After a rather lull week, Bitcoin (BTC) price leads the cryptocurrency market into the weekend, where the volume of transactions is expected to be at the lowest. Like the largest altcoin by market capitalization, Ethereum (ETH) and Ripple (XRP) prices have also not shown much activity this week, and this consolidation may prove detrimental, as markets tend not to wait for that long.
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.
Bitcoin price could slip after weeklong consolidation
Bitcoin (BTC) price has not shown any directional bias this week and is zoning into the weekend at the same level as last week, $25,940. Considering prices do not hold out for very long during times when the market is bearish (like now) or bullish, it is possible that BTC could slide lower.
Currently, Bitcoin price is sitting on a solid support level, a demand zone marked in orange. Typically, this is an area characterized by aggressive buying. However, bulls are not acting, which could prove destructive for BTC holders.
If the demand zone fails to hold as a support level, Bitcoin price could slip through, converting it into a bearish breaker before revisiting the mid-March lows around $24,079.
The Relative Strength Index (RSI) is still headed south despite being under the dreadful 30 level. This shows that momentum is still falling. The histogram bars of the Awesome Oscillator (AO) are also in the negative, adding credence to the bearish outlook.
BTC/USDT 1-day chart
Nevertheless, weekends have been known to be dominated by large wallets looking to take advantage of retailers stepping back for the weekend. If this plays out, Bitcoin price could show momentum within the weekend.
Conversely, Bitcoin price could rise, breaking past the immediate barricade at $27,300 before extending north. A move up to the supply zone (blue) is likely in such a turnout to the order block dominated by sellers. Overcoming this region could set the tone for BTC to reclaim the territory above the psychological $30,000, possibly tagging the $31,804 resistance level. Such a move would denote a 20% climb.
The presence of bulls in the BTC market is already evident, indicated by the large volumes of green bars of the AO.
Also Read: Bitcoin price holds at $26,100 range ahead of Jerome Powell’s Speech at Jackson Hole Symposium.
Ethereum price stuck in a range
Ethereum (ETH) price remains stuck within the $1,699 and $1,630 range after the August 17 dump. Speculation of an ETH futures ETF approval gave the market some momentum but not enough to break out from the zone. Currently, momentum indicators, the RSI and AO, point to a weakening market, and the PoS token could slump.
As volume continues to reduce, Ethereum price could lose the $1,630 support level before extending south toward the $1,507 support level. This would constitute a 10% drop from current levels.
ETH/USDT 1-day chart
Conversely, if the ETH ETF narrative continues to drive the market, expect Ethereum price to fight out the current gloom and head north. While a break above the immediate barrier at $1,699 would be ideal, invalidation of the current bearish outlook would only occur after ETH converts the supply zone (green) into a bullish breaker, forging above it to reclaim highs above the $2,000 psychological level. This would indicate a 20% ascent.
Also Read: Ethereum price outperforms Bitcoin on speculation that SEC may approve ETH futures ETF sooner.
Ripple price calculated next move
Ripple (XRP) is working out the next step after a rejection from the $0.5752 resistance level. Buying pressure from the demand zone (orange between $0.5040 and $0.4600) is present, though seemingly insufficient to facilitate a swift uptrend.
Unless bulls resurface strongly, Ripple price may slip through the immediate support offered by the demand zone to tag the range zone at $0.4191 potentially, levels last seen during the August 17 crash, provoked by the BTC dip and worsened by Judge Analisa Torres allowing the US SEC to file an interlocutory appeal.
XRP/USDT 1-day chart
On the other hand, increased buying activity could change the fate of Ripple price, sending it above the $0.5752 roadblock, thereby reclaiming the ground lost during the recent dip. A sustained uptrend could see XRP overcome multiple hurdles, but confirmation of an uptrend would only happen once the remittance token records a decisive daily candlestick close above the July 19 highs at $0.8193.
Also Read: XRP whale moves 29 million tokens to Bitstamp amid price slide
