- The price of Bitcoin is nearing its significant resistance level at $85,000 on Monday, with a breakout signaling a bullish trend ahead.
- Ethereum’s price is around $1,600 after rebounding from its daily support during the previous week.
- XRP’s price is steady at approximately $2.14 on Monday after receiving support from its 200-day EMA last week.
The price of Bitcoin (BTC) is approaching its critical resistance point at $85,000 on Monday, and a breakout could suggest a bullish trend on the horizon. Both Ethereum (ETH) and Ripple (XRP) found support around their significant levels last week, indicating a potential recovery.
Bitcoin could surge towards $90,000 if it breaks above its 200-day EMA
Bitcoin’s price broke above its descending trendline (which has been present since mid-January) on Friday, rallying by 2.22% the next day. However, it encountered resistance at the $85,000 mark on Sunday, coinciding with the 200-day Exponential Moving Average (EMA) and daily resistance level. As of Monday, the price hovers around $84,000.
If BTC can break and close above $85,000, it may extend its rally to the psychological threshold of $90,000. A successful close above this mark could pave the way for a further rally to challenge its March 2 high of $95,000.
The Relative Strength Index (RSI) on the daily chart is currently flat at its neutral level of 50, suggesting indecision among traders. For bullish momentum to remain intact, the RSI must move above this neutral level.
BTC/USDT daily chart
If BTC is unable to close above $85,000 and continues to trend downward, it might decline to retest its next daily support level at $73,072.
Ethereum’s price may recover if it closes above $1,700
Ethereum’s price found support around its daily level of $1,449 last week and has seen some recovery but faces resistance near the $1,700 mark. As of Monday, it is trading around $1,638.
If ETH can continue its recovery and close above $1,700, it might rally further to retest its next daily resistance at $1,861.
The RSI on the daily chart sits at 42, having bounced back from the oversold territory of 30 last week. It is trending upward towards the neutral level of 50, which indicates a decrease in bearish momentum. The RSI must surpass its neutral level of 50 to maintain bullish momentum.
ETH/USDT daily chart
Conversely, if ETH closes below its daily support level of $1,449, it could see a further decline to retest the critical psychological level of $1,300.
XRP bulls targeting the $2.50 level
XRP’s price increased by 14.28%, surpassing its 200-day EMA at $1.95 on Wednesday. However, it dipped by 4.24% the following day, testing the 200-day EMA level again. XRP then resumed its upward trend, retesting its April 2 high of $2.23 on Sunday. As of Monday, it stabilizes around $2.14.
If XRP can break and close above $2.23, it could extend its rally to retest the March 24 high of $2.50.
The RSI on the daily chart is at 50, pointing upward, indicating that bearish momentum is diminishing. The RSI must remain above 50 for the recovery rally to continue.
XRP/USDT daily chart
If XRP closes below its 200-day EMA, it may extend the decline to retest its next support level at $1.77.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, designed to function as money. This payment method is decentralized, meaning it is not controlled by any single individual, group, or entity, thus eliminating the need for third-party involvement in financial transactions.
Altcoins refer to any cryptocurrency other than Bitcoin, although Ethereum is sometimes excluded from this classification due to its influence on the forking processes of these two cryptocurrencies. If this view holds, then Litecoin is regarded as the first altcoin, created as an “improved” version of the Bitcoin protocol.
Stablecoins are cryptocurrencies designed to maintain a stable price, with their value typically linked to a reserve of the underlying asset they represent. To achieve stability, a stablecoin’s value is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply controlled either by algorithms or market demand. The primary objective of stablecoins is to facilitate trading and investment in cryptocurrencies while providing a safer value storage option due to the inherent volatility of most cryptocurrencies.
Bitcoin dominance is the proportion of Bitcoin’s market capitalization relative to the total market capitalization of all cryptocurrencies. This metric gives insight into investor sentiment towards Bitcoin. A high BTC dominance often precedes a bull run, as investors gravitate towards stable and high-market-cap assets like Bitcoin. Conversely, a decrease in BTC dominance indicates that investors may be reallocating their funds and/or profits into altcoins in search of higher returns, typically igniting altcoin rallies.
