- Bitcoin price hovers around $97,400 on Friday after losing nearly 5% in the last three days.
- Ethereum price failed to recover, trading around $2,700 and hinting at a downleg ahead.
- Ripple faced rejection around the $2.72 daily resistance; further correction on the cards.
Bitcoin (BTC) hovers around $97,400 on Friday after losing nearly 5% in the last three days. Ethereum (ETH) and Ripple (XRP) fail to recover and face rejection from their key levels, hinting at further corrections.
Bitcoin bears aim for the $90,000 mark
Bitcoin price faced a pullback, reaching a low of $91,231, but quickly recovered to close above $101,300 on Monday. However, it failed to maintain its recovery and declined nearly 5% in the next three days. At the time of writing on Friday, BTC trades at around $97,000.
If BTC continues its correction, it could extend the decline to test its psychologically important level of $90,000.
The Relative Strength Index (RSI) on the daily chart reads 44 after being rejected from below its neutral level of 50 on Monday, indicating bearish momentum. Moreover, the Moving Average Convergence Divergence (MACD) showed a bearish crossover last week, hinting at further correction ahead.
BTC/USDT daily chart
Conversely, if BTC recovers and finds support around $100,000, it would extend the recovery to retest its January 31 high of $106,012.
Ethereum price is poised for a downleg as it fails to recover above $3,000
Ethereum price faced a rejection around its descending trendline on February 1 and declined 13.87%, closing below its $3,000 psychologically important level the next day. On Monday, ETH dips and reaches a low of $2,125 but quickly recovers to close at $2,879. However, it failed to maintain its recovery and declined almost 7% in the next three days. At the time of writing on Friday, it hovers around $2,715.
If ETH continues its decline and closes below $2,359, it will extend the decline to test its next weekly support at $1,905.
The RSI on the daily chart reads 33, nearing its oversold level of 30, indicating a strong bearish momentum. The MACD also continued to show a bearish crossover last week, suggesting the continuation of a bearish trend.
ETH/USDT daily chart
However, if ETH recovers, it could extend the recovery to test its $3,000 level.
Ripple is set for a downward move as it faces rejection around $2.72
Ripple price broke below its ascending trendline (drawn by connecting multiple lows since early January) on February 2 and declined by 10.35%, closing below its 50-day EMA at $2.59. On Monday, Ripple dipped and reached a low of $1.77 but quickly recovered to close at $2.70. However, it failed to maintain its recovery, was rejected from the daily resistance level at $2.72, and declined nearly 14% in the next three days. At the time of writing on Friday, it hovers around $2.35.
Suppose XRP continues its pullback and closes below its daily support at $1.96. It could extend the decline to test its weekly support level at $1.40.
The RSI on the daily chart reads 35, heading towards its oversold level of 30, indicating a strong bearish momentum. The MACD also continued to show a bearish crossover last week, suggesting the continuation of a bearish trend.
XRP/USDT daily chart
On the other hand, if XRP recovers, it could extend the recovery to test its daily resistance level at $2.72.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
