Bitcoin price finds support near the 200-day EMA at around $60,000. A solid close below would signal a decline ahead. Ethereum price ended below the key support at $2,461 and is looking ahead to a decline. Ripple price ended below a major support level, suggesting a continuation of the downtrend.
Bitcoin (BTC) is hovering around a major support level. A sustained closing price below this threshold could indicate further decline. Meanwhile, Ethereum (ETH) and Ripple (XRP) closed below key support levels, indicating further downside.
Bitcoin plans to resume downtrend if it breaks below key support levels
After rejecting the psychological level of $66,000 on Sunday, Bitcoin price retested on Wednesday and found support near the 200-day exponential moving average (EMA) at $59,904. As of Friday, it was trading just above that level at around $61,000.
Momentum indicators such as the Moving Average Convergence Divergence (MACD) are showing weakness in Bitcoin, with a bearish crossover on Tuesday. The MACD line (blue line) has crossed below the signal line (yellow line), giving a sell signal. Additionally, it also shows that the red histogram bar is rising below the neutral zero, suggesting that Bitcoin price may fall.
Additionally, the Relative Strength Index (RSI) remains at 47, below the neutral level of 50, indicating bearish momentum. If the RSI continues to fall below 50, Bitcoin price may fall further.
If BTC closes below the 200-day EMA of $59,904, it could drop nearly 5.7% from current trading levels and retest the September 18 low of $57,493.
BTC/USDT daily chart
However, if BTC rises and closes above the $62,125 level, it could resume its rally to retest the next resistance level at $66,000.
Ethereum Shows Bearish Signs as it Ends Below the $2,400 Support Level
Ethereum price fell below the 50-day EMA of $2,569, closed below the daily support level of $2,461 on Tuesday, and fell more than 9% by Thursday. As of Friday, it was slightly above $2,300.
The weakness in the momentum indicator MACD signal indicated a bearish crossover on Wednesday, similar to Bitcoin. The MACD line broke below the signal line, giving a sell signal. Additionally, it also shows that the red histogram bar is rising below the neutral zero line, suggesting that Ethereum price may fall. Additionally, the RSI is trading at 40, below the neutral level of 50, indicating strong bearish momentum.
If the $2,461 level acts as resistance, ETH could continue its decline and retest the September 6 low of $2,155.
ETH/USDT daily chart
Conversely, if ETH’s daily candlestick closes above the $2,461 level and above the 50-day EMA of $2,569, the bull market could continue to retrace the August 24 high of $2,820. There is.
Ripple is set for a decline as it closes below a major support level
Ripple price has rebounded from a high of $0.657 on July 31st and has fallen more than 18% in the following four days. During this decline, XRP fell below the 200-day EMA at $0.555, below the daily support level at $0.545, and closed below the uptrend line. As of Friday, it was trading slightly above $0.532.
If these levels (the 200-day EMA of $0.555, the daily level of $0.544, and the previously broken uptrend line) hold as resistance, the decline will further widen, pushing the August 5th low of $0.431. Might try again.
Similar to Bitcoin and Ethereum, momentum indicators MACD and RSI show a bearish bias, suggesting a continuation of the decline.
XRP/USDT daily chart
However, if Ripple rises and closes above the 200-day EMA of $0.555, it could extend its rally to retest the July 31 high of $0.657.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of a stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally volatile.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC’s dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. Decreasing BTC dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
