- The price of Bitcoin has been staying within the range of $94,000 to $100,000 since early February.
- Ethereum is trading at approximately $2,740 on Friday, reflecting a modest increase of 3% for the week.
- XRP continues to decrease on Friday after encountering resistance at the $2.72 mark the day before.
Bitcoin (BTC) has been holding steady between $94,000 and $100,000 since early February, indicating that this period of consolidation may soon come to a close. Meanwhile, Ethereum (ETH) displays potential strength, while Ripple (XRP) struggles to maintain its position.
Bitcoin’s consolidation phase may be nearing its end
For over two weeks, Bitcoin has traded between $94,000 and $100,000. On Tuesday, BTC saw a decline but found support at the lower boundary of this range, rebounding with a 2.75% increase by Thursday. As of Friday, it is fluctuating around $98,000.
A successful recovery past the upper limit of $100,000 could push BTC to test its January 30 high of $106,457.
The Relative Strength Index (RSI) is currently at 50 on the daily chart, indicating a neutral momentum level and a slight upward trend. For bullish momentum to remain, the RSI needs to stay above the neutral level of 50.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator recorded a bullish crossover on Thursday, signaling a potential upward trajectory.
BTC/USDT daily chart
However, should BTC fall and close below the $94,000 range, it may drop further, potentially reaching the psychologically significant level of $90,000.
Ethereum indicators suggest an upcoming rally
Ethereum encountered resistance at its descending trendline on February 1, resulting in a 13.87% drop, followed by a closing below the crucial $3,000 level. The correction continued with a near 9% decline in the week afterward. Despite this, ETH saw a slight recovery of 1.3% last week and an additional 3% this week, currently trading around $2,740 on Friday.
If ETH’s recovery persists, it may aim to retest the $3,000 mark.
The RSI sits at 44 on the daily chart, having bounced back from last week’s oversold level of 30, indicating reduced selling pressure. To maintain bullish momentum, the RSI needs to surpass the neutral 50 level, which would facilitate the potential recovery rally further. The MACD also provided a bullish crossover signal last week, reinforcing this upward trend.
ETH/USDT daily chart
Conversely, if ETH’s decline continues and drops below $2,359, it may test the next weekly support at $1,905.
Ripple struggles as it encounters resistance at $2.72
Ripple experienced a 14% rally last week, surpassing the $2.72 resistance on Friday before stabilizing at that level on Sunday. However, XRP fell below this support on Monday and declined 6% by Tuesday. It rebounded by 6.8% on Wednesday but faced resistance at $2.72, leading to a 1.83% drop the following day. Currently, it is trading around $2.64 on Friday.
If the $2.72 level remains a barrier, XRP may decline further to test the subsequent support at $1.96.
The RSI for XRP shows a reading of 49, suggesting a slight bearish sentiment as it deviates from the neutral threshold of 50.
XRP/USDT daily chart
Alternatively, should XRP close above $2.72 and establish support, it could ignite another rally towards its January 16 high of $3.40.
FAQs about Bitcoin, Altcoins, and Stablecoins
Bitcoin stands as the leading cryptocurrency by market capitalization, functioning as a digital currency. This form of payment is decentralized, meaning no single individual, group, or entity has control, thereby eliminating the need for intermediaries in financial transactions.
Altcoins refer to any cryptocurrency other than Bitcoin. Some exclude Ethereum from this category, as it is one of the primary currencies from which forks occur. Thus, Litecoin is often recognized as the first altcoin, having been forked from Bitcoin and considered an “improved” version.
Stablecoins are cryptocurrencies aimed at maintaining a stable price, typically backed by a reserve of the asset they represent. Their value is pegged to a commodity or currency, such as the US Dollar (USD), with supply regulated by algorithms or market demand. The primary purpose of stablecoins is to provide an accessible entry or exit for investors dealing in cryptocurrencies, as well as a means for value retention amidst volatility.
Bitcoin dominance is a measure of Bitcoin’s market capitalization relative to the total market cap of all cryptocurrencies combined. This metric illustrates Bitcoin’s popularity among investors. A high Bitcoin dominance often precedes or coincides with a bull market, as investors tend to favor stable, high-market-cap assets like Bitcoin. Conversely, a drop in Bitcoin dominance can indicate that investors are reallocating their funds to altcoins in pursuit of higher returns, frequently resulting in altcoin surges.
