin due to its frequent forking from these two cryptocurrencies. If this perspective holds, then Litecoin represents the first altcoin, formed from a fork of the Bitcoin protocol and thus an “enhanced” version of it.
Stablecoins are specifically designed to maintain a stable price, often backed by reserves of the asset they represent. To maintain stability, the value of a stablecoin is pegged to a commodity or financial asset, such as the US Dollar (USD), with supply managed by an algorithm or market demand. The primary function of stablecoins is to create a stable pathway for investors to trade and invest in cryptocurrencies. They also enable investors to preserve value amidst the overall volatility prevalent in the crypto market.
Bitcoin dominance is the measurement of Bitcoin’s market capitalization in relation to the total market capitalizations of all cryptocurrencies combined. It serves as a clear indicator of Bitcoin’s attraction among investors. High BTC dominance typically occurs before and during bull cycles, during which investors lean toward more stable assets with high market capitalization like Bitcoin. Conversely, a decline in BTC dominance suggests that investors may be reallocating their capital and/or profits toward altcoins in search of higher returns, potentially triggering a surge in altcoin rallies.
